A survey by Paisabazaar, involving over 2,300 credit card users, indicates a strong consumer preference for using credit card offers and rewards during the Diwali festive season. A significant majority, 91% of respondents, timed their festive shopping to take advantage of credit card-linked deals. Spending levels were high, with 42% of participants spending more than ₹50,000. Within this group, 22% spent between ₹50,000 and ₹1 lakh, and 20% exceeded ₹1 lakh.
The top categories for credit card spending during Diwali were home appliances (25%), followed closely by mobiles and gadgets (23%), and apparel (22%). Furniture and décor accounted for 18%, and gold and jewellery for 12%.
Cashback emerged as the most favored reward, desired by 20% of shoppers. Other popular incentives included co-branded offers (19%) and accelerated reward points (18%). For high-ticket purchases, financing plays a crucial role. Over half (56%) of those using EMIs opted for no-cost EMI plans, highlighting affordability as a key consideration.
Shopping habits are increasingly hybrid, with 48% of respondents splitting their purchases between online and offline channels. E-commerce platforms like Amazon and Flipkart were preferred for discounts, with 83% finding better deals online compared to 7% for physical stores.
Impact: This trend emphasizes a shift towards value-conscious and planned festive spending, heavily influenced by promotional offers and financial incentives. For businesses, it underscores the importance of robust credit card partnerships, attractive cashback/EMI schemes, and strong online presence during peak shopping seasons. The data suggests increased credit card disbursals and higher sales volumes for sectors leveraging these offers.
Impact Rating: 8/10
Explanation of Terms:
Cashback: A reward program where a percentage of the transaction amount is returned to the customer.
EMI: Equated Monthly Installment, a fixed amount paid by a borrower to a lender at a specified date each month.
No-cost EMI: An EMI plan where the interest cost is effectively waived off, often absorbed by the merchant or lender as part of the sale.
Co-branded offers: Promotions or rewards specific to a credit card co-branded with a particular retailer or brand.
Accelerated reward points: Bonus loyalty points earned on specific types of purchases or during promotional periods.