15 pc Consumers Plan to Buy White Goods This Summer Season as Overall Household Spending Increases by 56 pc

While essential spends increased more for rural segments, non-essential/discretionary spends remained the same as last month. However, with the summer season approaching, a surge in interest in buying white goods in the next few months is expected.

Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI) which reveals that household spending has increased for a majority of families in the country with Andhra Pradesh and Telangana leading the way. The survey also revealed that product quality and brand name are key factors influencing product purchase decisions, with celebrities featuring in advertisements also influencing buying decisions to some extent. The enthusiasm for IPL is expected to increase further, with both TV and mobile contributing to viewership.

The April net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, which is the same as last month. The corresponding net score last year was +11.

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.

“Despite a dip in consumer sentiment last year, the upcoming summer season is expected to see an increase in purchases of white goods such as air conditioners and refrigerators. However, there is still an overall sense of restraint or reduction in sentiment across indices. On a positive note, the younger generation shows promise as per the survey findings, with a slight increase in mobility suggesting a more outgoing nature. Furthermore, with more job opportunities available, this segment remains optimistic about its future. Additionally, with 30 percent of youngsters planning domestic holidays, there is potential for an increase in travel-related sales. These insights provide valuable information for marketers to strategize their efforts by focusing on consumer needs and preferences," commented Pradeep Gupta, Chairman & MD, Axis My India.

Key findings

• Overall household spending has increased for 56 percent of the families, this reflects a decrease of 2 percent from last month and 6 percent from April’22. The net score, which was +51 last month and +53 in April’22 has reduced to +49 this month.
• Spends on essentials like personal care & household items has increased for 33 percent of families, which reflects a dip of 3 percent from last month and 15 percent from April’22. The net score, which was at +23 last month and +29 in April’22, has decreased to +21 this month. Essential spending has increased more for the rural segment (33 percent) as compared to the urban counterparts (31 percent).
• Spends on non-essential & discretionary products like AC, Car, and Refrigerator have increased for 4 percent of families, which is the same as last month and reflects a dip of 9 percent from April’22. The net score, which was at 0 last month, remains the same.
• Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 32 percent of families. This reflects a decrease in consumption by 3 percent from last month and 6 percent from April’22. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -22 this month.
• Consumption of media (TV, Internet, Radio, etc.) has increased for 19 percent of families, which is the same as last month and reflects a dip of 3 percent from April’22. The overall, net score is at 0 this month.
• Mobility has increased for 6 percent of the families, which reflects a decrease of 1 percent from last month and the same as in April’22. The overall mobility net indicator score, which was at 0 last month, is at -1 this month.

On topics of current national interest

• This month Axis My India’s CSI survey highlighted that with summer approaching, 15 percent of those surveyed plan to buy durables like AC or Refrigerators in the next 2-3 months.
• The survey also threw light on consumer travel plans this summer season. Overall 24 percent plan to travel of which 23 percent said they are planning for a domestic holiday while 1 percent are planning for an international vacation.
•  In an attempt to understand product purchase behavior, the survey found that 52 percent consider product quality and 33 percent consider the brand name as an important factor.
• The survey also unveiled that advertisements in which celebrities feature, influence product buying decisions by 30 percent to some extent.
• On employment opportunities, the survey revealed that 50 percent believe that there are more openings/opportunities as compared to the last 10 years.
• Moreover, the survey discovered that among the top professions in the country 25 percent would prefer their children to enroll in the Govt service, 16 percent would prefer them to be in the medical profession while 10 percent would prefer them to work in fields related to Engineering, Computer application, IT.
• The survey further deep-dived to understand citizens’ sentiments towards the 16th edition of the Indian Premier League. 42 percent would watch IPL this season, and out of this 19 percent would watch all the matches whereas 22 percent would only watch matches where their ‘favorite’ teams will play or critical matches like eliminators and finals
• Further investigating sentiments, the study discovered that 57 percent would watch the matches only on cable/DTH Television sets while 30 percent will watch it only on mobile – Jio Cinema. 8 percent said they would watch on both TV and mobile. 3 percent plan to watch the tournament physically from the stadium.