Coming out of the pandemic, consumers in India have expressed a strong desire to buy more discretionary products during the festive season, according to Deloitte’s Global State of Consumer Tracker.
Deloitte’s latest analysis indicates that consumers are willing to increase spending on both travel and hotel stays. They also intend to buy either a new or used vehicle within the next six months.
“Despite concerns over inflation, the planned spending over the next four weeks will see a spike across age groups in all categories,” Deloitte said in a press statement.
Consumers’ intent to purchase clothing, electronic and home furnishing, and recreation, entertainment and leisure, indicates a positive spending pattern triggered by the upcoming festive season.
Increase in discretionary spend
“The survey findings indicate that consumers plan to increase their discretionary spend by 30 per cent (on items such as recreation and entertainment, restaurants, and leisure travel) in August 2022, compared with April 2022,” it said.
The current wave indicates consumers surveyed were willing to travel to domestic and international destinations. With ‘mask-lift’ announcements and easing out of other Covid-related restrictions in some countries, about 88 per cent of Indian consumers plan to spend on leisure travel in the next four weeks.
“The upcoming festivities and sale offer play a key role in propelling the Indian auto industry, which is expected to grow at a high pace in the next six months,” Deloitte said. “The tracker indicates that surveyed consumers’ intent to buy a vehicle grew by 9 per cent in the past four months.”
As on August 2022, 78 per cent of Indian consumers surveyed across age groups plan on buying a vehicle in the next six months; of which, 84 per cent plan to buy a new one. The prominent reasons for purchasing a vehicle were the high maintenance cost of old vehicles and the new features offered in the latest models.
Commenting on the latest trends of the Global State of Consumer Tracker, Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP, said, “In the past year, consumers have been unwavering in their priorities — they still feel introspective, and focused on health, well-being, and purpose.”
“Our recent wave 34 tracker indicates that despite the concerns over inflation, Indian consumers are willing to increase their spending during the upcoming festive season. Clearly, online purchases remain strong, albeit to a lesser extent than during the peak of the pandemic. Relevant sectors, such as consumer products and retail, automotive, and travel and hospitality, look to benefit from the buoyant mindset of the consumers covered in the survey,” he added.