New Delhi: Consumers in India have shown consistent improvement in their purchases of essential and discretionary products, according to the monthly India Consumer Sentiment Index (CSI) survey by Axis My India.
Total household spending increased by 4% month-on-month for 66% of households in April.
May net CSI Score last month was from 11 to 12; It has been on an upward trajectory over the past four months. The index merges five relevant sub-indices- overall household spending, spending on essential and non-essential goods, spending on healthcare, media consumption habits and mobility trends.
Meanwhile, spending on essentials like personal care and household products increased for 48% of households, while it remained the same for the remaining 33% of households in the previous month.
The survey findings showed that there was a minimal increase in the consumption of media and healthcare products during the month and a marginal improvement in the sentiments associated with mobility.
Spending on non-essential and discretionary products such as air conditioners, cars and refrigerators for 14% of households shows a growth of 1% from the previous month. Yet the expenditure remained the same for 80% of the households.
The survey findings showed that there has been an increase in the consumption of healthcare items for 38% of the households.
85% of households said they were taking short holidays, and going to malls and restaurants. Increased travel is seen in only 8% of households.
The survey had a sample size of 10,166 people from 30 states and union territories. Of those surveyed, 69% were from rural India, while 31% were from urban markets. In addition, 68% of the respondents were male, while 32% were female.
“The evolving and re-energizing consumer community reflects optimism towards increased spending in discretionary spending, reflecting their affinity for ‘what they want rather than what they want.’ Provides a ray to tap towards. While brands are striving to capture the instant gratification trend of consumers, there is a need to understand the context and content to capture the right eye,” said Axis My India’s Chairman and MD Pradeep Gupta said.