Despite concerns around inflation and discretionary spending, customers seem to be looking forward to indulging in shopping for fashion products, smart phones and electronic appliances this festive season, reports Redseer Strategy Consultants.
Some 83% of the respondents surveyed indicated a willingness to indulge in shopping this festive season and positive sentiments were spotted for fashion, mobiles, electronics and large appliances, according to Redseer’s recent survey.
Consumer sentiment was particularly bullish for fashion and electronics this festive season, measured by the increasing willingness of consumers to shop for these categories compared to last year. For instance, 63% of consumers are planning to spend on fashion categories compared to 56% last year, while 53% of consumers are going to spend on electronics compared with 44% last year, the study found.
In fact, online fashion was only expected to get bigger during festive sales this year as the growth of this segment was being driven by an expanding customer base from Tier 2+ cities and first-time customers who start their online shopping journey with fashion, it said.
“Increasing shopper base from tier 2+ cities resulted in 2.5x growth in fashion shoppers in the last 4 years,” said Sanjay Kothari, Associate Partner, Redseer Strategy Consultants. Sellers on e-com platforms were also optimistic about volume growth in fashion sales during the festive season. Most sellers are expecting over 20% growth, 1.2x higher than last year’s festive sales, driven by better consumer awareness, stronger support from the platforms and better sales planning by the sellers and the platforms, as per the study. In a report released earlier this month, Redseer predicted the festive sales to grow to $5.9 billion this year during festive week 1 and $11.8 billion GMV during the entire festive month.