06 October 2023, Mumbai
Indians are gearing up for a lavish spending spree this festive season, with 70% of respondents planning to increase their spending, according to a recent UBS report released on Wednesday. The report surveyed 2,000 Indians across 10 cities and found that average festive spending is expected to increase by 15% this year.
Shift to Cash Payments
The report also revealed a shift from digital to cash payments, with the former dropping from 71% to 58% and the latter rising from 27% to 35%. This suggests a growing preference for buying local and offline goods, which could boost Prime Minister Narendra Modi's "Vocal for Local" initiative.
Boost for Local Businesses
The shift to cash payments is also likely to benefit local businesses, which often do not accept digital payments. Additionally, the increase in festive spending is expected to boost the Indian economy.
Implications for Businesses
The findings of the UBS report have several implications for businesses. First, businesses should focus on offering attractive deals and discounts during the festive season to attract customers.
Second, businesses should make it easy for customers to pay in cash, especially if they are targeting local customers. Third, businesses should invest in marketing and advertising campaigns to reach out to potential customers during the festive season.
Sum & Substance
The UBS report reveals that Indians are ready to splurge on festive shopping this year, with a growing preference for buying local and offline goods.
This is a positive development for the Indian economy and could boost the sales of local businesses.
