Cars, ACs, healthcare: Household spending increases 53% this festive season in India

The report revealed a notable increase in overall household spending. 53% of families reported an uptick in expenditures

By Newsmeter Network  Published on  5 Oct 2023 5:54 AM GMT
Cars, ACs, healthcare: Household spending increases 53% this festive season in India

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Hyderabad: A new survey has revealed that family household spending has increased 53 percent this festive season.

According to Axis My India's latest India Consumer Sentiment Index (CSI) report, families are opening their wallets with enthusiasm this festive season.

The data provides comprehensive insights into consumer behavior during this celebratory period, shedding light on shifting trends in spending habits and priorities.

Around 5,452 participants were surveyed in 35 states and Union Territories. The report revealed a notable increase in overall household spending. 53% of families reported an uptick in expenditures. This festive fervor, however, carries a nuanced twist, as there has been a 2% dip from the previous month in this spending surge.

The CSI report, which delves into various sub-indices, highlights key trends in consumer behavior:

Essential and Non-Essential Spending:

Spending on essential items, encompassing personal care and household items, has increased for 43% of families—an increase of 2% from the previous month. In contrast, non-essential and discretionary spending on items like air conditioners (ACs) and cars has risen for 9% of families, marking a noteworthy 3% spike from the previous month.

Healthcare Expenditure

Health-related spending has seen a significant uptick, with 36% of families investing in vitamins, tests, and healthy food. This represents a 2% increase from the previous month.

Festive Priorities

With the festive season in full swing, 55% of respondents plan to prioritize spending on food and groceries, while 37% intend to allocate their budget towards clothing and accessories. These choices underscore the significance of festive delights in India's cultural celebrations.

Product Quality vs. Discounts

A striking 43% of shoppers emphasize product quality as their primary consideration during festive purchases, revealing a discerning and quality-conscious consumer base. In contrast, 21% focus on discounts, indicating the enduring appeal of value-driven shopping.

Preference for Local Outlets

The report celebrates the enduring preference for local markets, with 56% of participants favoring them. This echoes the "vocal for local" ethos and emphasizes the importance of supporting local businesses within communities.

Big Ticket Spending

While 77% of participants exercise caution by refraining from significant purchases during the festive season, 18% exhibit economic resilience and willingness to engage in substantial spending.

Payment Preferences

Traditional cash remains the favored payment method for 78% of respondents, reflecting deep-rooted customs. However, 16% are embracing digital wallets, and 6% opt for the convenience of debit/credit cards and online banking.

Shopping Channels

Social media ads have gained prominence, with 34% of participants relying on them for updates on festive offers. Word-of-mouth recommendations (32%) and newspapers (12%) also play a pivotal role in disseminating information about festive deals.

Sales Events Impact

The festive season hosts renowned sales events on e-commerce platforms, enticing shoppers with discounts and offers. A significant 20% of participants eagerly await these sales to capitalize on the festive spirit.

Brand Interaction

Brands that offer compelling deals can engage with consumers effectively, as 33% of respondents are more likely to interact with brands when presented with attractive offers. However, 39% prefer not to interact with brands on social media for festive deals.

Sharing Festive Finds

In the spirit of the festive season, 42% of participants choose to keep their experiences with brand deals private, while 23% are interested in sharing their brand interactions on social media.

These insights provide a vivid portrait of Indian consumers during the festive season, offering valuable guidance for businesses seeking to navigate this dynamic and vibrant market.

As families open their wallets and make spending decisions, the balance between quality and discounts, traditional and digital payment methods, and support for local businesses underscores the complex interplay of factors shaping consumer choices during this joyous time.

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