Over the years, Valentine's Day has assumed great significance for the consumer economy. It has become a yearly gift-giving ritual for couples all over the globe. However significant the day might be for the lovers, marketers and advertisers look to capitalise on increasing disposable incomes with the urban, affluent millennial.
Numbers tell the story. Americans lead the charts for V-Day spending. Annual V-day survey by the National Retailers’ Federation (NRF) showed that individuals celebrating the holiday season planned to spend an average of $196, the highest ever, compared to last year’s record of $162.
This would bring total spending to a record-breaking $27.4 billion, 32 percent more than the previous record. While the V-day craze in India is still new compared to the developed world, the country’s millennial population is fast adapting to the Western sensibility of celebrating Valentine’s day, and here’s the fun bit – they’re now borrowing more than ever to execute the grand plans they make.
Online lending startup EarlySalary said that the company disbursed more than Rs 23 crore to young millennials and Gen Z between February 12 and 15, a growth of 46 percent year-on-year. The average age of the borrower during this period was 27 years and the average amount they borrowed Rs 23,500, up 35 percent over the same period last year. Predictably, about 53 percent of the borrowers were unmarried.
It was, however, mostly men, who were seen to borrow from the platform, forming 86 percent of the total borrowers, while only 14 percent were women. This trend, however, is not an oddity, as the proportion of women borrowing on the app mirrors the working population, Akshay Mehrotra, CEO and founder of EarlySalary told CNBC-TV18.
Nearly half of those seeking to borrow money were IT and IT services professionals.
The trend was most prevalent in big metros, with maximum number of loans being disbursed in Bengaluru at 24.8 percent, Delhi at 20.6 percent, and Mumbai with 12.5 percent. An interesting insight gauged from the data reiterates the clear preference millennials show towards accumulating experiences over things.
Nearly 29.6 percent borrowers on the app spent the money for a weekend holiday, by contrast, only 1600 transactions were made with the borrowed money, which amounted to over Rs 10,000.
First Published: IST