As the country recovers from the brutal second wave of Covid-19, Indians are ready to spend again during the upcoming festive season. According to a survey on consumer spending and saving habits by Buy Now Pay Later (BNPL) platform ZestMoney, 78 percent of the respondents are saving to splurge in the coming days.
The pan-India survey saw participation from 3,800 respondents, the majority of them being millennials, the fintech said. Up to 62 percent of them said they have planned to increase the festive budget compared to last year, indicating a strong revival in consumer spending habits.
The work-from-home-led demand for smartphones and other electronics is likely to continue into this festive season as 72 percent of respondents chose smartphones and consumer electronics as their preferred products to shop for.
Fashion, home decor, jewelry, automobiles, and personal care products are the other popular categories according to the survey.
Lizzie Chapman, CEO & Co-founder of ZestMoney, said, “We expect this to be a dhamaka festive season and the signs are already visible. People have started spending and the consumer demand is very upbeat for the next 3 months. We have seen customer applications go up by 10X on our platform and we have had to increase credit limits for select customers as many reach out asking for it.”
Another important point highlighted by the survey is that consumers are ready to go back to physical stores for all their shopping needs. With increased vaccination and the opening up of the economy, 75 percent of the respondents have expressed more comfort in shopping at physical stores than in 2020.
“We are seeing massive interest from retailers wanting to enable BNPL at their stores. We will soon have a network of one lakh physical stores across the country owing to the festive demand. Overall we expect a 3x YoY growth this festive season with demand across categories from electronics, home appliances, smartphones, and electric bikes,” added Chapman.
The survey also revealed that 67 percent of the respondents plan to spend on gifting and 59 percent will prefer BNPL or EMI options for making payments.
Founded by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in 2015, ZestMoney is a digital omnichannel BNPL player with a merchant network of 10,000 online and 75,000 physical stores. It has a customer base of 11 million, 70 percent of whom are from Tier II and III markets and are first-time credit seekers.