Indian consumers spend to live the moment despite inflation blues: Survey

tourism industry, travel restrictions, coronavirus, Lockdown, COVID-19
Conscious yet meaningful consumption is being celebrated by Indians as they look forward to "experience" the present rather than living it virtually. | PTI File Photo

Despite global inflationary concerns, Indians are looking forward to having a balanced life with plans to spend on luxuries such as personal care, clothing, vehicle, leisure travel and air travels, according to the findings of a survey by Deloitte Touche Tohmatsu India.

Indians are not only focused on saving for the future (58 per cent of the respondents) but also want to spend for experiences and goods/ physical possessions (50 per cent each), the report said, adding that robust vaccination drives and an uptick in positive consumer sentiments are the primary reasons for this shift.

According to the findings, 77 per cent of consumers are optimistic about their financial situation within the next three years, as workplaces open up and COVID-19 cases show a decline.

Deloitte Touche Tohmatsu India on Monday unveiled Wave 24, the latest analysis of its Global State of the Consumer Tracker. The consumer tracker is an online survey conducted on 1,000 respondents each in 23 countries.

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“While 74 per cent of Indian respondents are concerned about inflation. At the same time, 85 per cent of Indian respondents plan to spend on leisure travel in the next four weeks, 71 per cent of Indian respondents feel safe engaging with one-on-one services and 68 per cent of Indian respondents feel safe going to a restaurant,” it said.

Inflationary concerns were observed across the globe in South Africa (86 per cent), Spain (85 per cent), Poland (84 per cent), Brazil (80 per cent), India (74 per cent), Canada (74 per cent), UK (72 per cent) and US (71 per cent). However, 77 per cent of Indian consumers are optimistic that their financial situation is likely to improve in the next three years, it added.

While discussing the key trends emerging from the survey in India, the report said 85 per cent of Indians plan to spend on leisure travel in the next four weeks and 74 per cent of Indians plan to buy a vehicle in the next six months.

“Most of the Indian consumers are planning to spend the most from their share of wallet on personal care and clothing (14 per cent) along with recreation, entertainment and leisure travel (14 per cent), followed by electronics and home furnishings (11 per cent),” it said.

Indians are showing interest in purchasing new vehicles as 74 per cent of respondents are planning to buy a new vehicle in the next six months, and 30 per cent said they are planning to replace their vehicle and are likely to do so to get a vehicle with new features.
Deloitte Touche Tohmatsu India LLP Partner and Consumer Industry leader Porus Doctor 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,” he said.

Inflation is defined as the upward movement of prices of goods and services. Various economists say the global inflation has been affecting countries and individuals more after the 2008 economic slump. The largest inflation recorded was in the slump year (2008), when most reports put the global inflation growth at 6.4 per cent.

(With inputs from Agencies)

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