Consumer spending on both discretionary and non-discretionary items reduced by about 18%: Report
There has been a 18% decrease in both discretionary and non-discretionary spending by Indian consumers. This decrease suggests a change in consumer behaviour as consumers prepare themselves for possibilities of financial instability in the future, according to Deloitte Touche Tohmatsu India LLP’s latest analysis of the survey (Wave 30) on Global State of the Consumer Tracker. The report highlights consumers’ inclination towards savings once again amidst the rising number of COVID-19 cases.
“Inflationary trends, along with rising fuel and commodity prices and a weak rupee, have driven the Indian consumer to become more circumspect and introspective, and focus on prioritising one’s own well-being (23 percent) and purpose (20 percent) compared with 12 months ago,” Porus Doctor, partner and consumer industry leader, Deloitte Touche Tohmatsu India LLP, said.
Per the recent tracker, consumer perception towards travel has witnessed a fall in the proportion of people willing to fly or stay in hotels. This trend can especially be noticed amongst individuals travelling for business purposes, where the percentage declined by three percent since Wave 29.
Interestingly, although a majority of respondents between 18 years and 54 years are willing to save for the future, consumers above 55 years are looking for new opportunities to enjoy life. The survey shows about 20% increase in money spent on leisure activities by this age group. Additionally, they are spending a major share of wallet on clothing and personal care (15%); recreation, entertainment, and leisure travel (14%); and mobile/Internet/cable/streaming (five percent).
Read Also: Exotel appoints Promod Pillai as VP and head of global partnerships