Survey: Indian consumer sentiment during the coronavirus crisis

| Survey
Indian consumers’ optimism continues to remain steady over past three quarters and one of the highest in Asia despite recent inflationary headwinds.

Essential category spend trend has stabilized whereas discretionary spending has seen a continued rising trend since 2020. More than 70 percent consumers are engaging in modified out-of-home behavior with activities such as shopping, entertainment, travel, and social gathering returning to almost normalcy.

Digital continues to hold sway with more than 75 percent consumers using either digital or omnichannel while purchasing across categories. Social media continues to be an important influence while shopping.

Gen Z and millennial are leading in new shopping behavior, with value being the top reason and sustainability as an emerging factor. Overall consumers are observing a general price increase and dual behaviors of splurge and scrimp are observed in certain categories. Although concern on supply shortage is evident in light of energy/ fuel price hike, its not as pervasive as in European and Western markets.

These exhibits are based on survey data collected in India on August 19–26, 2022. Check back for regular updates on Indian consumer sentiments, behaviors, income, spending, and expectations.

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Globally, consumer optimism about economic recovery is second highest in India, behind Indonesia
Indian consumers' overall optimism has stabilized since October 2021
Indian consumers' optimism has declined by about 7 percent in the higher-income segment
Younger and vaccinated consumers also drive optimism
Income and spending have increased by about 10 percent since October 2021; saving has increased by only 6 percent
While about 80 percent of consumers plan on splurging, this intent is moderated among older consumers
Younger consumers intend to splurge on dining out, millenials on apparel, shoes/accessories, and electronics; overall, intent to splurge has fallen since March 2022
Consumers report positive net intent across all categories, with apparel, gasoline, and travel and tourism showing the most change from March 2022
Thirty to 40 percent of consumers attribute increased spend to premiumization; decreased spend is most often attributed to inflation
Spending for groceries has stabilized, whereas discretionary-category spending has been improving over the past two years
Vaccinated respondents plan to increase their discretionary spending more than all other categories of respondents
About 45 percent of Indian consumers say they are engaging in out-of-home activities, across income groups and younger generations
About 70 percent of consumers have modified their behavior when out of home, except in a few categories
About half percent of consumers--except unvaccinated respondents--have changed the way they engage in out-of-home activities
Relevance of social media and omnichannel continues in purchase behavior
More than 75 percent of consumers use omnichannel and online for purchases in most of the categories
Social media influencers purchase decisions for Gen Z, millenials, and Gen X for makeup, skin care products, and jewelry
More than 90 percent of consumers view content on entertainment platforms at least once a week
Consumers most often say they intend to continue using digital banking, grocery delivery, online fitness, social media, and streaming
Consumers have shifted their loyalty and shopping behavior--and intend to continue their new patterns as the COVID-19 crisis subsides
Consumers continue to explore new technology and intend to intensify their usage compared with the pandemic period
Consumers' usage of at-home alternatives to out-of-home activities continues to increase
The highest rates of adopting new shopping behaviors are among Gen Z, millenials, and the middle-income group
About 30 percent of respondents indicated that groceries, personal-care products, and skin care items went out of stock
Customer loyalty continues to be low, with more than 70 percent of consumers who reported stockouts switching retailer or brand
Value was a primary reason for brand switching, followed by quality and sustainability; older consumers also acted on convenience, purpose, and availability
Retailer switching is being driven by value and quality; convenience also is an important criterion
More than 90 percent of respondents observed a price increase driven by the rise in fuel price, which has a cascading effect on purchase of daily essentials
Although respondents were willing to pay the additional premium, for some categories they switched brands or providers
Among those who switched brands, a majority switched to store brands due to value and promotion
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Global surveys of consumer sentiment during the coronavirus crisis

Global surveys of consumer sentiment during the coronavirus crisis

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