Consumer spending expected to be high this festive season 

Mumbai, September 28, 2022: Indian consumers have expressed a strong desire to buy more discretionary products during the festive season. Deloitte’s latest analysis in wave 34 of the Global State of the Consumer Tracker indicates that consumers are willing to increase spend on both travel and hotel stays. They also intend to buy either a new or used vehicle within the next six months.

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 current wave indicates consumers surveyed were willing to travel to domestic(77%) and international flights (66%). 

With ‘mask-lift’ announcements and easing out of other COVID-related restrictions in some countries, about 88 percent Indian consumers plan to spend on leisure travel in the next four weeks.

This trend will continue to see a spike driven by an increased desire amongst elite consumers for cruise experiences in August 2022.

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. The tracker indicates that surveyed consumers’ intent to buy a vehicle grew by 9 percent in the past four months (from 69 percent in April 2022 to 78 percent in August 2022).

As on August 2022, 78 percent Indian consumers surveyed across age groups plan on buying a vehicle in the next six months; of which, 84 percent 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. 

Commenting on the latest trends of the Global State of Consumer
Tracker, Porus Doctor, Partner and Consumer Industry leader, Deloitte
Touche Tohmatsu India LLP, said, “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.”

Other key trends emerging from the survey

Saving trend amongst consumers

• 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 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.  

‘Workaction’ continues to gain traction

• While making leisure travel plans, consumers prefer destinations that are suitable for a work set-up and relatively closer to home or near a major tourist attraction.

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This press release has been issued by Deloitte Touche Tohmatsu India LLP.

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