Consumers are concerned as prices of everyday purchases are increasing (71 percent). They are delaying expensive purchases (61 percent) and using credit cards to stretch paychecks (59 percent).
About 87 percent Indian respondents in the age group of 35-54 (working population) are concerned about inflation, according to a report by Deloitte Touche Tohmatsu India LLP (DTTILLP).
However, 77 percent consumers are optimistic that the financial situation will improve within the next three years. 80 percent consumers plan to buy a vehicle in the next six months.
Porus Doctor, Partner and Consumer Industry Leader, DTTILLP, said, “The first three months of 2022 have been an adventurous roller-coaster ride with Indians witnessing the third wave of COVID-19 (Omicron variant), leading to a surge in prices of everyday items, supply chain disruptions, etc. Indian consumers are showing a propensity to save more as the immediate future seems uncertain.”
Besides, some of the key trends that are emerging from the survey include the following:
1. Indian consumers prioritizing shopping, recreational, and entertainment activities
The Indian consumers surveyed are planning to spend a large share of their wallet on personal care and clothing (14 percent), recreation, entertainment, and leisure travel (14 percent), followed by electronics and home furnishings (11 percent), and restaurants (8 percent).
2. Business travel getting back to normal
With corporate India returning to “business as usual” and travel restrictions gradually easing, Indians have resumed their business travels. Eighty three percent consumers are likely to travel for business within the next three months.
3. Consumer recovery and long-term positive sentiments seeing an uptick
77 percent consumers are optimistic about their financial situations within the next three years, as workplaces are opening and COVID-19 cases are decreasing.
4. Indian consumers showing interest in purchasing new vehicles
72 percent respondents are planning to buy a vehicle in the next six months. Of those purchasing a vehicle, 83 percent plan on buying a new vehicle.
5. Indian respondents are actively exploring leisure travel
84 percent plan to spend on leisure travel in the next four weeks. 69 percent Indian respondents feel safe about flying and 71 percent feel safe staying in a hotel.