The Hindu Business Line : Indians ready to splurge, says survey

A RUPEE saved is a rupee earned. For long this had been the archetypal approach to life of the average Indian. But not any more. Indians are now about to show the world how to loosen the purse strings.

From dabbling in equities and mutual funds to out-of-home entertainment, buying new clothes, going out on vacations and decorating their homes, Indians are gearing up to splurge on things that were considered luxuries till recently.

And it is a positive outlook of the country's economy that is driving Indians to the shopping malls.

Indeed, Indians are preparing to go on a spending spree like never before in the country's history, even as consumers globally pull back in the light of uncertain economic conditions, according to a global survey conducted by ACNielsen, the marketing information provider.

A global online survey covered thousands of respondents across 38 markets from Europe, Asia Pacific, and North America to emerging markets.

"Socially and economically, India is developing at a galloping pace when compared to the rest of the world. With an estimated compounded economic growth rate of over eight per cent, Indian and Chinese consumers have greater spending power today then they had at any time in recent history," said Mr Sarang Panchal, Executive Director of ACNielsen South Asia.

Although still 54 per cent of Indians believe in saving, the rest are indulging in shopping and entertainment.

The survey reveals that in terms of priority in spending, after basic living expenses are accounted for, Indians are intent on investing in equities/mutual fund (41 per cent), indulging in out-of-home entertainment (34 per cent), buying new clothes or embarking on vacations (33 per cent), and decorating their homes (30 per cent).

"Clearly, some industries will benefit more than others as consumers prioritise their purchases. These are the industries to watch out for, since they will command a greater proportion of the consumer wallet."

Chinese consumers also have a similar penchant for spending.

"Mainland Chinese consumers were simply unbeatable when it came to shopping, their priority being out of home entertainment (50 per cent), new clothes (44 per cent, and new technology (41 per cent)," the survey said.Globally, people in India (79 per cent) were feeling the most upbeat about the country's economy, followed by Hong Kong with 75 per cent and China 70 per cent.

The most telling indicator that economic optimism in India is here to stay is the fact that Indian consumers are also the most optimistic in terms of their expectations for employment opportunities and the health of their personal finances.Based on the three dimensions of job prospects, personal finance and spending desires, ACNielsen has established a Global Consumer Confidence Index.

And at the top of the Index is India, with a score of 127, followed by New Zealand with 119 and Ireland with 113. At the bottom of the scale is Korea, scoring an index of 58.

The global average was 92.

It certainly seems to be party time for Indians.

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