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Covid-19 pandemic nudged more Indians to save, shift to digital: KPMG survey

More than 85% of the respondents said they are likely to stick to their savings plan with a 10% fall in their income indicating a “saving sentiment”. As many as 70% of the respondents across all age groups were concerned about their future finances against about 49% globally.

Covid-19 pandemic nudged more Indians to save, shift to digital: KPMG survey
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The unpredictability of the novel coronavirus and its debilitating impact on the economy are pushing more Indians to save and consider investing in saving instruments, a recent survey by KPMG showed.

More than 85% of the respondents said they are likely to stick to their savings plan with a 10% fall in their income indicating a “saving sentiment”. As many as 70% of the respondents across all age groups were concerned about their future finances against about 49% globally.

The study surveyed 3,355 respondents, led by consumers in the 17-36 age bracket. About 50% of the younger respondents have started investing more in saving instruments after the Covid-19 outbreak.

Consumers are also increasingly shifting to digital payments. About 49% of the respondents said they are comfortable shopping using digital payment options, compared to nearly 22% globally. In fact, some of them said the absence of a trusted payment gateway would affect their buying decision to a great extent.

“Indians, across all ages have quite easily become conversant with video calling, net banking, online grocery shopping and streaming platforms. This was not a purely urban phenomenon, as the increase in digital sophistication of the older cohort was observed in smaller towns across India as well,” analysts at KPMG said in the survey. A significant 78% of the respondents said mobile phone app availability and smartphone store interactivity should include it as part of their basic offerings. “Compared to pre-Covid, there was a 25% increase in respondents in the silent generation (age 75 and above) from tier-I cities who said that app availability was a very important criterion,” the survey said.

Preference towards buying localised products and services is another trend in the post-pandemic times. About 60% of respondents displayed active participation towards replacing foreign brands with indigenous goods. The tilt has been led by transparent price and product reviews and product composition ingredients.

About 41% of respondents across all age groups are willing to pay a premium for indigenous goods.

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First published on: 25-05-2021 at 02:00 IST