54% Preferred BNPL As Payment Option For Fashion Purchases: Report
The top Tier I cities driving demand for fashion and beauty are Delhi, Bangalore, Mumbai, Hyderabad, and Pune.
According to ZestMoney, India's largest and fastest-growing Buy Now, Pay Later platform, 72% of respondents spent more on fashion in 2021 than the previous year, indicating a resurgence in consumer spending and demand in the segment.
A consumer survey was carried out to understand better customer shopping behaviour and preferences in the fashion industry. The pan-India study drew 2800 responses, 85% of whom were millennial and Gen Z.
According to the survey, customers in the age group of 18-30 drove the demand for online fashion with 71% of them spending on the category. Also, the average ticket size of women transactions was 20% higher than that of male transactions. Infact, 58% of the respondents said they have spent more than Rs 5,000 on their fashion needs over the last 3 months. About 54% of them surveyed said they would prefer BNPL to finance their fashion purchases. Debit, credit cards and cash were the other popular options.
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% preferring online shopping due to the enhanced convenience and hassle-free experience it provides. However, 76% said they were also comfortable purchasing in person at physical stores
Commenting on the trend, Lizzie Chapman, CEO & Co-Founder ZestMoney said, “Globally, fashion and beauty are the biggest categories for BNPL. 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. Our ‘Pay in 3’ offering that lets customers pay over three months at no interest is highly popular and is driving demand here. 75% of all our fashion/lifestyle transactions are driven by the ‘Pay in 3’ option as it's a great convenience and affordability fit for the category. It also helps merchants with an increase in conversation and ticket size, so a huge win-win for everyone.”
“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% growth in transactions for the category with the merchant base doubling over the last three months. We are adding the largest merchants in the space, especially direct to consumer (D2C) brands who want to enable affordability for their customers. This is a category that will see a lot of action in the coming year too,” added Chapman.
ZestMoney is available at the checkout of leading merchants like Myntra, Nykaa, Purplle, Bombay Shaving Company, Karagiri, Decathlon, Wow Skin, Lotus Herbals, Suta and Re'equil.
The products that were highly popular include sports and casual shoes, fitness bands, fitness wear, leisure wear, nightwear, yoga pants, bathroom slippers, animated fun socks etc.
Premium brands like Apple, Amazfit, Maserati, Tissot, Titan Adidas originals and Emporio Armani also are gaining popularity. In addition to fashion, beauty retailers have seen a 50% month-over-month growth in sales in the last six months on the platform.
ZestMoney's fashion and beauty merchant base is expected to grow by 25X in the coming year. On the beauty side, there has been an increased demand for fragrance-free toners, shampoos, blushes, mascara, fragrance-free toners, shampoos, blushes, and mascaras.
Other noteworthy survey findings include:-
- 73% said they are environmentally conscious and prioritise sustainability while shopping for fashion. This indicates the rising trend of customers making eco-friendly choices and supporting brands that endorse ethical fashion.
- 75% respondents preferred supporting local, home-grown brands over International brands to push made in India
- 88% respondents stated that comfort continues to drive their sense of style and fashion purchases
- Fashion influencers were the go-to for 51% respondents while opting for a particular brand or style
ZestMoney has a registered user base of 13 MN and is available at the checkout of 10,000 online and 75,000 physical stores across the country. The company offers several offers including a ‘Pay in 3’ no cost option for all purchases on the platform.
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