Local businesses will win big as consumers see the benefits of buying locally: Shopify report


  • Shopify France launches the 2021 Party Shopping Outlook Report.
  • India’s retail industry can expect to serve smarter, more savvy shoppers this Diwali.

Shopify India has released an exclusive industry trends report based on its 2021 Consumer Insights survey. The Festive Shopping Outlook Report 2021 was developed against the backdrop of the pandemic, even as India’s retail sector continues to experience dramatic changes in consumer behavior and shopping habits. The survey, conducted between September 15, 2021 and October 20, 2021 among 800 Indian metropolitan and non-metropolitan buyers, reveals the evolution of consumer purchasing preferences as the market approaches. holiday season. These trends will ultimately determine the course the Indian retail sector takes, elevating consumer strategies and aligning with the new order.

Shopify India’s survey was released to decode trends and shifting consumer sentiment as Diwali approaches – one of India’s most important annual festivals, which also translates into the biggest shopping spree. from the country. At its core, the report aims to study the impact that several bottlenecks, changing retail landscapes and a struggling economy have had on the pockets and mindsets of consumers.

The Festive Shopping Outlook Report 2021 published nine major trends that emerged from the Consumer Insights survey.

Increased confidence in e-merchants dilutes anticipated traditional festive purchases

The allure of last minute discounts along with the fast / express delivery benefits offered by online retailers have helped gain consumer confidence. According to the Shopify India report, 2 in 3 Indian shoppers had not started shopping for the holiday season when they completed this survey. This contrasts sharply with traditional behaviors before the pandemic, where festive shopping in India was in full swing almost a month in advance.

Small towns in India are emerging as key growth poles for online shopping

Multiple factors such as nationwide mobile penetration, brands choosing to upgrade to a D2C model, improved last mile delivery, and user-friendly return policies have helped drive the millennial non-metro customer to opt for digital media. While online shopping – over the past decade – has been widespread among consumers in India’s Tier I metropolitan cities, the pandemic has accelerated and has pushed that growth up in Tier II city rankings and non-metros as well. According to Shopify’s Festive Shopping Outlook report, 53.5% of millennial shoppers from non-subways showed a strong preference for shopping online.

Health and Safety Concerns Push Customers to Adopt Technology-Driven Family Shopping Experiences

Even with an increase in vaccinations, consumers are wary of offline / physical purchases and in-person interactions. The convenience, value for money, and personalization offered by online gamers have increased the appeal of online shopping. However, one thing remains the same – Indian shopping still continues to be a family affair! Half of the survey respondents indicated that they would prefer to involve their families even when shopping online during the holiday season.

Local businesses will win big as consumers see the benefits of buying locally

Almost 58% of respondents said they would prefer to support and buy small businesses online during the holiday season this year. This contrasts sharply with the usual penchant for high-end brands when it comes to party favors and shopping. Smaller retailers have succeeded in capturing the attention and loyalty of consumers by offering a range of value-for-money options, as well as individual attention and personalized experiences. These benefits, combined with the emotional pull consumers feel to support and encourage businesses struggling to survive, have helped boost online sales at these small, local establishments.

Festive gifts become utilitarian

Consumers are now turning to gifts with high functionality and utility value, as opposed to standard party candy or dried fruit tokens. Home lockdowns have led consumers to realize the need to constantly improve or improve their homes. It’s no surprise that home decor and furnishings are at the top of this year’s festive shopping lists, with over 50% of respondents showing a preference for gifts in this category.

Big budgets parked for electronics, darkening the spotlight on jewelry

Although viewed as auspicious as well as status symbols, gold and precious metal jewelry, which have been favorites for traditional festive gifts, appear to have fallen out of favor with Indian buyers this year. The pandemic has prompted consumers to put their money where the biggest addictions are; in technological gadgets. This holiday season, electronic gadgets are all set to command peak consumer gift budgets with nearly 42% of Shopify survey respondents showing an increased propensity for them. High-speed internet connections and the increased need to stay connected have increased consumers’ reliance on gadgets. This has resulted in a high proportion of the reduced party budgets allocated to electronics this year.

Consumer sentiment confirms online shopping boom is here to stay

According to the Shopify India 2021 Festive Shopping Report, 76.9% of Indian consumers show a deep inclination to shop online this holiday season due to the convenience it offers. While festive shopping has traditionally been an offline retail activity, pandemic-induced restrictions put in place to contain the virus have forced most retail activity to move online. A practice that many consumers also know and appreciate for the bouquet of benefits it offers. However, this year, even with the lifting of most restrictions, high vaccination rates and a drop in the number of covid cases in India, Shopify India has seen a continued preference for virtual retail.

Contactless Spending Set to Dominate Future of Payments in India and “Bharat”

With the pandemic requiring contactless payments and increasing cashless transactions, cash is no longer king in an economy that previously relied heavily on cash. Army of the second largest mobile user base in the world, India has entered the era of electronic payments with simple, convenient and accessible UPI payment options. Almost 50% of people surveyed by Shopify said they would rather process payments through UPI than any other form of transaction. Interestingly, preference remains constant in both online and offline shopping experiences.


Diwali 2021 is expected to witness the rise of a generation of smarter, more savvy Indian consumers who rely heavily on technology and mobile connectivity. They now seek convenience and value above all else and have moved away from traditional token gifts. It can be said that this year Indian consumers are planning their Diwali shopping with an eye to the future. A future they are already scripting; one rupee at a time.


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