7 Things The Enlightened Consumer Is Willing to Buy On Credit
Ever-changing market trends provide newer paths for earning and spending money. An economy survives upon the cumulative credit and debt habits of the average consumer. Over the last decade, as the so-called millennials have grown to occupy more space in the economy, spending habits or trends have undergone a massive change. The consumer internet boom has also a major role to play in this change. Several surveys have shed some light on the online shopping habits of the consumer. The majority of the online shoppers fall between the 12-35 years of age range and the lion’s share of the online shopping is done by the age group 16-23. This particular age group’s spending habits are defining the online shopping culture. A significant portion of these shoppers are nightwalkers that spend their night hours surfing through various online shopping portals.
“I browse at least a couple of shopping portals every night before going to sleep,” confesses 23 years old Mahi. The ease of access to the internet and an adequate disposable income help shoppers like Mahi in becoming regular and repetitive buyers. And, the various payment modes offered by these online shopping portals provide flexibility of payment to their buyers.
28 years old, Social Media Manager, Akruti is typical. She says, “I keep switching between CoD (Cash on delivery) and card (debit and credit cards) payments. It allows me to manage my finances well. When I am short of cash, I make a purchase using my debit card and when I don’t have enough balance in my account to make a particular purchase or if I feel the need to buy something on installments (EMIs), I opt for credit payment.”
That apart, consumer these days don’t shy away from making bigger purchases only due to cash constraint. An array of credit options provide them with greater financial flexibility. The credit market has evolved over the years. Compared to the options available earlier, these days the credit market has an attractive option to cater to every kind of consumer need. The changing trends have made markets as well as consumers more willing and open to the idea of credit and this is reflected in what people are willing to take credit for. Here are 7 things that today’s more financially enlightened consumers are willing to take a loan for:
1. High-end Mobile Phones
The most frequently bought gadget on EMIs is high-end mobile phones. The ever-increasing prices and constraint of availability of cash in hand makes consumers opt for the credit option. Buying a phone on EMI was unimaginable a few years ago but now it is almost the norm in the market.
2. Gold and Other Precious Jewelry
Gold has always been seen as an investment by the middle-class Indian consumers. Making an investment on credit seemed unfathomable to the previous generation. But, for a generation that buys jewellery to flaunt it, buying gold or other precious jewellery items with credit is no longer a no-no.
3. High-end Branded Clothes
After 3 decades of liberalization and the opening of the Indian markets to foreign brands, India has become a booming market for international icons like Zara, Adidas, Nike, Mango, Tommy Hilfiger et al. Today’s consumers are more focussed on maintaining their lifestyle and don’t bat an eyelid before opting for high-end branded clothing. If that means converting a purchase into an EMI on the credit card or taking a personal loan to refurbish the entire wardrobe – then so be it.
4. Foreign Trips
Vacations and holiday trips were always a luxury but not anymore. The consumer these days don’t want to wait for their retirement to see the world. When the Northern Lights beckon or when Africa calls it’s time to go – even if it means a availing of that “pre-approved personal loan” the bank is offering. The credit option makes such luxuriously leisure trips more accessible.
5. Home & Kitchen Appliances
Buying electronic items on credit is no longer unusual. So much so that many consumer electronics giants have finance companies of their own now to fund the purchases their customers make. The consumer doesn’t need to shell out a huge amount of money at one go to own household necessities such as a smart TV, washing machine, refrigerator, air fryer etc. No longer does one need to wait to have adequate cash in hand or balance in their accounts to make such purchases.
6. Gadgets and Gizmos
In this technologically driven era, there is an ocean of technological gadgets and gizmos available in the market. The lives of the millennials are dependent upon these technological devices and owning them is not cheap. As these devices are becoming more and more of a necessity than luxury, the consumers are becoming more open to the idea of making a credit purchase for the same.
7. Kids’ Tuition / Course Fees
Parents don’t want to compromise on their kids’ education and career in any way. The previous generation believed in affordable schooling but this generation wants even more for their kids. And, it is just not about education. Parents are willing to enroll their kids in various sports activities and special classes as compared to their predecessors. They encourage their kids to dream big and are unwilling to let their immediate cash flow come in the way of those dreams. “My daughter has been selected for state-level tennis championship and I have taken a loan to fund her training for the tournament,” tells Nitish, father of a 14 years old Kritika who will be representing her school at the state-level this year.
Norman Ralph Augustine is reported to have said, “It’s easy to get a loan unless you need it.” Presumably, those days were different where loans were made against very specific requirements and to a very select group of consumers. Today loans are much more accessible, even for things you may consider unusual!
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