In 2023, the festive season saw a significant shift in shopping habits, with a notable 85% of credit card users in India turning to online platforms to maximize savings. This was revealed in a survey conducted by Paisabazaar, an online marketplace for consumer credit, which polled 700 credit card users. The survey highlighted the growing influence of e-commerce platforms during the festive period, particularly with the attractive discounts and credit card promotions tied to online sales.

Why Online Shopping Dominated the Festive Season
The surge in online shopping was largely driven by the array of discounts and special offers available through popular platforms like Amazon and Flipkart. A key finding from the survey was that 85% of respondents planned their festive purchases around online deals, specifically those that were linked to credit card promotions. This trend is reflective of a broader shift towards digital shopping, as more consumers seek to maximize savings during high-demand shopping periods. The survey also found that a majority of respondents preferred to shop online due to the convenience, variety, and ease of accessing deals and offers.

The credit card promotions offered by e-commerce giants such as Amazon and Flipkart were particularly popular. Special deals, including cashback, EMI options, and no-cost EMI schemes, drove a considerable portion of online shopping behavior. Over 80% of survey participants reported benefiting from card-specific offers, making them even more likely to complete their purchases online. Higher cashback offers were the most favored, with no-cost EMI schemes also gaining popularity, especially among younger consumers. In fact, 68% of respondents opted for EMI facilities, and 57% chose no-cost EMI as their preferred payment method.

Growth in Online Spending
The trend of online credit card spending had already been gaining momentum earlier in the year. By April 2023, online credit card spending reached a staggering US$ 11.20 billion (Rs. 94,516 crore), accounting for 60% of total credit card transactions. This share saw continuous growth, peaking at 65.3% in September 2023. These figures indicate a clear shift in consumer behavior, with more people embracing e-commerce as their primary shopping channel.

According to Datum Intelligence, e-commerce sales in September and October 2023 amounted to approximately US$ 12 billion (Rs. 1,01,271 crore), marking a 23% increase compared to the previous year. This spike in sales was driven by the festive season sales, including events like Diwali and Dussehra, which offer attractive deals and discounts across multiple product categories.

Most Popular Products During the Festive Sales
As expected, the top categories of products purchased during the festive sales were gadgets, clothing, accessories, and home appliances. These items were frequently discounted during the festive period, further fueling the shift to online shopping. Gadgets and electronics, in particular, saw a surge in purchases, with many consumers opting for discounted electronics or taking advantage of EMI offers to make high-value purchases more affordable.

The survey also noted that 48% of participants exclusively shopped online during the festive season, while another 45% engaged in a combination of online and in-store shopping. This data highlights the strong preference for digital shopping, especially when it comes to taking advantage of exclusive online deals. In contrast, only 7% of respondents preferred to do their shopping entirely in physical stores, reinforcing the dominance of online shopping in today's retail landscape.

What Drives the Shift to Online Shopping
The ease of access to exclusive online deals and the ability to compare prices across multiple platforms are among the main reasons why consumers continue to choose e-commerce over traditional shopping. During the festive season, online platforms offer a variety of discounts that are not available in physical stores. Additionally, the convenience of shopping from home, the ability to browse a wider selection, and the availability of flexible payment options make online shopping increasingly attractive.

Moreover, the availability of EMI schemes and cashback offers tailored to credit card users has also made online shopping a more financially viable option. For many consumers, using EMI facilities during the festive season helps spread out payments for larger purchases, making them more manageable.

The Role of Credit Cards in Festive Spending
Credit cards played a significant role in facilitating online festive shopping in India in 2023. With more people looking to make the most of online discounts, credit card issuers have tailored their offerings to provide cardholders with extra incentives. These included not just cashbacks and discounts but also no-cost EMI options, which made it easier for consumers to buy high-value products like gadgets, electronics, and home appliances.

The ability to split payments over several months with no interest is particularly attractive to younger consumers, many of whom were a large part of the survey's respondents. Approximately 76% of respondents were under the age of 35, underscoring the importance of appealing to a younger, more digitally-savvy demographic when crafting promotional offers.

Conclusion
The data from Paisabazaar's survey demonstrates the increasing dominance of online shopping in India, particularly during the festive season. As credit card usage grows, especially among younger generations, the importance of exclusive online deals, EMI options, and card-specific promotions cannot be overstated. These factors will likely continue to shape the future of e-commerce and credit card usage in India.

For those looking to take advantage of these growing trends, it's an excellent opportunity to explore online shopping platforms that offer credit card promotions and other exclusive festive offers. Make sure to plan your purchases around major sales events, ensuring you maximize your savings during these festive sales.

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