Festive season to drive consumer spending: 20% will shop more during 2022 festive season vs 2021, says Axis survey | The Financial Express

Festive season to drive consumer spending: 20% will shop more during 2022 festive season vs 2021, says Axis survey

The survey revealed that 20 per cent of the consumers plan to shop more this festive season in comparison to last year while 32 per cent plan to shop the same as the previous year.

Festive season to drive consumer spending: 20% will shop more during 2022 festive season vs 2021, says Axis survey
48 per cent of consumers tend to shop more during this festive season. Image: Bloomberg

With consumer sentiments improving across key sub-indices like essential and discretionary products and increased mobility, September analysis by Axis My India said that 48 per cent of consumers tend to shop more during the festive season as compared to the rest of the year. It also revealed that 20 per cent of the consumers plan to shop more this festive season in comparison to last year while 32 per cent plan to shop the same as the previous year. The data intelligence company surveyed 10014 people with 68 per cent from rural India and 32 per cent from urban areas. In terms of age of the sample groups, 32 per cent of them were in the age group of 36- 50 years old, while 31 per cent reflect the age group of 26- 35 years. “After compromising past two festive seasons to the pandemic and its related constraints, this year consumers are expected to shop more during festivities,” said Pradeep Gupta, Chairman & MD, Axis My India.

The September net Consumer Sentiment Index (CSI) calculated by percentage increase minus percentage decrease in sentiment, is at +10, from +9 last month reflecting an increase/decrease by 1 point.

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Spending trends across essentials and non-essentials

While the overall household spending increased for 61 per cet of families, same as last month, spending on essentials like personal care & household items has increased for 46 per cent of the families, an increase by 1 per cent from last month. Spends on non-essential and discretionary products like AC, car, refrigerator, etc. has increased for 7 per cent of families, again a per cent increase from last month. Consumption of health-related items increased for 37 per cent of the families which is a per cent decrease from last month; consumption of media remained the same as last month (19 per cent); and mobility increased for 7 per cent of families, an increase of 1 per cent from last month. “Improvement in mobility sentiments highlights the fact that more and more people are enjoying the stores and malls experience of discovering, shopping and gifting,” said Pradeep Gupta. The survey further stated that 10 per cent farmers are planning to purchase new tractors in the coming year while 3 per cent plan to buy within 6 months and 2 per cent within 3 months.

Spending on entertainment & content

Even as media consumption remained the same as last month, how are consumers majorly consuming content? The survey said that in terms of consumers’ engagements with mobile apps, it said that on an average, consumers have 9 apps on their smartphones. Further, a majority of 61 per cent watch online video content like YouTube/OTT. To understand the best medium for advertisements for brands, the survey stated that a majority of 32 per cent notice advertisements on TV, 26 per cent notice it through online mediums, 17 per cent notice ads on social media platforms, 15 per cent on print, 6 per cent on outdoors and mere 2 per cent on radio.

“This is thus a crucial time for the Indian advertising business as spending is expected to bring a lot more returns than usual. As more and more people (61 per cent) are watching online video content (YouTube/OTT) on their mobile/home TV and thereby noticing ads across TV, online and social media platforms, it is of utmost importance for the media industry to tap the right medium for addressing differentiated consumer needs,” Pradeep Gupta added.

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