Consumers In Tier-2 and Tier-3 Cities Prefer E-Payments:KPMG Reports

‘Time to open my wallet or not?’ is the title of the report released by KPMG and covering the new spending patterns emerging from a consumer’s perspective. It aims to highlight gradual key changes that we are witnessing in the overall Indian consumer sentiment given the new normal.

KPMG report claims that “Tier -2 and tier-3 city consumers are more inclined towards contactless payment”.

The life of Indian citizens has changed a lot due to this COVID-19 pandemic and it has also acted as a game-changer for the consumer market sector. Consequently, COVID-19 has given an abundance of new opportunities for retailers in India. As a result of the pandemic, consumer sentiments have been under the spectrum due to their evolving mindsets. Consumers are more aware than ever and have been reevaluating their priorities as the new reality sets in. The survey brings out the changes that have been observed among Indian consumers in the new normal. It highlights that a new consumer is emerging — one that is financially constrained, more advanced in their use of digital technologies, more thoughtful and selective in their decision-making, and keen to see COVID-19 as an opportunity to reset values.

The survey has been conducted with 2,376 respondents out of which 66 percent were male and 34 percent female. It was conducted across tier-1, tier-2, and tier-3 cities, amongst different spender types and age groups, between May 18, 2020, to June 7, 2020. The report highlighted various points like consumer spending habits, optimism for future, favorable discretionary spending among consumers, incentivization across physical stores and heading towards a cashless economy, etc. we came across various perceptions of people in a different tier.