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This article is more than 1 year old.

Overall spend may drop this festive season; 50% consumers could shop online: LocalCircles Survey

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Half of the festive shoppers will choose e-commerce this year for shopping compares to only 27 percent consumers last year, a  survey by LocalCircles showed. 

Overall spend may drop this festive season; 50% consumers could shop online: LocalCircles Survey
Half of the festive shoppers will choose e-commerce this year for shopping compares to only 27 percent consumers last year, a  survey by LocalCircles showed.
However, the overall spend during the festive season will likely see a fall from last year, as per the survey, as more people will shop for lower ticket items and more will refrain from spending.
"At an overall level, 61 percent consumers are expected to engage in festive spending this year as compared to 78 percent in 2019 and feedback suggests that a section of upper-middle-class consumers are likely to downgrade their spend,” said Sachin Taparia, Founder & Chairman of LocalCircles.
Fear of the coronavirus may see more people shopping from within their homes instead of stepping out to malls or markets.
“It is critical that traders and retailers list their products on e-commerce sites and also sell via WhatsApp/web sites so they can seize the demand that is there during the festive season,” said Taparia.
24 percent of those polled said they will visit malls, local retailers, markets for festive shopping.
Half of the consumer spending is expected to be concentrated to a few cities such as Bangalore, Hyderabad, Noida, Gurugram and Kolkata among top cities.
The survey, conducted at a national level received over 300,000 responses from consumers across 330+ districts of India, Localcircles said.
Here are some of the key findings from the survey:
  • 61% consumers are planning to spend during festive season 2020
  • 51% of those shopping, are expected to use e-commerce sites as their primary shopping channel. In 2019, it was only 27%.
  • Only 3% consumers indicated that they will spend over Rs 50,000 during festive season 2020.
  • 14% consumers said that they will spend between Rs 10,000 and Rs 50,000 this festive season
  • Top categories of consumer interest: festive grocery/food supplies, whitegoods, consumer electronics, home renovation and fashion
  • 80% e-commerce shoppers say they will consider buying festive items online from small businesses, artisans, weavers, etc. if they are listed
  • 37% e-commerce shoppers will use it for gifting purposes
  • 54% e-commerce shoppers certain that small retailers and kirana stores will see increased sales if they sell online
  • Max e-commerce spending expected from Bangalore, Hyderabad, Noida, Gurugram and Kolkata
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