Consumers now make spending decisions by aspiration, not category

Consumers are increasingly making spending decisions based on aspirations and brand affinity rather than traditional customer segments, said Kaushik Mukherjee, chief technology officer at Super.money. He told ETRetail on 30 September that the company’s research for its Split Store offering showed flexible payment needs cut across segments.

The shift is visible beyond metros. Business Today reported on 30 September that 60% of Open Secret’s sales now come from tier-2 and tier-3 cities, and over two-thirds of Plum Goodness’s business comes from outside the top eight cities. Kapiva co-founder Anuj Sharma said two-thirds of its growth came from tier-3 cities after the brand expanded marketplace presence.

Flipkart Vice President Nishant Dalal said the platform uses pay later and credit card EMIs to help consumers spread payments for aspirational products. Mukherjee added that promotional offers get consumers in but do not build loyalty, the product and experience determine retention.