It is not only the remittances that can bring about a positive change in one’s financial life. Nepali expatriates send money to Nepal from abroad to support their families financially. But, equally crucial alongside international money transfers by the expatriates is the people’s purchasing behaviour.
Here, you will walk through the economy of Nepal and how its expatriates impact purchasing behaviours of their families through remittances. Let’s begin!
About Nepal: the Country and its People
Nepal is located in Southern Asia with a total area of 56,827 square miles or 147,181 square kilometres, and its capital is Kathmandu. According to the estimates of 2021, Nepal has a population of about 30,386,000, with Nepali as its official language. Its currency is called the Nepalese Rupee (NRs). Its population is projected to reach 32,719,000 by 2030. Its population density is 534.7 per square mile and 206.4 per square kilometre.
Nepal’s total population is divided into 19.7% of the urban areas and 80.3% in rural areas.
Let’s now learn the psychological impacts on one’s buying behaviour.
Different Life Situations have a profound impact on one’s Purchasing Behaviour.
If you go to a departmental store for shopping and find the construction design appealing, you will end up purchasing more than you planned. You are more likely to spend time longer than required and thus buy more. Therefore, the designers keep this in mind while working on the layout and designs of such facilities. Nepalese, of course, have the same psychological effects on their buying behaviours when they enter a store built extraordinarily.
To buy various items on visiting such a store, they need enough money which they manage from the remittances. That’s why Nepali expatriates have to often send money to Nepal online using some swift and credible service provider to meet the needs of their families.
The social situation at a given time also shapes buying behaviour.
If you are in the middle of a disruptive social situation, you will avoid going out shopping. But, contrast this with a situation where there is a wave of happiness and smoothness in society. In such a situation, you will go out and instead enjoy shopping.
Nepalese have a generally comfortable environment in the country, and they usually keep going shopping.
Time is of the Essence
In this fast-evolving world, you simply do not have time to waste. It is one of the most significant factors that impact your buying behaviour. Nepalese people are conscious of their time and have tailored their purchasing behaviours accordingly.
Having Valid Reasons for Purchasing
Your buying behaviour will be affected deeply by your reasons for shopping. If you have a valid reason for buying something, you will manage it anyway. But, if you do not have a good reason for buying something and still want to go out, you will land in trouble both financially and monetarily.
Nepalese have average financial strengths. Therefore, they are conscious of their needs and shape their buying behaviours accordingly. Most Nepalese are gradually improving their quality of life through an online money transfer to Nepal from the UK and various other countries that Nepali expats make.
The mood is another critical factor.
Generally, you will not care how much you spend and on what in a good mood. But, with a down attitude, you will not want to go shopping for things you need.
The people of Nepal have a usual mood generally; therefore, they spend their money with care.
Lifestyle is a dominant factor.
Your lifestyle also determines your buying behaviour. If you are rich, you will probably be brand-conscious. But, with an average financial status like most Nepalese, you will focus on fulfilling the needs of your life instead of being conscious of brands.
Let’s now talk briefly about the Nepali expatriates.
Nepali expatriates are spread worldwide.
Nepali expatriates are also known as the Non-Resident-Nepalese (NRNs). They are less in number but spread across the world. Most of these expatriates reside in most of the Gulf States. A recent report said that the Nepalese government had encouraged its people to go to Qatar, where about 350,000 Nepali expatriates are residing.
Most Nepali expatriates live in the Gulf and Arab region. They have been of immense help to their economies through remittances. For instance, when a Nepali expatriate makes an online money transfer to Nepal to help manage their family’s needs, it adds value to the country’s economy overall through increased purchasing behaviours and stimulating sales in various businesses.
Remittances to Nepal and their Impacts on the People
The central bank of Nepal reported that the Nepali expatriates sent in Rs165.73 billion in the last year. Of course, the amount is small compared to the other countries sending in remittances. But, given the size of its expatriates, even this amount supports the Nepalese economy to a reasonable extent.
Since the economy of Nepal is small and the value of its currency is low, the remittances amount to a hefty sum within the economy. And the impact of remittances on the people of Nepal is average. They remain usual with the coming in of remittances and when there is no remittance inflow. These people are not highly wealthy, and whatever amounts they receive as remittances, they invest in savings only.
Does remittance inflow impact the Nepali economy?
A simple answer to this question is yes. Of course, when a family of limited means happens to earn a fair amount of money, their living standards are bound to rise. Besides, the recipients of remittances also save money and, in some cases, start small businesses. Furthermore, they purchase property and then construct houses etc. Similarly, remittances improve the life standards of people which helps boost several business industries indirectly.
These points are put together to have a significant impact on the economy of Nepal. When the construction industry swings into action, it boosts many industries and creates many employment opportunities in an economy, no matter how weak it may be.
It is always admissible to look for a company while transferring funds that offer features that correspond to your needs as an expatriate. These may include speed, low fee, security, best exchange rates etc. And a few companies, including, of course, ACE Money Transfer, have the distinction between offering all of these and many other features under one roof. If you are also a Nepali expat looking to find the best way to send money to Nepal, try ACE’s services which help transfer funds internationally with great convenience.