Economy

Over 50% of affluent households profoundly impacted by pandemic: Study

Prashasti Awasthi Mumbai | Updated on July 07, 2020 Published on July 07, 2020

Access Media International, a strategic consulting and market research outfit, carried out a research study that focussed on the post-Covid perceptions of the affluent consumer segment on how it is likely to prioritise their household spending in the immediate future.

According to the research, the pandemic and the collateral damage, current and anticipated, have had a significant impact on affluent consumer households. Over 50 per cent of the respondents were found to be 'profoundly impacted'.

It noted that close to 35 per cent will not likely undertake air travel in the next two quarters. However, for weekend getaways, they might opt for motels and resorts. Almost 35 per cent are willing to travel upcountry for weekends/short vacations.

It would appear that several of these households had new/first-time gaming members added recently. Spend in terms of time and money on gaming is set to go up, the study said.

“The experience has left most consumers quite circumspect in their actions and undertakings”, said Pravir Ganguly, co-founder, Access Media International.

Households were unequivocal that the recent experience has had a significant impact on their lives. “Having said that, as the virus adjusts to its new living conditions, and we grapple with this pesky alien, most have started reconciling to the new normal,” said Ganguly.

The study also determined that the insurance sector is among the big gainers in the post-Covid era — the gains would be in health/medical as well as life insurance.

The outlook for vehicle purchases in the next two quarters looks more than modest considering the fact that the automotive industry has been struggling since much before the pandemic, the report indicated.

Almost equal numbers of households plan to increase or dilute their investments in the immediate future. The demand is for MFs, stocks/bonds and gold. There seems to be a demand for personal business loans, vehicle loans, and loan against property/gold, it further added.

Over 1,000 responses from metros, tier 1 and 2 cities were collected in June and the beginning of July. Random stratified sampling was done to get to affluent household members who, as per the selection criteria, were earning members or homemakers.

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Published on July 07, 2020
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