Will India Have A Revenge Shopping Spree Too?4 min read
Now it’s been more than a year people have been quarantined, working from home with the same old clothes, perfumes, handbags, with no make-up looks. Consumers seem to have a lot of pent-up emotional demands. Their solution? Revenge shopping.
Although the restrictions had been lifted for a few months, not all the offices or hang-out places were working in full swing.
The term ‘revenge shopping’ means spending excessively after a period when one has had limited opportunities to spend.
Neil Saunders, MD, and Retail Analyst at Global Data Retail, reportedly defined the same as ‘revenge shopping’ which means “that once the pandemic is over, people will go out and spend loads as revenge for being restricted for so long”.
Consumers are seeking ways to compensate for their lost time. Shopping has long been associated with retail therapy, but it appears that customers are retaliating against Covid in the aftermath of the pandemic. They have begun to spend on items that they before were unable to do so.
Revenge shopping is either a celebration of being free or an activity to overcome frustration. Social media has also seen a huge trend of #revengeshopping and #revengespending.
Consumers are likely to make up for lost time by increasing their spending when they go revenge shopping. This may also boost sales of consumer-focused companies and help them keep their businesses afloat.
The idea of revenge shopping has already proven true in China. Last year, the French brand Hermes’ Guangzhou flagship store in China reportedly did $2.7 million in sales on the day it reopened in April. This is the biggest single-day shopping at a luxury outlet in China.
Long queues, fuelled by revenge spending sprees, have been seen outside outlets of brands such as Apple, Nike, Gucci, Estée Lauder and Lancôme, among others, in Chinese cities.
Even now, luxury items and brands in China have seen a huge uptick from eager customers. It’s also spreading in the U.S.
What should I Buy?
During a pandemic, sweatpants and athleisure are the most popular styles, and wearing formals appears to be a pipe dream. However, fashion shops were able to persuade women buyers to dress above the waist for Zoom calls as well.
While the pandemic has physically separated everyone, technology has brought them closer together, with birthdays, anniversaries, and even kitten parties being celebrated online. Women consumers and millennials are “going to shop more” and “update their outfits” now that the lockdown is over, since they want to enjoy being back to normal and spend the money they saved during the lockdown.
Customers were relieved of their pain and worry, while businesses were able to increase their sales as a result of revenge buying. Purchases of children’s toys, learning games, and entertainment subscriptions are up, while day dresses, jewellery, and cosmetics are up in the apparel and fashion industry. However, because of an increase in the profile of online clients, the Coronavirus’s U-turn will not repeat itself. Customers are well-versed in this new way of life, and it no longer comes as a surprise to them.
Let’s Look At What Are Our Desi Folks Doing?
An article in The Economic Times mentioned that India and China are “not apples to apples comparison”.
There were long queues reported outside the luxury stores of many countries but the Indian scenario was different.
As per media reports, Sunil Sethi, Chairman, Fashion Design Council mentioned, “If I think from the head and the heart, my heart says that there should be revenge buying in India and I know the fashion world would welcome this move.”
“But the head says that this will not be the case for India because we as Indians in times of crisis move away from what we would call wasteful expenditure.”
The general trend expected after the lockdown was ‘revenge buying’, but due to loss in jobs and salary cuts, the same may not sustain for a longer time in India.
Nikhil Prasad Ojha, Bain & Company, mentioned that “most shoppers will stick to what they need to buy and hold the urge to splurge for more predictable times”.
Where Will It All End?
Now that the second wave has arrived, and the global economy has been severely hit, the top concern on everyone’s mind is to cut back on unnecessary spending. Staying at home taught customers to keep an eye on their closets and purchase carefully. As a new buying slogan for today’s cautious consumers, shopping will be done extremely carefully, ensuring the necessity, quality, and pricing.
The question to investigate is whether or not consumer behaviour has changed. The Indian consumer has long been known for his savvy bargaining skills, and businesses are gearing up for a future of need-based and cost-conscious shopping.
COVID has changed the way people think about shopping, but as regulations soften, people are enthusiastic about 2021.
However, shopping malls, which have been largely ravaged by the virus, may be the biggest beneficiaries in vengeance shopping. Many malls are reopening at or near capacity, allowing customers the opportunity to shop at multiple establishments in one trip. Customers are eager to see what changes malls have made to add more experiential shopping, and malls are witnessing pent-up demand.
Disclaimer – This content is purely for informational purpose and in no way advice or a recommendation.