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Despite rising concerns across sectors over a slowing economy and tightening of discretionary spends, consumers are likely to loosen the purse strings during the upcoming festival season.
According to its annual mood survey conducted by LocalCircles, nearly 43 per cent consumers surveyed said they would spend up to ₹10,000 on festive basics, while 31 per cent said they plan to spend reasonably between ₹10,000-₹50,000 during the festival season. About 4 per cent of respondents said they plan to spend luxuriously over ₹50,000 during the festive season.
“The last few quarters have been tough for many sectors, as consumer spending has continuously declined. The Mood of the Consumer Survey indicates that while the cutbacks in spending are quite real, the consumer is likely to be back in the market, come October,” LocalCircles stated.
LocalCircles, which is a community feedback platform, received 49,000 responses from around 22,000 unique consumers.
Nearly 29 per cent of the consumers who plan to spend over ₹50,000 in the festive season said home renovation is their top priority. “29 per cent said home renovations, 12 per cent said automobiles, 6 per cent said jewellery, 18 per cent said white goods like TV, fridge, washing machine etc. 12 per cent said they would spend on gadgets, 3 per cent on property while 20 per cent plan to spend on other items,” the survey findings pointed out.
Asked about their expectations on their financial situation in the next six months, only one-third of the respondents said they were optimistic about their financial position getting better. Nearly 31 per cent of the respondents said their financial position would stay the same. However, 31 per cent of the respondents expects their financial situation to worsen in the next six months, while 7 per cent of the consumers surveyed said they were unsure.
“This indicates that the consumers are divided when it comes to outlook of their financial position. Companies should take this into account as they plan their marketing programs and new product launches,” LocalCircles added in a statement.
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