42% families to spend more or same in festive season…

08 Sep,2021

 

By Our Staff

 

Axis My India, the  consumer data intelligence company better known for its exit poll results, has released its August 2021 findings of the India Consumer Sentiment Index, a monthly analysis of consumer perception on a wide range of issues. Given that it’s August, and pre-festive season, we thought it would be appropriate to highlight it.

 

The net CSI score, calculated by subtracting the percentage increase from the percentage decrease in sentiment, was recorded at +6, rising at the fastest pace over the last month, indicative of a positive shift in consumer consumption metrics.

 

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.

 

The surveys was carried out via Computer Aided Telephonic Interviews with a sample size of 10,482 people. As many as 72 per cent of the people surveyed were male and 28 per cent female. The respondents were from 28 states and seven Union Territories.

 

Commenting on the August report, Pradeep Gupta, CMD, Axis My India, said, “As the festive season approaches, consumers are slowly stepping out – as proven by increased numbers for non-essential spending and mobility. This should have a positive effect on the hospitality industry which has been severely affected due to the pandemic. Tourism, however, continues to be a concern as 83% of the respondents are still averse to travelling.  Economic sentiment is looking buoyant with ~64% of the respondents expecting the Sensex to cross 60,000 before the end of this year. Along with the nation-wide vaccination drive, over 96% respondents pledging to adhere to all covid protocols, it is hoped that there will not be a surge in cases post the festive season. A net positive score of an additional 5.5 points over the last month indicates a steady progress towards social and economic normalcy, with this trend expected to improve further in the next few months. Overall, we hold a cautious but optimistic outlook on consumer sentiments. By plugging into economically and culturally significant data-points, the CSI will try to gauge, interpret, and predict the impact of macro factors on the lives of the average India across demography & geographies. Our mission is to bring out the most authentic voices via the rigour of data and analytics”

 

Key findings:

 • Overall household spending has increased for 56% of the families which is an increase of 2 percentage points, the same figure being 54% last month. Increase is highest in North India at 61%. The net score is at +42.

• The spends increase on essentials like personal & household care is at 47%, an increase of 4 percentage point over last month. The net score is +21.

• Spends on non-essential & discretionary products is still cautious with 21% families mentioning an increase but which is still a growth as the same figure was 15% in July. This shows the festive spirit slowing building up with the net score having increased to +9 from -12 last month. Interestingly, the sentiment increase is highest in Rural India.

• Health still remains an important consideration, with consumption on health-related items has increased or remained same for 79% of families and decreased only for 21% families. 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 -24.

• Consumption of media has increased for 25% families & remained same for 47%. The corresponding increase figure was 28% last month. Net score is at -3. The media consumption increase is highest in the 18-25 year old age group at 32%.

• In terms of mobility 93% families saying they are going out the same or less on short vacations/mall/restaurants, with the overall mobility score is at -8 which is an improvement over last month which was at -24.

 

On topics of current national interest:

• When asked will you shop more or less this festive season, 42% of families said they will shop more or same as compared to last year. This gives an indication that there is sense of cautious optimism and the pent-up demand or degree of revenge shopping which happened last year might not be the same this year. This expected increase in spends is higher among private & government service employees.

• 88% of the office going individuals were happy that offices are starting to open and felt that productivity is better from office.

• 83% are not yet looking at a travel/holiday this year and 15% mentioned they would only travel domestically.

• Showing a sign of self-maturity, 96% people said they will implement Covid appropriate behaviour this festive and hopefully this will reduce the level of cases in case the 3rd wave strikes.

• On current euphoria around the Sensex, of those who invest, 64% believe that the BSE Sensex will cross the mark of 60,000 in the next few months with 29% saying it will come down. Additionally, in a true reflection of Indian investor population there is still a vast majority of 74% who don’t invest yet in stock market.

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