A recent survey report indicates a significant surge in online shopping during the festive season in India, driven primarily by UPI-based transactions. Let’s delve into the key findings of the report and the implications for this year’s festive sales.

UPI Dominance in Digital Payments

• 81% Intent to Shop Online: The survey reveals that 81% of consumers plan to shop online during the festive season, with digital payment methods gaining prominence.
• Preferred Payment Method: About 42% of consumers express their preference for Unified Payments Interface (UPI) for online festive shopping, showcasing the growing popularity of digital payment platforms.
• Rewards and Cashback: Furthermore, 57% of respondents highlight UPI as their preferred digital payment method for earning rewards and cashback, particularly during the festive period.

Consumer Preferences and Shopping Trends

• Electronics Remain Top Choice: Approximately 75% of consumers express interest in purchasing electronic gadgets and products, including smartphones, TVs, refrigerators, and ACs, during online festive shopping.
• Metropolitan and Tier-2 City Preferences: The survey indicates that 87% of consumers in metropolitan cities and 86% in tier-2 cities prefer online shopping for the festive season, reflecting widespread adoption across urban centers.
• Attraction Towards Festive Offers: Over 75% of consumers are drawn to online festive shopping events, especially for purchasing electronic items, leveraging attractive bank offers, and availing of convenient no-cost EMIs.
• Access to Trendy Brands: Online festive shopping events provide access to trendy brands for apparel, footwear, and fashion accessories, with 80% of consumers acknowledging the availability of trendy brands during these events.

Projected Growth in Online GMV

• Anticipated Sales Growth: With an estimated 140 million shoppers, India is poised to witness a significant increase in online gross merchandise value (GMV), expected to reach Rs 90,000 crore during the festive month.
• Positive Growth Trajectory: This projection reflects an 18-20% growth compared to last year’s festive month sales, highlighting the robust trajectory of online shopping in India.

As consumers gear up for festive celebrations, the report underscores the pivotal role of digital payment methods like UPI in driving online shopping trends, with electronics emerging as a top choice for festive purchases.