‘60% of Indian households are ready to spend during festivals’
As consumer sentiments improve, 3 in 5 households said they will spend on shopping in the festival season
After a harrowing April-May, when the second covid-19 wave wreaked havoc, Indian consumers have found their mojo back in the run-up to the festivals.
According to a survey by community social media platform LocalCircles, consumer sentiment improved 100% over the past four months, with three in five Indian households expressing their intent to splurge during the festivals.
Around 60% of households surveyed in September said they were set to loosen their purse strings this festive season, up from just 30% in May, when LocalCircles asked participants if they were willing to make discretionary purchases in the next 12 months, as part of its Mood of the Consumer survey.
LocalCircles received over 115,000 responses from over 38,000 households across 396 districts, comprising 63% male and 37% female participants. While 44% were from metros and tier-1 cities, 31% were from tier-2 districts, and 25% were from tier-3, tier-4 and rural areas.
Traditionally, Indian consumers have had the propensity to make big-ticket purchases during the festivities in October and November.
During Durga Puja, Dussehra and Diwali, people go on a buying spree, splurging on clothes, home décor and gifts.
The decline in new covid cases across India and easing mobility restrictions are expected to help many categories, including smartphones, consumer electronics, and fashion and beauty, to do well during the festivals, LocalCircles said.
The fact that at least 60% of households are planning to spend indicates that the economic uncertainty prevailing in May during the pandemic’s peak has reduced, it said.
In its August survey, the company had said that 59% of the respondents were likely to visit a family member during the festive period of September and October.
The latest findings show that gifting is likely to be strong, with almost half the survey participants (48%) likely to order online and 42% saying they will buy them locally.
Yet, considering the ongoing pandemic, consumers will be cautious about the “budget” and “safety” while shopping.
Prolonged lockdowns have changed consumer habits who took to shopping online in a big way.
Many started using digital payments in lieu of cash due to the fear of infection and took “no-contact” deliveries.
So, when asked how households will shop this festive season on an aggregate basis, 52% said they would order online or get home delivery via local stores.
Also, the pandemic impacted household incomes triggered by job losses and salary cuts.
Asked about the most important shopping criteria, 35% of the participants said it would be “budget/value”, and 35% said “safety”.
In fact, 49% of the respondents said they would only shop where they get value.
Among product categories, 55% of those making big-ticket purchases this festive season are likely to spend on smartphones and consumer electronics, the LocalCircles survey found.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:1 Oct 2021, 01:10 AM IST
- Top Gainers
- Top Losers
- 52 Week High