Deloitte Report Notes India Sees A Revival In Consumption, Increase In Discretionary Activities
The findings of the report reflect that the Indian consumer is “ready to spend more on discretionary items, feels safe about returning to work place, wants to spend on travel”.
Indians are slowly making their way back to the office and is witnessing a consumption revival in the country with spending intent shifting towards more discretionary items, according to a report by global consultancy and advisory firm Deloitte.
After witnessing two waves of the pandemic, India is “cautiously returning” to a state of “business as usual”, said the Deloitte’s Global State of Consumer Tracker.
“Decreasing number of COVID-19 cases as well as an aggressive vaccination drive have brought in a new wave of confidence amongst Indian consumers,” it said.
The findings of the report reflect that the Indian consumer is “ready to spend more on discretionary items, feels safe about returning to work place, wants to spend on travel”. Moreover, Indian consumer is less hesitant about in-person events and activities — all of which are positive trends for India’s economic revival, it added.
“The easing of COVID-19-related restrictions across the country along with an accelerated vaccination drive has fuelled positive consumer sentiments. “Our latest survey insights indicate higher levels of consumer spends, and a decline in anxiety levels will boost India’s economic revival albeit with a touch of caution,” said Deloitte Touche Tohmatsu India LLP Partner and Consumer Industry Leader Porus Doctor said. According to the report, with robust vaccination initiatives by the government, Indians have gained confidence and are slowly returning to the workplace.
“However, the employees are expected to be in office on a need basis and with utmost precautions, keeping strong safety protocols in place,” it said. Moreover, as the festive season around the corner and lower COVID-19 cases, Indian consumers are showing lower levels of anxiety, resulting in their willingness to increase spending on more discretionary items. “Consumers are seen actively spending 12 per cent on alcohol, 36 per cent cable TV, 36 per cent clothing / footwear, 33 per cent electronics, 25 per cent furnishings and 22 per cent on restaurants,” the report, which is based on a survey, said. The survey is based on a 30-day analysis of consumer spending behaviour of 1,000 persons in India, during July-August.
Besides, the Indian consumers are all set for international travel as several countries lifting travel restrictions for India. Fifty-seven per cent Indians surveyed are planning international travel for leisure in the next three months. “With several initiatives to allow the movement of passengers between nations like air bubbles, vaccine passports, travel corridors and now vaccinated travel lane (VTL), search inquiries for travel to international destinations, have been on rise, providing a glimmer of hope for the beleaguered travel and hospitality sector,” it said. According to the findings, the Indian consumer has also transformed to be a socially conscious shopper “Sixty-eight per cent respondents would like more locally sourced items and 74 per cent purchased from brands that responded well to the crisis,” it said.