There was an 18 per cent growth in consumer credit card spends this year compared to Diwali 2022 (Pic: DALL-E)

The festive season of Diwali, traditionally a time of high consumer activity in India, has witnessed an interesting trend in 2023. There was an 18 per cent growth in consumer credit card spends this year compared to Diwali 2022, credit card service corporation Visa said in a report. The latest numbers indicate a reduced reliance on debit cards. This shift is reflective of increased economic confidence and a willingness to spend, as credit cards become more dominant in the Indian market during the festive season.

E-commerce vs. Face-to-Face BuyingA deeper look into the spending patterns reveals that ecommerce channels have experienced a remarkable 25 per cent growth in purchase volume. In contrast, face-to-face commerce, though still significant, has seen a more modest 12 percent growth. This comparison underscores the evolving landscape of consumer shopping preferences, with online shopping gaining a stronger foothold.

Face-to-Face Commerce InsightsWhen focusing on traditional in-store purchases, certain categories have stood out during Diwali 2023. Jewelry Stores, Electronic Stores, and Grocery Stores/Supermarkets have emerged as the top categories for face-to-face commerce. This trend highlights the continued importance of physical retail spaces, especially for high-value items like jewellery and electronics, where consumers prefer a tangible shopping experience.

Ecommerce GrowthOn the flip side, the e-commerce realm has seen Apparels and Accessories, along with Discount Store Merchandise, leading the charge in consumer preferences. This shift suggests that for certain categories, consumers are increasingly comfortable with the convenience and variety offered by online platforms. The significant growth in ecommerce during Diwali 2023 points to a robust momentum for online retail, particularly in the festive season.