The upcoming festive season this year is expected to post a growth in people spending as compared to the previous year. According to the latest insights from the India Consumer Sentiment Index (CSI) by Axis My India, 23 per cent of respondents are anticipating increased shopping activities during the upcoming festive season, reflecting a positive sentiment towards holiday spending. Additionally, it said that 44 per cent of those intending to maintain their pattern of participation in e-commerce festive sales this year plan to spend more than last year. However, it maintained that the overall household spending increased for 55 per cent, which showcased a 3 per cent decrease from last month.
“The September net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, which is the same as last month (+8). However, the score reflects a dip of -2 from last year September 2022 (+10),” the report said.
The survey used Computer-Aided Telephonic Interviews and included 5048 participants from 35 states and UTs. Among them, 68 per cent were from rural areas and 32 per cent from urban areas. In terms of regions, 22 per cent were from the North, 24 per cent from the East, 28 per cent from the West, and 26 per cent from the South of India. Among the participants, 62 per cent were male and 38 per cent were female.
The survey explored respondents’ prior and potential involvement in festive sales organized by e-commerce giants like Amazon and Flipkart. It said that a notable 23 per cent of participants confirmed their past participation in such events and expressed their intent to maintain this pattern this year as well. Additionally, 11% of those who had not engaged in festive online sales before expressed their interest in participating this year. Conversely, 7% acknowledged their previous engagement but revealed their decision not to partake this year. Of 23 per cent of those who intend to maintain the pattern this year, 44 per cent said they will be shopping more through e-commerce mediums as compared to last year.
In terms of sentiment analysis for different sub-indices, spending on essentials like personal care and household items have increased for 41 per cent of families which marks a decrease by 3 per cent from last month. Spending on non-essential & discretionary products like AC, car, and refrigerators have increased for 6 per cent of families, which is the same as last month. Consumption remains the same for 87 per cent of families. Meanwhile, it said that expenses towards health-related items such as vitamins, tests, and healthy food has surged for 34 per cent of the families. This reflects an increase in consumption by 1 per cent from last month. Consumption of media (TV, Internet, Radio, etc.) has increased for 19 per cent of families, depicting a decrease in media consumption percentage by 1 per cent from last month. “The net score, which was -7 last month is at -4 this month. Media consumption remains the same for 58% of families,” Axis My India said. Mobility, however, has increased for 9 per cent of the families, which is an increase by 2 per cent from last month.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, said, “As we approach the festive season, our insights paint an encouraging picture for the retail landscape. E-commerce continues to play a pivotal role, with an increasing interest in festive online sales. This evolving trend suggests a promising market dynamic. As consumer preferences shape the retail arena, we anticipate a vibrant festive shopping spree ahead, reflecting a positive and forward-looking trend.”
In terms of inclination towards investment in the Indian stock market or other financial assets in the upcoming months, 6 per cent expressed an intention to invest more, while 10 per cent indicated plans to invest less. Meanwhile, 5 per cent are projected to maintain their investment levels.
The survey also inquired about participants’ perceptions regarding the potential movement of the stock exchange (SENSEX) beyond the threshold of 70,000 before the festive period of Dussherra/ Diwali this year. 46 per cent of respondents who invested expressed optimism that such a milestone could be achieved. Furthermore, 8 per cent were uncertain about the market’s trajectory.