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60% Indians ready to spend this festive season, up from 30% at Covid 2nd wave peak: Survey

Survey by LocalCircles says the rise indicates the 'economic uncertainty that was prevailing in May at the peak of second Covid-19 wave has greatly reduced'.

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New Delhi: The percentage of Indian households planning to spend during the upcoming festive season — spanning Durga Puja, Dussehra, and Diwali — rose to 60 per cent in September from 30 per cent in May, according to a survey conducted by LocalCircles, a community social media platform.

The survey results, published Friday, are based on over 115,000 responses received from over 38,000 households across 396 districts.

Sixty-three per cent of the respondents surveyed were men while 37 per cent were women.

According to the survey, the fact that 60 per cent of households are planning to spend during the festive season indicates that the “economic uncertainty that was prevailing in May at the peak of second Covid-19 wave has greatly reduced”.

However, the survey also found that “budget” and “safety” have become top priorities for households engaging in festive shopping this year, owing largely to the Covid-19-induced financial burden, led by the reduction in earnings due to the subsequent lockdowns, and the prediction of a third Covid wave.

While about 35 per cent of respondents said their criterion for shopping will be “budget/value”, another 35 per cent picked “safety”, while 18 per cent voted for “convenience”. Ten per cent said they they will go for “selection or range” (which means they will explore options and buy accordingly) and two per cent cited “other aspects”. The question received a total of 7,980 responses.

To a question on whether they will buy products at the “maximum retail price (MRP)”, 16 per cent of 9,269 respondents said “yes”, while 49 per cent said “no” and 35 per cent said said they were undecided. Those who replied in the negative clarified that they will only shop where they get value for money.

Also, while 39 per cent of 9,381 respondents voted for online shopping this festive season, 13 per cent said they will opt for home delivery from local stores, while 40 per cent said they “would like to visit the stores or market and buy”.


Also read: 88% Indians happy to be back in office, 83% won’t go on vacation this year: Axis My India poll


Big-ticket buys to include smartphones, consumer electronics

Of those planning big-ticket purchases this festive season, 55 per cent (evaluated in order of priority) said they are likely to buy smartphones and other consumer electronics, such as TVs, tablets, laptops, and printers, while 37 per cent they will go for “home renovation products like furniture, decorative, paints, sanitaryware, lighting”, and 26 per cent chose “white goods and appliances such as AC… air purifiers”.

When it came to food items, the survey found that 72 per cent of those spending on food and groceries this festive season are likely to buy dry fruits, traditional sweets, bakery products and chocolates, while 41 per cent are planning to spend on “special groceries and fruits”, and 27 per cent on “gourmet foods and beverages”.

About 67 per cent of those likely to spend on the beauty and fashion category are likely to buy apparel or clothes, 30 per cent said they will buy “shoes, bags, other accessories”, while 24 per cent are likely to buy “cosmetics and fragrances”.

The survey also pointed out that 84 per cent of those who plan to use digital payments as the primary mode of payments for this year’s festive shopping list “convenience” as the reason, 54 per cent find it “safe and trusted”, and 36 per cent will use it to “earn rewards, cashback and/or get easier access to EMI”.

According to the survey, when it comes to festive gifting, 48 per cent of respondents said they are likely to order gifts online, while 42 per cent said they will buy them locally and 10 per cent chose digital money or e-shagun.

(Edited by Poulomi Banerjee)


Also read: How inflation is hurting Indian companies, and can soon hurt consumers too


 

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