Data on spending patterns finds that among young Indians spending during festive sales was 77% higher in 2020 as compared to 2019.
The festive sales this year were even bigger than 2019 especially among youngsters, says slice – a leading credit and payments startup. Data on spending patterns finds that among young Indians (between the ages of 18 and 30), spending during festive sales was 77% higher in 2020 when compared to 2019. Out of this, 74% of transactions took place digitally while a mere 26% happened offline.
Amazon also emerged as a preferred online shopping destination for young Indians followed by Flipkart. Between Flipkart and Amazon – almost 60% users shopped on Amazon vs 40% on Flipkart. However, when compared with the whole Flipkart group, including Myntra and Jabong, the split between Amazon and Flipkart group stands at 45% and 55% respectively.
There’s also been a steady increase in the acceptance and adoption of EMI-based purchases among this generation. Among digital transactions during the festive period in 2020, 71% of the purchases were on EMI, with four months being the average chosen tenure. This is once again higher than that compared to 2019 – where the share of EMIs was 58%.
Sharing these insights, Rajan Bajaj, CEO & Founder, slice said, “Starting September, we have seen a major revival in spending among youngsters. Not only has it gone back to pre-covid times, we have in fact seen a 150% increase in transaction volume per customer. While opening up of the lockdown has a role to play, the festive season has certainly fueled this further. Because of the pandemic, 2020 has been a difficult year and festivities are certainly playing an even more significant role in reminding youngsters of a more joyous and fun time.”
Rajan also added “E-commerce sites have emerged as the primary shopping destination for young Indians. Amazon and Flipkart combined have contributed to 21% of our overall transaction. In fact, we have seen our highest transaction volume ever during the festive season this year. No-cost EMI options for ecommerce platforms have seen a surge in popularity among youngsters and will continue to play a massive role in enabling them to shop independently.”
Slice arrived at this data by:
- Analysing spending patterns of 200,000 people
- Between the ages of 18 – 30 years
- Compared festive periods in 2019 and 2020 – which are typically pre-diwali periods when ecomm sites open up for sale
- 1st October to 17th November, 2020 and September 20 to November 01, 2019 respectively