Millennials are changing the way we look at fashion. More than just clothing and appearance, fashion, in the hands of the pandemic has become a source for respite. It has become a source of wanderlust. In order to overcome the growing anxiety due to the extended lockdown, one segment of Gen Y made fashion their armor to reach their aspirational standards. As there was a surge in shopping, there was a surge in loan culture.
In a survey conducted by the Economic Times, one participant said, “…lockdown-related boredom, hysteria, anxiety, uncertainty and the convenience of online shopping from the comfort of one’s home/office are some of the major reasons behind increased spending among millennials” As uncertainty remained a constant during the time, the average shopper turned towards the online channels. When the lives turned upside down and the millennials came face to face with the transient nature of life, fashion became therapy for many. With nowhere else to go and no one to talk to, the Gen Y battled anxiety and boredom through meaningless purchases.
With the significant increase in the loan culture, the Indian millennials are now borrowing more to achieve the lifestyle they have always aspired for. As the pandemic ravaged the income sources and the disposable income dipped rapidly, the millennials who constitute the largest spending generation in the country grew the affinity for short-term loans giving birth to the concept of loan culture. Gen Y is now actively borrowing from FinTech firms to keep up with their aspirations or the pre-pandemic lifestyle. For individuals for whom fashion has always played the role of a therapist, the worldwide pandemic gave a push to their desire of shopping.
Studies conducted by the leading credit sources show the rampant growth in the number of short-term and personal loans in the pandemic. A market survey done by TransUnion Cibil presented the data that showed that millennials are the emerging segment. To quote an excerpt by Economic Times, “This group’s credit appetite is fuelled by their aspirations to firstly, upgrade their lifestyles, secondly, purchase vehicles, and thirdly, provide for their families in case of an emergency.” When the prolonged lockdown took away the little joys, shopping among other things became an outlet for happiness. People started splurging on materialistic things just to give themselves the joy that has been missing from their lives. Deemed as the “aspirational generation”, the millennials are seeking impending comfort in the realms of fashion. They are voluntarily opting to shop for clothing items that they won’t be able to use immediately. The growing anxiety, uncertainty, and boredom is leading to increased shopping. When disposable income has already taken the hit, loans and credits become the only way to reach this aspirational stage.
The significant rise in shopping habits for the Indian consumer has given a notable push to loan culture. There’s a growing tendency for loans and credits that reinforce the purchasing power of this generation. The millennials are now borrowing for futile materials rather than timeless assets. In a post-pandemic world, where we are redefining “normal”, this new segment of millennial shoppers is changing the way we look at loans and fashion.
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