Indian shoppers to spend on cars, holidays this festive season: report
2 min read 28 Sep 2022, 07:59 PM ISTConsumers in India intend to buy either a new or used vehicle within the next six months, according to a survey
PremiumNEW DELHI : Indian consumers are likely to to buy more discretionary products during the festive season in what could bode well for consumer goods makers, consulting firm Deloitte said in its latest India specific findings of the Global State of the Consumer survey.
Consumers in India also intend to buy either a new or used vehicle within the next six months, according to findings of the survey.
“Despite concerns over inflation, the planned spending over the next four weeks will see spike across age groups in all categories. Consumers’ intent to purchase clothing (13%), electronic and home furnishing (10%), and recreation, entertainment and leisure (13%), indicates a positive spending pattern triggered by the upcoming festive season. The survey findings clearly indicate that consumers plan to increase their discretionary spend by 30 percent (on items such as recreation and entertainment, restaurants, and leisure travel) in August 2022, compared with April 2022," the survey findings revealed. This is Deloitte’s 34th Global State of the Consumer Tracker.
This will translate into strong sales for consumer products and retail, automotive, travel hospitality sectors, said Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP.
“In the past year, consumers have been unwavering in their priorities – they still feel introspective, and focused on health, well-being, and purpose. Our recent wave 34 tracker indicates that despite the concerns over inflation, Indian consumers are willing to increase their spending during the upcoming festive season. Clearly online purchases remain strong, albeit to a lesser extent than during the peak of the pandemic. Relevant sectors, such as consumer products and retail, automotive, and travel and hospitality, look to benefit from the buoyant mindset of the consumers covered in the survey," Doctor said.
Consumers also reported a strong sentiment towards travel, both in India and overseas.
Meanwhile, the upcoming festivities and sale offers play a key role in propelling the Indian auto industry, which is expected to grow at a high pace in the next six months.
“As on August 2022, 78% Indian consumers surveyed across age groups plan on buying a vehicle in the next six months; of which, 84% plan to buy a new one. The prominent reasons for purchasing a vehicle were high maintenance cost of old vehicles and new features offered in latest models," according to the survey.
Companies are expecting a better festive season after a gap of two years.
Meanwhile, on an average, Indian consumers are not as concerned about their savings and credit card balance as they were six months ago.
“Interestingly, consumers in the 18-34 age group are more concerned about ‘credit card balance’ and ‘amount of money saved’ compared with other age groups, the survey findings revealed. The 18-35 age group showed a greater intent to save money for the future compared with other age groups. This age group also indicated that they would spend more on customer experience," the survey said.
