New Delhi: This festive season, traditionally a period that sees a surge in Indian consumer spending, could see people being careful with their shopping because of high prices and the economic slowdown, according to a Mood Of The Nation survey conducted by global research firm Ipsos.
More than 75% of those surveyed said they would spend less than Rs.10,000 this festive season because of high inflation. Middle- and lower-middle income families said they would spend less than Rs.5,000 this Diwali. The highlight of the festive season is Diwali, which falls on 13 November this year.
“High inflation and an uncertain economic environment are some of the main reasons for buyers cutting down on spending,” said Biswarup Banerjee, head, marketing communication, Ipsos India. “They are trying to save more to be able to cope with high prices of necessities.”
The top planned purchases for the Indian consumer this festive season are sweets and food, clothes and gifts.
Value for money will be a critical factor when it comes to shopping, Banerjee said.
“Bargain hunting may become the preferred choice for a majority of Indians as higher discounts will be definitely an added incentive for spending on desired items,” Banerjee said.
Last month, financial information company BluFin’s consumer confidence index fell 2.9 points to 36.7, the biggest month-on-month decline since October 2011, reflecting the hit consumer sentiment has taken because of slowing economic growth.
Ipsos’ survey was conducted in September among 420 men and women across Delhi, Mumbai, Kolkata, Chennai, Bangalore and Lucknow.