Sentiments have improved across 1 out of 5 relevant sub-indices that is, spends across discretionary products. Prompting discretionary spends, 44 percent plans to buy apparel during Dusshera/Diwali while 8 percent each plan to buy white good and mobile phone and 8 percent plan to buy either a 2-wheeler or 4-wheeler.
Axis My India, a consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. The October report further highlights that 81 percent believe that shopping for the family will be the ‘major expense’ during the festivities
The October net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, from +10 last month reflecting a decrease by 2 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 mobility trends.
“Increase in discretionary spends across households demarcates the continuity of festive sentiments. From visiting physical stores to scanning through online sites, consumers are not only investing on household products but are also splurging for themselves and their families. However, one can witness the spending capacity to be conscious as the expenses are mostly on low-budget items such as clothes as compared to heavy ticket items such as vehicles or properties. Cash though continues to be the king, digital modes of payment like UPI & debit/credit card usage is also growing rapidly” commented Pradeep Gupta, Chairman, and MD, Axis My India.
According to the Survey, 21 percent of consumers plan to spend more this festive season as compared to last year. This sentiment has improved by 1 percent point from last month.
81 percent said that shopping for the family will contribute as a ‘major’ expense this festive season. 7 percent said that their major expenses will be parked towards investments.
The survey discovered that 44 percent plan to spend on apparel, while 8 percent each plan to spend on Mobile phones and white goods (such as AC, Washing machines, and Refrigerators), this Festive Season.
In terms of big-ticket items, purse strings are still tight as only 6 percent of consumers plan to spend on jewelry, 5 percent plan to spend on 2-wheeler, 3 percent plan to spend on four-wheelers,s and 1 percent to spend on tractor/commercial vehicle. Also, only 2 percent plan to spend on a home, plot, or commercial property.
It was further revealed that a majority of 78 percent plan to shop from local physical retail stores near their home and 14 percent plan to shop from E-commerce sites like Amazon/ Flipkart this festive season.
As compared to pre-Covid times 43 percent are buying smaller packs or sizes of their monthly groceries.