67% eager to buy new clothes for festivities
· Overall household spending has risen for 60% of families, up by 7% from last month
· 44% of families have increased spending on essential items
· Non-essential product spending has risen for 8% of families
· 37% of households have increased their health-related expenses
· 25% plan to shop more than last year during the festive season
· 82% prefer local stores for festive shopping
Bangalore, 2nd November, 2023: Axis My India, a leading consumer data intelligence company, unveils the latest insights from the India Consumer Sentiment Index (CSI), revealing noteworthy trends in consumer behaviour. The report showcases a diverse range of data, such as a surge in overall household spending for 60% of families, highlighting an uptick of 7% from the previous month. As the glow of Diwali approaches, the festive enthusiasm is palpable, as 25% of the respondents are gearing up to elevate their shopping endeavours during this season. Amid the festive hustle and bustle, a substantial 79% of respondents gravitate towards the timeless charm of cash for their transactions. Fashion seems to be a focal point for many, as an overwhelming 67% of the respondents are eager to rejuvenate their wardrobes in time for the celebrations. In the age of digital commerce, the affinity towards local brick-and-mortar stores stands out, with a large share of respondents indicating a potent sentiment of buying from local enterprises. In the backdrop of Diwali, marked by its iconic sales events and varied shopping experiences, the report’s findings radiate positivity. It suggests a season that promises to be rewarding for both businesses hoping to capitalise on the festive fervour and consumers looking to indulge in their festive shopping sprees.
The November net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +9, which is an increase of +1 from the last 2 months.
The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, entertainment & tourism trends.
The survey used Computer-Aided Telephonic Interviews and included 4,980 participants from 27 states and 5 UTs. Among them, 69% were from rural areas and 31% from urban areas. In terms of regions, 23% were from the North, 25% from the East, 28% from the West, and 23% from the South of India. Among the participants, 65% were male and 35% were female. Looking at the largest groups, 34% were aged between 36 and 50 years old, while 27% were aged between 26 and 35 years old
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, said, “Embracing the festivities, we are observing a retail renaissance in India with the convergence of legacy and innovation. Traditional brick-and-mortar stores are mingling seamlessly with the swift clicks of online shopping carts. This harmonious blend signifies the evolution of Indian retail, where trust meets convenience, and tactile experiences find a parallel in digital exploration. As we kindle the lamps of Diwali in our homes, we are not only celebrating a festival, but also heralding a promising future. A future that deeply respects and upholds our traditions, yet boldly ventures into uncharted realms of commerce and technology.”
· Overall household spending has increased for 60% of the families, which is an increase by 7% from last month. Consumption remains the same for 31% of families. The net score, which was +42 last month, has increased to +51 this month.
· Spends on essentials like personal care & household items have increased for 44% of families, which marks an increase by 1% from last month. Consumption remains the same for 40% of families. The net score, which was at +26 last month, has surged to +27 this month.
· Spends on non-essential & discretionary products like AC, Car, and Refrigerators have increased for 8% of families. Consumption remains the same for 86% of families. The net score, which was +1 last month, is at +3 this month.
· Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 37% of the families, which marks an increase by 1% from last month. Consumption remains the same for 48% of families. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -21 this month.
· Consumption of media (TV, Internet, Radio, etc.) has increased for 20% of families which is the same as last month. The net score, which was -1 last month, also remains the same.
· Mobility has increased for 7% of the families, which is a decrease of 1% from last month. The net score, which was -2 last month, is at -4 this month. Mobility remains the same for 82% of the families.
On topics of current national interest
· The survey delved into consumers’ intentions regarding their shopping preferences during the upcoming festive season. Notably, 25% of the respondents are enthusiastic about shopping more as compared to last year while 23% are committed to sustaining their purchase levels as last year.
· The survey provided insights into household shopping budgets for the forthcoming festivities. A notable 56% of respondents are set to shop a budget of less than Rs 5000, while 24% plan to shop in the range of Rs. 5,000 – Rs. 10,000. Furthermore, 11% of the respondents are looking to spend between Rs. 10,000 – Rs. 20,000, while a combined segment of 7% is gearing up for shopping sprees ranging from Rs. 20,000 to a lavish Rs. 2,00,000. A significant 1% of overall population plan to spend more than Rs. 2,00,000.
· During the auspicious festive occasions, the spectrum of consumer purchases is broad and varied. It encompasses the customary on clothing and apparel but also extends to high-value items. These items range from the latest electronic gadgets, such as mobile phones, to indispensable home appliances, and even luxury investments like vehicles, real estate, and jewellery. A significant majority of 67% of respondents, indicated their intent to shop for clothes/apparel. Furthermore, 13% of the respondents have their eyes on a new mobile phone, while a noteworthy 12% of the respondents are aiming to enhance their homes with appliances such as ACs, TVs, washing machines, refrigerators, and more. 5% plan to buy a 4-wheeler.
· The survey explored the preferences of participants concerning various shopping channels they prefer when purchasing festive items. A significant 82% of respondents voiced a preference for local physical retail stores near home indicating a potent sentiment towards bolstering local enterprises. On another note, 10% of the respondents leaned towards online shopping platforms for their festive acquisitions. Meanwhile, 8% of respondents expressed favour for brand-specific physical stores, highlighting a range of diverse shopping inclinations among consumers.
· Festive shopping popularised by e-commerce platforms has emerged as a significant favourite, especially with the advent of special promotions. These themes have become increasingly popular among consumers. According to the survey, a noteworthy 22% of respondents have expressed their intention to actively participate and make purchases during these e-commerce-led shopping festivals.
· In the vibrant landscape of festive shopping, payment preferences reflected a blend of tradition and modernity. Amid the festive hustle and bustle, a substantial 79% of respondents gravitate towards the timeless charm of cash for their transactions. In a modern twist, 16% of respondents are inclined to embrace digital wallets to settle their festive purchases, while 5% opt for the convenience of debit/credit cards and online banking for transactions.
· Diwali, often hailed as the festival of prosperity and wealth, brings with it the added delight of financial bonuses for many. Employers often mark the occasion by distributing salary bonuses, allowing employees to indulge in the festive spirit with a little extra in their wallets. According to the survey, a notable 19% of respondents have received /are anticipating receiving a salary bonus due to Diwali celebrations.
· In the ICC ODI Cricket World Cup 2023, with the Indian team leading the table over 67% plan to watch the matches. Out of them, 26% of the respondents intend to tune in for the crucial final games of the current season. Meanwhile, 22% of respondents are following matches played by their preferred team, and 19% of respondents are watching almost every game of the season.
· During the ICC ODI Cricket World Cup 2023, various viewing platforms have gained traction among audiences. The survey reveals that a dominant 57% of respondents are catching the action live online mobile streaming platforms such as Hotstar. Traditional cable/DTH television still holds its ground with 49% of respondents tuning in through this medium. Notably, emerging technology isn’t left behind, with 8% of enthusiasts streaming the matches on connected television sets using devices such as Fire Stick TV, Chromecast, and similar platforms.
· During the ICC ODI Cricket World Cup 2023, advertisements played a pivotal role in capturing viewer attention amidst the on-field action. According to the survey, mobile phone brand Oppo made a significant impression, with 16% of respondents recalling their advertisement the most. Close on its heels, 13% each have recognised advertisements from brands like MRF, Thums Up, Pepsi, Coca-Cola, and Havells. Additionally, Dream11, a fantasy sports platform, also managed to engage the audience effectively, with 12% of respondents recalling their promotional content.