Overall household spending increased for 59% of families: Survey
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 10409 people across 35 states & UT’s.
PremiumAxis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. The July report reveals that the consumption of both essentials & non-essentials continued to dip, a trend seen in the last three months. This month’s survey moreover discloses respondents’ sentiments towards reduced fuel prices and reasons for seeking an early retirement.
The July net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +9, from +10 last month reflecting a very minor decrease by 1 point.
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 & mobility trends.
This month, Axis My India’s Sentiment survey delved deeper to gauge consumer views on petrol and diesel prices, interest on Indian Premier League and eagerness for movie hall experiences. The survey also strived to understand consumer’s thoughts on early retirement and factors that influences brand purchases.
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 10409 people across 35 states & UT’s. 70% belonged to rural India, while 30% belonged to urban areas. In terms of regional spread, 24% of each belonged to Northern and Eastern parts while 29% and 23% belonged to Western and Southern parts of India respectively. In addition, 63% of the respondents were male, while 37% were female. In terms of the two majority sample groups, 28% reflect the age group of 36YO to 50YO, while 21% reflect the age group of 26YO to 35YO.
Pradeep Gupta, chairman & MD, Axis My India, said, “Overtime, consumer spending has reached a status quo bias where the keenness to increase consumption has been limited. This is mainly due to inflation and the after effects of pandemic which has made it difficult for consumers to see their nominal incomes recover to pre-pandemic levels. While in response to this the government has reduced the petrol and diesel prices, a major chunk of consumers are still looking for further ease. Similarly in media, one can witness respondents suffering from consumption fatigue which could be related to innumerable choice of content, ease in mobility and the availability of experiencing ‘cinema’ etc. The craze around IPL persists across platforms but whether this excitement justifies its high media rights, time will tell. Digital viewership is on a high trajectory. In terms of consumption behaviour, a significant proportion of consumers are increasingly taking their purchase decision basis reputation of the brand with price as the 2nd key factor, which shows the growing maturity of Indian consumers."
Key findings:
Overall household spending has increased for 59% of families, however, reflects a 2% dip from the last month. Basically, in July’22, the overall household spending had increased for 59% of families which reflects a 2% dip from the last month, net score +50. This is because in June’22 the overall household spending had increased for 61% families, net score +52 and in May’22 the overall household spending had increased for 66% of families, net score +58. Hence, overall household spending now reflect maximum dip in the last three months (May, June, July).
Spends on essentials like personal care & household items remain the same for 37% of the families which is an increase by 4% from last month. Spending however has increased for 44% of the families, which reflects a dip by 2% (i.e. 46%) from last month. The net score which was +26 last month has reduced by -1 to +25 this month.
Spends on non-essential & discretionary products like AC, Car, and Refrigerator remains the same for 88% of families, reflecting an increase of 2% from last month. Spends however has increased for only 6% of families reflecting a slight dip of 2% from last month. The net score which was at +2 the previous month has dipped to 0 this month.
Consumption of health-related items more or less remains the same for 51% of the families, an increase by 2% from last month. Consumption has increased for 35% of the families, reflecting a dip by 1% from last month. 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, same as last month.
Consumption of media remains the same for 62% of the respondents, an increase by 4% from last month. Consumption has increased for 17% of families, marking an overall dip by 3% from last month. The overall, net score which was at -2 in the last month is at -3 this month.
86% said that they are going out the same for short vacations, malls and restaurants, a dip by 1% from last month. Increased travel is reflected only among 7% of families, same as last month. The overall mobility net score is at 0.
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