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V-Day market in India may cross Rs 22 000 crore ASSOCHAM

Rural spending during the V-day is increased by over 22% than the urban spending (20%) this year.
V-Day market in India may cross Rs 22 000 crore ASSOCHAM

Online retailers and shoppers are likely to earn from sale of Valentine items close to an estimated Rs 22,000 crore with record sales of V-Cards and popular gift articles like flowers, diamond jewellery, chocolates, toys, readymade garments, mobile phones, electronic gadgets and wrist watches , reveals an ASSOCHAM latest assessment.

The spending on Valentine’s Week this year will be 40 percent higher than last year, which was about Rs 16,000 crore in 2014. Owing to the improved economic situation this year and increased spending power of individuals, youths and eligible bachelors are gung-ho about breaking all previous records as they are likely to spend almost over 40 percent as compared to the last year.

This year, the shares of online shoppers (32 percent) are much higher than the last year (20.5 percent) and ready to cash in on Valentine Day’s with record sales of popular gift articles.

In an analysis on `Valentine Day-big business for Shoppers and the Industry’ which has covered the 600 organised retailers and online-shopping companies in this regard, the buying trends during Valentine’s Week have witnessed a significant upward movement due to aggressive online discounts, wider and abundant choice keeping them indoors.

DS Rawat, Secretary General, ASSOCHAM, said, “Valentine’s Day is turning out to be a heavy buying festival with a significant jump over the past four to five years.”

As per the ASSOCHAM findings, about 52 percent of online shoppers surveyed say that they prefer to shop online because online retailers offered better deals. Half the smartphone owners in the group and nearly 18 percent of the tablet owners use those devices to make purchases, adds the survey.

Majority of shoppers said they receive retail deals and promotions on the phones and tablets. Moreover, sending a gift to his/her partner address without any additional costs for delivery is the surprise element in online shopping. As per the findings, the rural spending during the V-day is also increased by over 22 percent than the urban spending (20 percent) this year.

Other reasons for e-shoppers number multiplying are because of factors such as home delivery which saves time, secondly ’24×7′ hours shopping with ease and availability factors for product comparisons, adds the survey.

As per the Flowers and chocolates still remain one of the major gifting options for lovers in the age group of 18-24; whereas, gadgets, watches and expensive jewellery are some of the gifting options preferred by people in the age group of 25 and above, as per the ASSOCHAM reports.

The survey has revealed that big salary youths especially from the MNCs, BPOs, IT and big corporates are planning to spend massively on V-gifts ranges from Rs 1,000 to Rs 50,000 compared to students who are spending no less from Rs 500 to Rs 10,000 this year on valentine day, adds the ASSOCHAM report.

The personal grooming becomes a very important task for people who plan on celebrating the V-Day. Demand for special gift hamper for men that includes branded apparel, sterling silver cufflinks, an exquisite silk tie, a calfskin belt, wallet and a key chain, with a tag of over Rs 12,000 to Rs 15,000 on the rise, adds the paper.

Another survey by ASSOCHAM indicated that in 2014, the consumer spending pattern was observed to be much higher as most people preferred shopping online, as it provided ample gifting options, easy payment modes, and saved their time.

On the lines of gift items corporates, travel houses are also offering special V-Day packages in nearby destinations like Kerala, Goa, Nainital, Mount Abu, Dehradun, Mussoorie, Kasuali, Shimla, Panchvati, etc. ranges from Rs 6,000 to Rs 60,000/- by way of targeting higher paid executives of MNCs, big corporates and services sector, reveals the paper.

Airlines are also not far behind in luring the youths by way of tie-up with reputed travel houses and hotels for the destinations like Bangalore, Hyderabad, Jaipur, Shimla, Mumbai, Goa, Kerala also international holiday packages include popular destinations such as Bangkok and Singapore, highlights the survey. Surveys also show that on average, men’s budgets are more than double than women plan on spending for V-Day.

As per the ASSOCHAM estimates, In 2014, about 40 million consumers purchased something online and number is expected to grow to 65 million by 2015 with better infrastructure in terms of logistics, broadband and Internet-ready devices will be fuelling the demand in e-Commerce.

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