In debt to fashion

The Indian retail industry contributes more than 10 percent to the country’s gross domestic product (GDP). A new study looks at how impulsive and non-rational consumer behaviour in the Indian clothing sector potentially leading to personal debt can have a detrimental effect on the economy as a whole. Moreover, the work points to how promoting more rational purchasing decisions could be better for consumers as well as leading to a more sustainable and responsible industry.

Of course, marketers work to promote products and they will use emotional means to do so that will often trigger a non-rational response from a would-be customer. Conversely, who, in a free society, is to tell a customer what they do and don’t need when it comes to clothes shopping. After all, people buy clothes for obvious practical reasons, but also for self-expression, for enjoyment, and many other non-practical reasons.

Komal Malik and Manoj Joshi of the Amity Business School at Amity University Uttar Pradesh, Lucknow Campus, used an experiential research design to survey and capture non-rational behaviour shopping behaviour among Indian consumers. “Non-rationality can be referred as the influence of emotional factors rather than tangible gains and losses associated with a choice,” the authors write. In addition, in their paper in the International Journal of Business and Globalisation, they reviewed the existing literature to provide context. The team’s analysis considered factors such as brand loyalty, gift and special occasion purchases, social affinity, lifestyle choice, the feel-good factor, offers and discounts, changing fashion, personality.

The researchers found that consumer behaviour was driven by rational as well as non-rational factors, but it was the latter, associated with impulse purchases that was often associated with consumers spending on credit. If such consumers do not have the funds or disposable income to back their purchases then repeated impulse buys, has the potential to lead to greater debt. Understanding and addressing this behaviour is crucial for both marketers and policymakers, the research suggests.

Malik, K. and Joshi, M. (2023) ‘I saw it, I bought it! The irrational buying behaviour in retail sector’, Int. J. Business and Globalisation, Vol. 34, No. 1, pp.17–27.