3 in 5 Indian households will spend this festive season: LocalCircles

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There is a cheer of high spirit and positive sentiment with the festive season approaching and people prepping up their homes for Durga Puja, Dussehra and Diwali. In stark contrast to what the nation was grappling with, a few months ago with the second wave of Covid-19, people are ready for the major festive season in the months of October and November. They are buying various discretionary items, gifting families and friends. According to a survey conducted by LocalCircles, during these festive months, Indians usually spend on major purchases from making big-ticket purchases such as smartphones and consumer electronics and white to fashion and beauty-related products, along with festive foods and groceries, and a festival or pooja-related products, to name a few categories.

LocalCircles reached out to consumers 2-3 times a year to understand their pulse via its “Mood of the Consumer” survey. The study received over 115,000 responses from over 38,000 households located across 396 districts of India. 63% of respondents were men while 37% of respondents were women. 44% of respondents were from metros/tier 1 districts, 31% from tier 2 and 25% respondents were from tier 3, 4 and rural districts.

Survey findings

– Percentage of households planning to spend during the festive season rose from 30% in May to 60% in September

– 52% of households that will shop this festive season are likely to do so by ordering online and via local stores for home delivery

– 49% of households spending this festive season will only shop where they get value

– 55% of those spending on big-ticket items to spend on smartphones and consumer electronics

– 67% of those spending on fashion and beauty this festive season, to spend on apparel/clothes

– 72% of those shopping for food to spend on buying dry fruits, traditional sweets, chocolates, etc.

– Digital Payments to be the primary payment mode for 2 in 3 households during this festive season

– Gifting likely to be strong this festive season, 48% likely to order them online while 42% to buy them locally; 10% to gift digital money or e-shagun

– Study receives over 115,000 responses from over 38,000 households across 396 districts of India

60% of households will spend during the festive season

The percentage of households who would be shopping during the upcoming festive season constituted 60% of the survey respondents. This indicates that there has been a strong improvement in consumer sentiment from May 2021, when only 30% of households in the LocalCircles survey had indicated that they plan to make discretionary purchases in the next 12 months. With 60% of households now planning to spend during the festive season, it indicates that the economic uncertainty that was prevailing in May at the peak of the 2nd Covid wave has greatly reduced.

‘Budget’ and ‘safety’ to be top criteria

The way Indian households shop and purchase has significantly changed in the last 18 months of the pandemic. With markets completely shut during the March-May 2020 lockdown, many consumers took to digital channels like eCommerce platforms and websites, coordinating with local stores via Whatsapp and phone and making home deliveries. Many started using digital payments in lieu of cash due to the fear of infection and took “no-contact” deliveries. Though physical stores resumed operations post the 1st lockdown and again after the 2nd lockdown this year, the way many consumers go about shopping has changed permanently. Also, with the pandemic, a set of households have been impacted financially due to loss of a job or reduction in earnings. Then there have been others where 1 or more family members experienced Covid and its financial burden.

(Source: LocalCircles)