Indian household spending is expected to rise for 53 per cent of families surveyed by Axis My India, though it highlighted a nuanced 2 per cent dip from the last month. Axis My India is a consumer intelligence company which unveiled the insights from the India Consumer Sentiment Index (CSI), revealing the key trends in consumer behaviour. Additionally, it said that the festive spirit seems to be in a full swing with 55 per cent of respondents planning to prioritize spending on festive delights, from food and groceries to clothing and accessories.
According to the survey, spending on essentials like personal care & household items have increased for 43 per cent of families, which marks an increase by 2 per cent from last month. Spends on non-essential & discretionary products like AC, car, and refrigerators have increased for 9 per cent of families, which reflects a spike from last month by 3 per cent. Expenses towards health-related items such as vitamins, tests, and healthy food, it said, has surged for 36 per cent of the families. This reflects an increase in consumption by 2 per cent from last month. Consumption of media (TV, Internet, Radio, etc.) has increased for 20 per cent of families, depicting a slight increase in media consumption percentage by 1 per cent from last month. Mobility has increased for 8 per cent of the families, which is a dip by 1 per cent from last month.
Further, it added that 43 per cent of shoppers spotlight product quality as their foremost consideration, indicating a discerning and quality-conscious consumer base. The report also stated that 56 per cent consumers are prioritising local vendors for festive shopping, echoing the ‘vocal for local’ ethos.
The October net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, which is the same as compared to the last 2 months, the report said. The sentiment analysis, Axis My India said, delves into five relevant sub-indices – overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, entertainment & tourism trends.
The survey used computer-aided telephonic interviews and included 5452 participants from 35 states and UTs. Among them, 66 per cent were from rural areas and 34 per cent from urban areas. In terms of regions, 32 per cent were from the North, 20 per cent from the East, 39 per cent from the West, and 9 per cent from the South of India. Among the participants, 64 per cent were male and 36 per cent were female. Looking at the largest groups, 29 per cent were aged between 36 and 50 years old, while 28 per cent were aged between 26 and 35 years old.
Pradeep Gupta, Chairman & MD, Axis My India, said, “As we navigate through this festive season, consumers are showcasing a harmonious blend of traditional values and modern preferences. As we enter this festive season, it is evident that quality and local sourcing remain paramount, yet the digital realm is undeniably shaping purchasing decisions. Brands that understand this synergy and can cater to both aspects will undoubtedly thrive.”
“Furthermore, the survey insights reveal an undying commitment to supporting local businesses, echoing the spirit of self-reliance and the ‘vocal for local’ ethos. The commitment to local vendors and businesses emphasizes a deep-rooted sense of community and reflects a collective effort to foster and support local ecosystems. We see a conscientious shift towards responsible consumerism, where the emphasis is equally on the source as it is on the quality of the purchase. The consumer today is informed, engaged, and values-centric, shaping a transformative era in retail that is rich in trust, quality, digital savviness, and a deeply rooted community spirit,” he added.
Per the findings of the survey, a prominent 43 per cent of the respondents indicated that product quality is the primary factor guiding their buying choices during the festive period. Meanwhile, 21 per cent of respondents mentioned that discounts and promotions substantially sway their purchasing decisions during these times. On the other hand, 16 per cent of respondents recognized personal preferences as the leading factor in their festive buying choices.
On the different shopping channels, a significant 56 per cent of respondents expressed a preference for local markets and vendors. Interestingly, a modest 36 per cent of respondents showed a preference for in-branded physical stores for their festive shopping. Meanwhile, 8 per cent of respondents favoured e-commerce platforms for their festive purchases.