Festive season thrives despite inflation; Indians prefer local markets and malls

financialexpress.com:

Despite escalating inflation, the forthcoming festive season is poised to witness substantial shopping activity. People are prepared to open their wallets wider this year compared to the previous one, with a notable trend towards shopping in local markets, malls, and offline stores.

A survey report from the broking and banking firm, UBS, has unveiled that a significant 70 percent of Indians plan to increase their festive season spending in comparison to the prior year. In contrast, 18 percent of respondents intend to maintain spending levels similar to those of the previous festive season.

However, only a mere 11 percent of those surveyed anticipate reducing their spending this time. The reason cited is the relentless upward trajectory of inflation. The cost of living and other expenses have surged, while income levels have remained stagnant.

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The survey findings also shed light on consumer preferences for the festive season. A substantial number of respondents express their intention to invest in smartphones, two-wheelers, cars, and prioritizing purchases of air conditioners, televisions, refrigerators, and laptops.

Traditionally, the festive season witnesses heightened demand for electronic goods, yet this year, a shift in consumer plans is evident, with increased interest in assets like gold and other investments.

Notably, the survey reports a decline in the preference for digital payments, with trust in cash transactions experiencing an upswing compared to previous trends. According to UBS, the inclination towards digital payments has dropped from 71 percent to 58 percent, while cash payments have risen from 27 percent to 35 percent.

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