55% of consumers opt for Credit Cards over Debit Cards as the most preferred mode of payment.
Cash spends preference in 2019 drops by 10% as compared to 2018
Festive Shopping Index 2019 by Retailers Association of India (RAI) and LitmusWorld indicates that 89% of Indian consumers are willing to shop during the ongoing festive season.
The most preferred mode of payment opted by consumers are credit cards at 55% as compared to 42% last year, followed by debit cards at 28% this year as compared to 26% last year. The report further indicates that consumers are resisting to spend cash during the ongoing festive season with the preference dropping from 19% last year to 9% this year. Mobile Wallets and Net Banking modes of payment also show a downward trend with 5% and 3% respectively this season as compared to 8% and 6% respectively last year.
Sharing more insights on the festive shopping sentiments, Kumar Rajagopalan – CEO, Retailers Association of India (RAI), said, “The Festive Shopping Index 2019 brings out the enthusiasm among consumers for festive shopping. This is encouraging. As many as 61% of the survey respondents are looking at spending over Rs. 15,000/- this festive season and an enthusiastic 12% are looking to spend more than Rs. 1 Lakh during the ongoing festive season. This indicates that retailers have reasons to plan for a positive festive season.” Bringing in the festive cheer, the overall shopping budget of consumers is looking up. About 26% of consumers are willing to spend from Rs. 15,000 to Rs. 30,000 and 23% looking at spending above Rs. 30,000 to Rs. 1 lakh.
Product features followed by discounts are the most influencing factors for purchase decisions this festive season. However, consumers are also looking at unique experiences and cashback offers, followed by attractive EMI offers and the opportunity to redeem their kitty of Loyalty Points. In the last 3 years, Apparel & Fashion stands out as the most indulgent category. From 57% of consumers wanting to shop for apparel in 2017 to 71% of consumers shopping apparel this year. The second dominant category continuous to be Home Appliances and Electronics at 49% followed by Mobile Phones at 40% this year. However, consumers’ willingness to spend on Jewellery and Home furniture stands at 19%. In addition, 16% consumers are considering spending on travel and 14% are considering buying a new set of wheels.
Online (76%) and Malls (71%) continue to be the most preferred shopping channels for consumers this festive season. The most influential advertising mediums for consumers continue to be Online and Social Media, followed by TV, Newspaper, Outdoor and Radio.
Shedding more light on the findings of the survey, Ramesh Natarajan – COO & CoFounder, LitmusWorld said, “In its third year, the Festive Shopping Index has given a clear direction to brands that customer experience cannot be ignored. Demand is here to stay if businesses deliver superior experiences across phygital touchpoints.” The Festive Shopping Index is an annual consumer sentiment survey by the Retailers Association of India (RAI), and LitmusWorld. The survey initiates conversations with Indian consumers to measure their shopping sentiment during the festive season. The Index predicts the predominant consumers’ shopping behaviour during the festive season, which retailers can use as a guide to becoming more consumer-centric during the most crucial quarter of the year.