While spends across health products have improved reflecting an increase of 3 percent from last month, sentiments, however, remain the same as last month for essential consumption.
According to Axis My India’s latest findings of the India Consumer Sentiment Index (CSI), 34 percent of consumers notice in-store promotional offers and 50 percent of them believe it influences their purchase decision.
The December net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +07, from +09 last month reflecting a decrease by 02 points.
The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, and entertainment & tourism trends.
“Consumers have experienced a full circle, starting with restricted spending due to COVID-19, moving on to revenge shopping after the restrictions were relaxed to festive sentiments, and finally to stagnation due to inflation. Whether it is spends on essential/discretionary products or travel and tourism inflation continues to impact these indices of consumer sentiment. This may be one of the factors influencing customers to choose domestic travel over foreign ones,” commented Pradeep Gupta, Chairman and MD, Axis My India.
He further added, “The spending capacity which is elevated basis one's savings is at the moment impacted by increased interest rates. Diverting spends on healthcare is another critical reason. The post-pandemic behavior of investment in health and healthy choices continues to remain a top priority of several households. Finally, even though spending on essential and non-essential appears to reflect lowered sentiments, marketers should note that exploring and experiencing enticing offers from physical stores continues to influence consumer purchase decisions. Therefore marketers should capitalize on this to improve and increase in-store purchases.”
Demystifying the nature of consumers’ engagement with in-store promotional offers, the survey unveils that 34 percent notice promotional offers running in stores, and 50 percent of those who notice these promotional offers indicated that it would influence their final purchase decisions.
Capturing the enthusiasm around the survey discovered that 17 percent would be watching some key matches while 9 percent would be watching all matches. Gauging the preference in terms of viewing medium, the survey revealed that 58 percent would view it on TV, whereas 27 percent and 12 percent will view it on Mobile and OTT platforms respectively.
In an attempt to understand consumer year-end travel plans around holidays, the survey points out that 21 percent would go on a domestic holiday this season, further indicating that 23 percent would base their decision on the cost, while 17 percent would base it on the season and destination. The family decision falls under the third set of considerations when planning for holidays.