Festive season spend may fall 33%; realty, auto to bear brunt

Consumers spending in the upcoming festive season is likely to drop by onethird compared to last year and coronavirus impact may further add to the woes of local retailers, according to a survey by Localcircles. Most of the consumers surveyed opined that they want to buy small traditional items and gift packs online instead of going to market.

"With COVID-19, consumer spending in festive season 2020 is expected to get impacted by approximately one third in value in comparison to festive season 2019 with major decline expected in property, automobile and jewellery purchases," Localcircles founder and chairman Sachin Taparia said.

The survey covered over 65,000 respondents across more than 300 cities. Around 61% of consumers said they will spend on purchases in this festive season compared to 78% respondents in 2019.

Around 14% consumers said that they will spend between Rs 10,000 and

Rs 50,000 in the upcoming festive season, 44% between Rs 1,000-10,000 and only 3% said that they will spend more than Rs 50,000 for purchases.

Most of the consumers said they will spend money on grocery and food supplies, 19% on white goods and appliances, 15% on smartphones and consumer electronics, 11% on home renovation and 8% on fashion and festive wear.

"Due to Covid-19, e-commerce is expected to see a major spike as the percentage of consumers that will use ecommerce as a primary channel for shopping is expected to rise from 27% last year to 51% this year," Taparia said.

Around 80% of the consumers expressed interest in buying festival-related items from small businesses, emerging brands, weavers and artisans from e-commerce portals.