Why Consumer Spending are Increasing For Essential And Non-essential Purchases
50 percent of families have increased spending on essential items, 18 percent of households increase in non-essential purchases. Overall household spending has increased for 63 percent of families in November, a surge of 7 percentage points from the previous month.
With more people now venturing out for outdoor activities, the signs of health-related caution are more apparent now than ever. Consumption of health-related items increased for 47 percent of families as compared to 44 percent last month, as per a report by Axis My India – CSI Survey.
Pradeep Gupta, Chairman and Managing Director, Axis My India, said, “While Diwali has triggered spending on products of personal indulgence (like 2-wheelers/ 4-wheelers or jewelry) and household items, the upcoming festivities and enthusiastic consumer sentiment will further set the momentum for the last half of this year. In addition, one can also witness a transition in terms of preferences amongst consumers’ like opting for EVs or cheering for privatization of loss-making companies.”
Consumers are further planning to go beyond smaller purchases - 24 percent were looking to spend on household or personal items like white goods, furniture, electronics and jewelry this Diwali. A majority 22 percent still prefer to park their money in a savings account, 4 percent rely on Gold, 40 percent still don’t invest and interestingly still 2 percent park their money in post office savings.
The survey also shows that a vast majority of India is still not investing in this age of cryptocurrencies. In fact, it would be interesting to see how financial players beyond traditional banks can capture and convert their interests for investments using varied instruments.