Consumer sentiment witnessing signs of improvement: BCG Survey

Our Bureau New Delhi | Updated on August 17, 2020

While the country continues to grapple with the Covid-19 pandemic, consumer sentiment is beginning to witness some improvement. According to a BCG survey report, there has been an uptick in consumer spending sentiment across many semi-essential categories such as personal care, packaged food as well as discretionary items like apparel, cosmetics, auto and consumer electronics.

BCG’s latest round, which is the 5th round, of consumer sentiment survey was conducted over July 20-August 2 among 3,000 urban consumers covering all socio- economic groups.

"The overarching theme emerging from the latest survey is one of ‘cautious living’ with consumers beginning to feel that it is time that they need to resume their activities albeit with a lot of caution," the company said in a statement.

As per the latest survey, 44 per cent respondents believe their income in the next 6 months will be lower than pre Covid levels, which is significantly lower than 57 per cent in the last round conducted over May 18-23. Meanwhile, 42 per cent respondents said they expect their spending over the next 6 months to be lower compared to 53 per cent in the last round.

“We are beginning to see a change in the consumer sentiment. The overarching feeling in all the previous rounds of survey had been more around fear, worries about economy and their own incomes, whereas the latest round speaks much more about learning to live cautiously with the virus," said Kanika Sanghi, Lead, Centre for Customer Insight for BCG India.

"The spending sentiment has improved across many categories. While essentials, health, in home entertainment continue to be winners, there is an uptick in sentiment across many semi-essentials like personal care, packaged food as well as discretionary items like apparel, cosmetics, auto, consumer electronics. Travel, out of home entertainment, on the other hand, continues to show little to no improvement," the statement added.

Published on August 17, 2020

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