The consumption of both essentials and non-essentials continued to dip, a trend seen in the last three months.
Axis My India, a leading consumer data intelligence company, has released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues.
Commenting on the CSI report, Pradeep Gupta, Chairman &MD, Axis My India, said, “Over time, consumer spending has reached a status quo bias where the keenness to increase consumption has been limited. This is mainly due to inflation and the after-effects of the pandemic which has made it difficult for consumers to see their nominal incomes recover to pre-pandemic levels. While in response to this the government has reduced the petrol and diesel prices, a major chunk of consumers are still looking for further ease. Similarly in media, one can witness respondents suffering from consumption fatigue which could be related to the innumerable choices of content, ease in mobility, and the availability of experiencing ‘cinema’ etc. The craze around IPL persists across platforms but whether this excitement justifies its high media rights, time will tell. Digital viewership is on a high trajectory. In terms of consumer behavior, a significant proportion of consumers are increasingly taking their purchase decision basis reputation of the brand with price as the 2nd key factor, which shows the growing maturity of Indian consumers.”
- Overall household spending has increased for 59 percent of families which reflects a 2 percent dip from the last month. The net score which was at +52 last month has decreased by -2 to +50 this month.
- Spending on essentials like personal care & household items remains the same for 37 percent of the families which is an increase of 4 percent from last month. Spending however has increased for 44 percent of the families, which reflects a dip of 2 percent (i.e. 46 percent) from last month. The net score which was +26 last month has reduced by -1 to +25 this month.
- Spending on non-essential and discretionary products like AC, Car, and Refrigerator remains the same for 88 percent of families, reflecting an increase of 2 percent from last month. Spends however have increased for only 6 percent of families reflecting a light dip of 2 percent from last month. The net score which was at +2 the previous month has dipped to 0 this month.
- Consumption of health-related items more or less remains the same for 51 percent of the families, an increase of 2 percent from last month. Consumption has increased for 35 percent of the families, reflecting a dip of 1 percent from last month. 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 -21, the same as last month.
- Consumption of media remains the same for 62 percent of the respondents, an increase of 4 percent from last month. Consumption has increased for 17 percent of families, marking an overall dip of 3 percent from last month. The overall, net score which was at -2 in the last month is at -3 this month.
- 86 percent said that they are going out the same for short vacations, malls, and restaurants, a dip of 1 percent from last month. Increased travel is reflected only among 7 percent of families, the same as last month. The overall mobility net score is at 0.
On Topics of Current National Interest:
- Gauging consumer’s excitement around the ‘cinema hall experience’ the Consumer Sentiment survey discovered that more than 10 percent have started going to movie theatres/halls for watching new films. However, 90 percent are still apprehensive of the same.
- The survey dug deeper to understand the factors that determine respondents’ purchase considerations. A majority of 57 percent consider the reputation of the brand as an important factor while purchasing from it while 31 percent further consider the price-point as a vital factor. 8 percent said they are dependent on the availability of the product while 4 percent said that they consider advertising and marketing as important influencers in their decision.