MUMBAI: Travel and home decor have emerged as the top two important planned expenses, while traditional gifting is expected to take a back seat this festive season amid the pandemic, according to a survey.
Over 56 per cent respondents have listed travel as their top planned expense this festive season as they seek to break out of mundane routine and rejuvenate, while 45 per cent have counted home decor as the second most important expense, as per 2020 InterMiles Festive Consumer Sentiment Index.
As pandemic-induced safety measures and social distancing regulations come into play this year, consumers who are confined to their homes, at least for the near future, seem to optimise levels of comfort and aesthetics in their own nests, it said.
Meanwhile, nearly 48 per cent respondents have listed festive gifting as the third option within their planned expense considerations, taking it to the lowest in their priority list.
The loyalty and rewards programme InterMiles '2020 InterMiles Festive Consumer Sentiment Index' is based on responses received from more than 10,000 InterMilers across India.
The report aimed to cover three core areas of the average Indian consumer's festive spending budget, namely - major planned expenses, shopping, retail and dining preferences.
Further, it revealed that consumers are seeking maximum value for their money through direct methods, as 77 per cent respondents listed great prices, discounts and offers as the most preferred factor when choosing a shopping partner, be it online or offline.
Brands are, thus, putting together deals and discounts like never before, as consumers are keen on ensuring they derive the maximum value out of every spend, it added.
Consumers are also actively seeking out indirect methods to make spends earn for them, with 62 per cent respondents stated that earning loyalty rewards points was the second most preferred factor for them when it came to identifying an appropriate shopping partner for their needs.
This indicates that while consumers are willing to splurge on the festivities, their choices are primarily dictated by options that help them get the most value for their money, it added.
The report further found that online food aggregators are set to have a sparkling festive season, with nearly 81 per cent respondents stating that they would prefer using online food delivery platforms.
About 12 per cent would rather order directly from their local restaurants, and just 6 per cent said they would not order in at all, given the pandemic, it added.
When asked to rank the top three factors that play a role in choosing a restaurant to order online from, safety and hygiene stood out as the topmost factors on the priority list.
This trend has been observed across most service and product categories and stands in contrast to the traditional preference drivers of price points and discounts, the report observed.
Customer ratings, deals, discounts and brand reputability, in that order of priority, also rank high in the consideration set, it added.