New Delhi: With discretionary spending rising this festive season, consumer sentiment has picked up in India, according to a survey. Consumer data intelligence company Axis My India released its India Consumer Sentiment Index (CSI), a monthly analysis of consumer sentiment on various issues.
The October report shows that sentiment has improved in one of the five relevant sub-indices, that is, spending on discretionary products. As a result, 44% planned to buy apparel during Dussehra/Diwali, while 8% each planned to buy white goods and mobile phones and 8% planned to buy a 2-wheeler or 4-wheeler. The survey also said that around 81 per cent believe that shopping for the family will be a ‘major expense’ this festive season.
The net CSI score for October stood at 8 as compared to 10 for the previous month, indicating a decline of 2 points.
Sentiment analysis delves into five relevant sub-indices – overall household spending, spending on essential and non-essential goods, spending on healthcare, media consumption habits and mobility trends.
The survey was conducted among a sample size of 10058 people from 32 states and union territories. About 67% of the respondents were from rural India, while 37% belonged to the urban counterparts. An estimated 61% of the respondents were male, while 39% were female.
Pradeep Gupta, Chairman and Managing Director, Axis My India said, “The rise in discretionary spending in households reflects the continuation of the festive spirit. From visiting physical stores to scanning through online sites, consumers are not only looking for home products but are investing, but also spending money for themselves and their family.However, one can look at spending potential to be mindful as spending is mostly on low budget items such as clothing or heavy ticket items. compared to vehicles or properties. Although cash is king, digital modes of payment such as use of UPI and debit/credit cards are also growing rapidly.”
key findings:
There has been an increase in total household spending for 58% of households, showing a decrease of 3% points from the previous month. The net score which was +53 last month has come down from -4 to +49 this month.
Spending on essentials such as personal care and household items increased for 44% of households, down 2% points from the previous month. The net score which was +29 last month has come down from -3 to +26 this month.
Spending on non-essential and discretionary products like ACs, cars and refrigerators increased for 9% of households, showing a growth of 2% points from the previous month. The net score which was +2 last month has increased to +3 this month. It enhances the consumer sentiment towards the festival.
Health and fitness remain important for consumers during the festive season, with healthcare spending rising for 37% of households. Health score which has negative meaning, the less spend on health items, the better the emotions, its net score value is -22, the net score has increased by +1 from the previous month.
Media consumption remains at the same 19% as in the last two months. Overall, the net score, which was -1 last month, is -3.
Mobility has increased for 6% of households, indicating a decrease of 1% compared to the previous month. The overall Mobility Net Indicator score which was 0% last month has been recorded as -3 this month.
On topics of current national interest:
According to the Axis My India Consumer Sentiment Index survey, 21 per cent of consumers plan to spend more this festive season than last year. The sentiment has improved by 1% over the previous month.
81% said that shopping for the family would contribute as a ‘major’ expenditure this festive season. 7% assist that their principal expenditure will be earmarked for investment.
In an effort to understand the key areas where consumers are expected to spend this Diwali/Dussehra, the survey found that 44% planned to spend on apparel, while 8% each would spend on mobile phones and white goods ( like AC, washing). machine, refrigerator).
In terms of big-ticket goods, purse strings are still tight as only 6% of consumers plan to spend on jewellery, 5% plan to spend on 2-wheelers, 3% on four-wheelers. and plan to spend 1%. Tractors/Commercial Vehicles. Also, plan to spend only 2% on a house/plot/or a commercial property.
The survey further revealed that 78% plan to shop from local physical retail stores near their home and 14% plan to shop from e-commerce sites like Amazon/Flipkart this festive season.
Compared to pre-Covid times, 43% are buying smaller packs/sizes of their monthly groceries
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