Amid fears of inflation, one in three Indian households will likely spend over Rs 10,000 during this festive season, a survey by community social media platform LocalCircles showed, although the total expenditure by consumers will still remain below pre-pandemic levels.
The survey found that footfalls in stores and markets are expected to rise by 20 percent and that 49 percent of household consumers are keen to make physical purchases, an increase from 40 percent last year. It said 38 percent are likely to order via ecommerce or local stores and take home deliveries.
“Safety and convenience had last year seen 13 percent opting for home delivery after making selection from online catalogue by local stores. This year the demand for the channel has come down from 13 percent in 2021 to 5 percent,” LocalCircles said in a report.
The festive months starting in mid-September make up the busiest shopping season of the year in India. However, overall festive season spending this year will likely dip to over $32 billion from $37 billion in 2019.
The survey received 58,000 responses from household consumers in 362 districts in the country.
The survey found that 35 percent of the respondents planned to buy Pooja or Diwali supplies including diyas, lamps, candles, lighting, and flowers, while 26 percent expected to purchase festival groceries like gift packs, gourmet foods, dry fruits, chocolates, fresh fruits and traditional sweets. Twelve percent may buy beauty and fashion products and another 12 percent want to buy home and renovation products such as furniture, furnishing, paints, and sanitaryware.
One-third of the households that plan to spend over Rs 10,000 during the festive season are likely to buy real estate, automobiles, jewellery and gadgets. The top category will include Diwali supplies and festive groceries, and in services, home repairs and travel, according to the report.
Moneycontrol reported earlier that growth in festive season sales on e-commerce platforms will be muted this year due to inflation. Year-on-year growth is anticipated to be 15-20 percent compared with 25-50 percent over the past few years.Additionally, buy-now-pay-later companies expect a banner festive season with as much as an eightfold rise in disbursals compared with the same period last year because they expect inflation as a tailwind for credit demand.