UPI-based transactions to drive festive sales in India : Report

The upcoming festive season in India is set to witness a surge in online shopping, driven by the popularity of UPI-based transactions. According to a recent survey report, approximately 81% of consumers plan to shop online during the festivities, with half of them willing to increase their spending compared to the previous year.

Rise of Digital Payments:

Digital payment methods are gaining prominence, with 42% of consumers expressing their preference for the Unified Payments Interface (UPI) for online festive shopping.

Moreover, 57% of respondents indicated that UPI is their preferred digital payment method for earning rewards and cashback, especially during the festive season.

Consumer Preferences:

The report highlights that around 75% of consumers are interested in purchasing electronic gadgets and products, including smartphones, TVs, refrigerators, and ACs, online.

Luxury and authentic:

beauty brands, home furnishing and improvement items, as well as consumables, are also popular choices for online shoppers.

Metropolitan and Tier-2 Cities Embrace Online Shopping:

An impressive 87% of consumers in metropolitan cities and 86% in tier-2 cities (with populations ranging from 10 to 40 lakh) prefer online shopping for their festive needs.

Retailer's Perspective:

Commenting on the findings, Manish Tiwary, Country Manager India Consumer Business at Amazon India, expressed optimism about consumers' willingness to spend more online.

He emphasized that the 'Amazon Great India Festival 2023' is geared towards offering a seamless shopping experience, excellent value, and an extensive selection of domestic and international brands and products.

Electronic Items a Festive Favorite:

More than 70% of consumers eagerly await online festive shopping events to purchase electronic items. Attractive bank offers and no-cost EMIs are highly appealing to over 75% of consumers, making their purchases more convenient and rewarding.

Fashion and Trends:

Approximately 80% of consumers believe that online festive shopping events provide access to trendy brands for apparel, footwear, and various fashion accessories. Nearly 64% of respondents intend to make purchases in these categories during the festive season.

Festive Month Projections:

With approximately 140 million shoppers contributing, India is expected to achieve an online gross merchandise value (GMV) of Rs 90,000 crore during the festive month, representing an 18-20% increase compared to the previous year, according to a report by Redseer Strategy Consultants.

Some relevant and latest facts for the news article on UPI driving festive sales in India:

• According to a recent report by market research firm Redseer Strategy Consultants, India is expected to witness Rs 90,000 crore worth of online gross merchandise value (GMV) in the festive month of 2023, up 18-20% from last year.

• The report also found that UPI is the preferred digital payment method for online festive shopping, with 42% of consumers saying they will use it this year.

• Electronics are the most popular category of products that consumers plan to purchase during the festive season, followed by luxury and authentic beauty brands, home furnishing/improvement items, and consumables.

• Online retailers in India are offering a wide range of discounts and promotions during the festive season to attract customers. For example, Amazon India is offering its Prime members early access to deals and discounts during its "Great Indian Festival" sale.

• The increasing popularity of UPI is expected to boost festive sales in India this year. UPI is a convenient and secure payment method that is preferred by many consumers.

In addition to the above, here are some other relevant and late st facts about UPI and festive sales in India:

• The number of UPI transactions in India crossed 10 billion in August 2023 for the first time, according to the National Payments Corporation of India (NPCI).

• UPI is now the most popular digital payment method in India, with over 260 crore transactions processed in August 2023.

• The Indian government has been promoting the use of UPI through various initiatives, such as the RuPay card and the Bharat QR code.

• The festive season is the busiest time of year for online retailers in India, and UPI is expected to play a major role in driving sales this year.