The data gathered on credit card spends during the five days of Diwali 2023 in comparison to 2022, provides valuable insights into the shifts in consumer buying behavior along with economic trends observed during the festive season. The notable surge in spending signifies a robust economic outlook and a flourishing consumer market.
Spending Trends:
With Indian consumers now downsizing on debit card usage, Visa’s analysis reveals a remarkable 18 per cent growth in consumer credit card spends during Diwali 2023 highlighting the rising dominance of credit cards in the Indian market during the festive season. This also expands on the translation of festive spirits to economic confidence and a willingness to spend amongst Indian consumers. Notably, ecommerce channels have witnessed a substantial 25 per cent growth in purchase volume, while face-to-face commerce has experienced a 12 per cent growth.
Merchant Category Statistics:
The analysis delves into the dynamics between traditional face-to-face shopping and the burgeoning realm of ecommerce. The following insights highlight the top-performing categories for each channel:
Face-to-face Commerce:
During Diwali 2023, Jewelry Stores, Electronic Stores, and Grocery Stores/Supermarkets emerged as the top categories for face-to-face or in-store commerce/purchases. This underscores the enduring significance of physical retail spaces, particularly for products such as jewelry and electronics.
Ecommerce:
In the realm of online transactions, Apparels and Accessories and Discount Store Merchandise took the centerstage. While there has been a significant growth in the face-to-face commerce segment, leading ecommerce platforms have experienced substantial momentum, specifically during the festive season.
Visa remains committed to fostering a deeper understanding of economic trends and consumer behaviors, contributing to the ongoing discussions on financial resilience and prosperity. These insights from Visa Consulting & Analytics are designed to aid businesses, policymakers, and consumers in making well-informed decisions as they navigate the continually evolving economic landscape.