The Indian consumer spends to “live in the moment”, despite inflation blues: Deloitte’s Global State of Consumer Tracker has been saved
The Indian consumer spends to “live in the moment”, despite inflation blues: Deloitte’s Global State of Consumer Tracker
- Inflationary concerns observed across the globe in South Africa (86 percent), Spain (85 percent), Poland (84 percent), Brazil (80 percent), India (74 percent), Canada (74 percent), UK (72 percent), US (71 percent). However, 77 percent Indian consumers are optimistic that their financial situation is likely to improve within the next three years
- 85 percent Indians plan to spend on leisure travel in the next four weeks
- 50 percent Indians are spending more on experience
- 74 percent Indians plan to buy a vehicle in the next 6 month
22 November 2021 – Deloitte Touche Tohmatsu India LLP (DTTILLP) unveiled wave 24, the latest analysis of its Global State of the Consumer Tracker, indicating that despite inflation, consumers are prioritising personal care and well-being as the world gradually adjusts itself to a life after the pandemic. After spending over a year and a half within the confines of their homes, Indian consumers are now living in the moment and indulging in luxury and experience-oriented spending.
Our latest findings reflect that despite global inflationary concerns, Indians are looking forward to now having a balanced life, where they are not only focused on saving for the future (58 percent) but also want to spend for experiences and goods / physical possessions (50 percent each). While 74 percent Indian respondents are concerned about inflation, at the same time, 85 percent Indian respondents plan to spend on leisure travel in the next 4 weeks, 71 percent Indian respondents feel safe engaging with one-on-one services and 68 percent Indian respondents feel safe going to a restaurant.
The following survey responses indicate how Indians are spending to live for the moment:
- 74 percent consumers planning to buy a vehicle in the next six months
- 85 percent consumers plan to spend on leisure travel in the next four weeks
- 50 percent respondents are spending more on experiences than on goods
- 65 percent consumers feel safe to take a flight and staying in a hotel
Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP said, “Conscious yet meaningful consumption is being celebrated by Indians, as they look forward to ‘experience’ the present rather than living it virtually. This has also created a sense of purpose in them and they look forward to engaging with brands and platforms that reflect their personal values and are in line with their evolving tastes.”
Key trends emerging from the survey include the following:
1. India prioritising personal care and well-being
Most of the Indian consumers are planning to spend the most from their share of wallet on personal care and clothing (14 percent) along with recreation, entertainment & leisure travel (14 percent) followed by electronics & home furnishings (11 percent). Robust vaccination drives and an uptick in positive sentiments are the primary reasons for this shift. Several brands are offering a wide range of beauty and personal care products through e-commerce platforms. In addition, rapid urbanisation, easy internet access, and high smartphone penetration are catalysing the demand for these products across India.
2. Business travel gaining momentum
With easing travel restrictions and the opening-up of workplaces, Indians are gearing up to resume their business travels. Sixty-nine percent consumers are likely to travel for business within the next three months. With improving sentiments, resurgence of economic activities and a growing sense of positivity and normalcy, executives have gradually resumed business-critical travel.
3. Consumer recovery and positive sentiments are seeing an uprise
• 77 percent consumers are optimistic about their financial situation within next three years, as workplaces open up and COVID-19 cases show a decline
4. Indian respondents are showing interests in purchasing new vehicles
• 74 percent respondents are planning to buy a new vehicle in the next six months
• 30 percent of the respondents who plan to replace their vehicle are likely to do so to get vehicle with new features
5. Indian respondents are actively exploring leisure travel
• Intent to travel for leisure in the next three months has seen an upward trend
• 65 percent Indian respondents feel safe about flying and staying in a hotel
About the survey
Deloitte’s Global State of the Consumer Tracker is a longitudinal, online consumer survey fielded monthly across 23 countries. A minimum of N=1,000 respondents aged 18 and older are collected per wave in each country. Responses are weighted at the country level according to publicly available age and income profiles. Margin of error ±3%.
India data has been weighed for age and gender; however, it is skewed towards urban English-speaking urban population.
Notes to the editor for reference purposes only
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