Indian consumers making wiser life choices has been saved
Indian consumers making wiser life choices
Work harder, prioritise well-being, yet save up for future per Deloitte’s Global State of Consumer Tracker
- The overall results of the survey indicate no change in higher inflation sentiment from Wave 29. The young population surveyed (age group 18-34) expressed an increased concern around inflation, which has risen by 5 percent from Wave 29.
- Consumer spending on both discretionary and non-discretionary items reduced by about 18 percent amongst survey respondents.
- Consumers above 55 years display a positive outlook towards life with 57 percent respondents willing to spend more money on enjoying life despite a downward shift in consumer behaviour.
- The tracker shows a 2 percent decline in the percentage of respondents seeking in-person experiences, whereas those expressing social distrust has risen by 3 percent.
National, 01 June 2022: Deloitte Touche Tohmatsu India LLP (DTTILLP) launched the latest analysis of the survey (Wave 30) on Global State of the Consumer Tracker that shows consumers’ inclination towards savings once again amidst the rising number of COVID-19 cases.
The insights indicate about 18 percent decrease in both discretionary and non-discretionary spending by Indian consumers. This decrease suggests a change in consumer behaviour as consumers prepare themselves for possibilities of financial instability in the future.
Per the recent tracker, consumer perception towards travel has witnessed a fall in the proportion of people willing to fly or stay in hotels. This trend can especially be noticed amongst individuals travelling for business purposes, where the percentage declined by 3 percent since Wave 29.
Interestingly, although a majority of respondents between 18 years and 54 years are willing to save for the future, consumers above 55 years are looking for new opportunities to enjoy life.
The survey shows about 20 percent increase in money spent on leisure activities by this age group. Additionally, they are spending a major share of wallet on clothing and personal care (15 percent); recreation, entertainment, and leisure travel (14 percent); and mobile/Internet/cable/streaming (5 percent).
Commenting on the latest trends of Global State of Consumer Tracker, Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP, said,
“Inflationary trends, along with rising fuel and commodity prices and a weak rupee, have driven the Indian consumer to become more circumspect and introspective, and focus on prioritising one’s own well-being (23 percent) and purpose (20 percent) compared with 12 months ago.”
Other key trends emerging from the survey include the following:
1. Focus on introspection, well-being, and purpose
- A year after the second wave, Indian consumers are more inward focused. Sixty-two percent are seeking to drive personal change and 55 percent are trying to figure out new ways to earn more money.
- This change in social perception has led to a change where 49 percent consumers are now prioritising their overall well-being and 45 percent are pursuing more purposeful goals in life.
2. Travel safety perception amongst Indian respondents
- Deloitte’s Global Consumer Tracker highlights a drop in percentage of people willing to fly or stay in hotels.
- A noticeable 3 percent drop in percentage of individuals travelling for business purposes (from 84 percent in Wave 29 to 81 percent in Wave 30) can be seen.
3. Consumers above 55 years are living their lives
- Per Deloitte’s Global State of Consumer Tracker, Indian consumers above 55 are spending more time and money on enjoying their present time (about 20 percent increase in both the criteria).
- They are spending a major share of wallet on clothing and personal care (15 percent); recreation, entertainment, and leisure travel (14 percent); and mobile/internet/cable/ streaming (5 percent).
- About 57 percent respondents from age group 55 and above are looking to spend more time away from home, which is 13 percent greater than Wave 29.
This press release has been issued by Deloitte Touche Tohmatsu India LLP.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.