Seventy-two per cent of respondents in a pan-India survey conducted by Buy Now, Pay Later platform ZestMoney have stated they spent more on fashion in 2021 than the previous year, indicating a resurgence in consumer spending and demand in the segment.
The consumer survey has been carried out to better understand customer shopping behaviour and preferences in the fashion industry noted ZestMoney in an official statement. The pan-India study drew 2800 responses, 85 per cent of whom were millennials and Gen Z.
According to the survey, customers in the age group of 18-30 drove the demand for online fashion with 71 per cent of them spending on the category. Also, the average ticket size of women transactions was 20 per cent higher than that of male transactions.
As per the survey, 58 per cent of the respondents said they have spent more than Rs 5,000 on their fashion needs over the last three months.
About 54 per cent of the surveyed said they would prefer the 'Buy Now Pay Later' method to finance their fashion purchases. Debit, credit cards and cash were the other popular options.
"In India, fashion and lifestyle is emerging as one of the largest categories for us. Consumers love the flexibility and convenience of pay later for their fashion purchases and we expect the category to see increasing adoption," said Lizzie Chapman, CEO and Co-Founder ZestMoney.
"The survey highlights that today's digitally savvy millennial and Gen Z are increasingly taking to Pay later to fund their fashion needs. In fact, we have seen a 100 per cent growth in transactions for the category with the merchant base doubling over the last three months," Chapman added. The firm expects its fashion and beauty merchant base to grow by 25 times in the coming year.
The data collected from the survey dictates that the top Tier I cities driving demand for fashion and beauty are Delhi, Bangalore, Mumbai, Hyderabad, and Pune. Top tier II and III markets fuelling demand included Assam, Anantapur, Haridwar, and Kanchipuram.
E-commerce platforms remained the preferred means of buying for the majority of customers, with 72 per cent preferring online shopping due to the enhanced convenience and hassle-free experience it provides. However, 76 per cent said they were also comfortable purchasing in person at physical stores.
Data indicates the rising trend of customers making eco-friendly choices and supporting brands that endorse ethical fashion as 73 per cent said they are environmentally conscious and prioritise sustainability while shopping for fashion. While 75 per cent respondents preferred supporting local, home-grown brands over International brands to push made in India.
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