Consumers are seen actively spending on cable TV, clothing and footwear, electronics, furnishings, restaurants, among others
With the festive season around the corner and lower Covid-19 cases, Indian consumers are showing lower levels of anxiety, resulting in their willingness to increase spending on more discretionary items, Deloitte’s Global State of the Consumer Tracker report revealed. Consumers are seen actively spending on 12% alcohol, 36% cable TV, 36% clothing and footwear, 33% electronics, 25% furnishings and 22% on restaurants.
The report reflects that the Indian consumer is ready to spend more on discretionary items, feels safe about returning to workplace, wants to spend on travel and is less hesitant about in-person events and activities—all of which are positive trends for India’s economic revival. Only 34% Indian respondents show anxiety while 84% consumers feel safe to return to workplace. Furthermore, 60% consumers have shown willingness to attend in-person events and 59% consumers feel safe taking a flight while 30% consumers show willingness to use public transport. However, the concerns about physical well-being still prevail as 76% of Indian consumers are concerned about their physical well-being and 79% are concerned about the health of their family.
“The easing of Covid-19 related restrictions across the country along with an accelerated vaccination drive has fueled positive consumer sentiments. Our latest survey insights indicate higher levels of consumer spends and a decline in anxiety levels will boost India’s economic revival albeit with a touch of caution,” Porus Doctor, partner and consumer industry leader, Deloitte Touche Tohmatsu India LLP said.
What’s more, reduced anxiety, coupled with several countries lifting travel restrictions for India, the Indian consumer is all set for international travel. 57% Indians surveyed are planning international travel for leisure in the next three months. With several initiatives to allow the movement of passengers between nations like air bubbles, vaccine passports, travel corridors and now Vaccinated Travel Lane (VTL), search inquiries for travel to international destinations, have been on rise, providing a glimmer of hope for the beleaguered travel and hospitality sector.
The report also stated that only 30% of the respondents were concerned about physically interacting with a salesperson, showing increasing customer confidence. Moreover, Indian consumer has transformed to be a socially conscious shopper as 68% respondents would like more locally sourced items and 74% purchased from brands that responded well to the crisis.