Chitrangana's Latest Report Analyzes the Impact of Inflation on Holiday eCommerce Shopping in India

NEW DELHI - Dec. 27, 2022 - PRLog -- Chitrangana, a leading eCommerce consultancy, has released its latest report on the holiday shopping season in India. The report shows that the way Indian consumers approached holiday shopping was significantly impacted by inflation. Retailers heavily discounted their products, but consumers diversified their spending to accommodate rising prices and a desire for experiences and festive gatherings post-pandemic.

According to the report, retail sales increased by 7.6% year-over-year between November 1st and December 24th, measured across in-store and online sales and all forms of payment. While restaurant sales were up 15% from the previous year, other holiday season mainstays such as jewelry and electronics saw a decline of more than 5%. Online sales increased by 10.6% compared to the previous year, with eCommerce making up 21.6% of total sales, up from 20.9% in 2021 and 20.6% in 2020.

Chitrangana's North APAC Chief Economist, Chitrangana Jain, stated that inflation changed the way that Indian consumers approached holiday shopping, causing them to search for the best deals and make trade-offs to stretch their gift-giving budgets. However, 50% of the consumers surveyed by Chitrangana reported that they were cutting back on spending this year due to a lack of funds, and an additional 56 million consumers chose not to shop at all.

Of those consumers who did shop, about half said that they planned to pay for their purchases using credit cards, loans, or buy now, pay later options. This means that approximately 98 million Indian consumers planned to pay for at least one holiday purchase using one of these methods, with as many as 23% of holiday shoppers (48 million consumers) intending to use these methods to finance more than half of their gift-giving.

When it came to determining their choice of retailer, Chitrangana research found that 60.4% of shoppers sought out discounts or sales, 48.3% wanted free shipping, and 11.4% looked for buy now, pay later options.

"Inflation altered the way Indian consumers approached their holiday shopping - from hunting for the best deals to making trade-offs that stretched gift-giving budgets," said Chitrangana Jain. "Consumers and retailers navigated the season well, displaying resilience amid increasing economic pressures."

Chitrangana's report provides valuable insights for retailers looking to navigate the challenges of inflation and the shift to online sales. For more information about Chitrangana's eCommerce consultancy services, visit https://www.chitrangana.com