Indian consumers making wiser life choices: work harder, prioritize well-being, yet save up for the future per Deloitte’s Global State of Consumer Tracker
Deloitte Touche Tohmatsu India LLP (DTTILLP) launched the latest analysis of the survey (Wave 30) on Global State of the Consumer Tracker that shows consumers’ inclination toward savings once again amidst the rising number of COVID-19 cases.
The insights indicate about an 18 percent decrease in both discretionary and non-discretionary spending by Indian consumers. This decrease suggests a change in consumer behavior as consumers prepare themselves for the possibility of financial instability in the future.
Per the recent tracker, consumer perception towards travel has witnessed a fall in the proportion of people willing to fly or stay in hotels. This trend can especially be noticed amongst individuals traveling for business purposes, where the percentage declined by 3 percent since Wave 29.
Interestingly, although a majority of respondents between 18 years and 54 years are willing to save for the future, consumers above 55 years are looking for new opportunities to enjoy life.
The survey shows about a 20 percent increase in money spent on leisure activities by this age group. Additionally, they are spending a major share of wallets on clothing and personal care (15 percent); recreation, entertainment, and leisure travel (14 percent); and mobile/Internet/cable/streaming (5 percent).
Commenting on the latest trends of Global State of Consumer Tracker, Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP, said,
“Inflationary trends, along with rising fuel and commodity prices and a weak rupee, have driven the Indian consumer to become more circumspect and introspective, and focus on prioritizing one’s own well-being (23 percent) and purpose (20 percent) compared with 12 months ago.”
Other key trends emerging from the survey include the following:
1. Focus on introspection, well-being, and purpose
• A year after the second wave, Indian consumers are more inward-focused.
• Sixty-two percent are seeking to drive personal change and 55 percent are trying to figure out new ways to earn more money.
• This change in social perception has led to a change where 49 percent of consumers are now prioritizing their overall well-being and 45 percent are pursuing more purposeful goals in life.
2. Travel safety perception amongst Indian respondents
• Deloitte’s Global Consumer Tracker highlights a drop in the percentage of people willing to fly or stay in hotels.
• A noticeable 3 percent drop in the percentage of individuals traveling for business purposes (from 84 percent in Wave 29 to 81 percent in Wave 30) can be seen.
3. Consumers above 55 years are living their lives
• Per Deloitte’s Global State of Consumer Tracker, Indian consumers above 55 are spending more time and money on enjoying their present time (about a 20 percent increase in both criteria).
• They are spending a major share of their wallet on clothing and personal care (15 percent); recreation, entertainment, and leisure travel (14 percent); and mobile/internet/cable/ streaming (5 percent).
• About 57 percent of respondents from age group 55 and above are looking to spend more time away from home, which is 13 percent greater than Wave 29.