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CLSA’s proprietary online survey of 1,000 Indian consumers has found tentative consumer confidence.
“Lower income may make more consumers reduce Diwali spending versus raising it, despite increased discounts,” CLSA said in its Ear to the Ground report, adding that it is concerned that price hikes and possible hardening of rates through 2022 could hurt demand unless consumer sentiment improves
Job loss
CLSA’s inaugural proprietary online survey of Indian consumers revealed that 73 per cent of respondents have either lost their jobs or had a drop in incomes.
“This income uncertainty continues to play on consumers’ minds ahead of the festive season,” the report said.
Although two-thirds noticed increased discounts during the festive season, 37 per cent respondents plan to lower their Diwali spending compared to 27 per cent who plan to raise their expenses in this festive season.
Also read: 80% Indians admit Covid-19 has been a wakeup call to fix their financial health: Survey
Respondents also delayed spending on vehicles and home improvements, despite some positive intent on buying homes, it further said.
The survey underscores a definitive shift in consumer habits in favour of fintech companies, e-commerce, OTTs and digital players.
Insurance, health and hygiene companies may have lasting gains due to changing consumer preferences after Covid-19, the report said.
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