Mumbai, 1st December 2022: Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. The December report reveals that sentiments have dipped across 3 out of 5 sub-indices. While spending across health products has improved reflecting an increase of 3% from last month, sentiments, however, remain the same as last month for essential consumption. The survey further highlights that 34% of consumers notice in-store promotional offers and 50% of them believe it influences their purchase decision.
The December net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +07, from +09 last month reflecting a decrease by 02 points.
The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, and entertainment & tourism trends.
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 10454 people across 33 states and UTs. 69% belonged to rural India, while 31% belonged to urban counterparts. In terms of regional spread, 24% belong to the Northern parts while 27% belong to the Eastern parts of India. Moreover, 29% and 20% belonged to Western and Southern parts of India respectively. 61% of the respondents were male, while 39% were female. In terms of the two majority sample groups, 32% reflect the age group 36YO to 50YO
and 29% reflect the age group of 26YO to 35YO.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, of Axis My India, said “Consumers have experienced a full circle, starting with restricted spending due to COVID-19, moving on to revenge shopping after the restrictions were relaxed to festive sentiments, and finally to stagnation due to inflation. Whether it is spent on essential/discretionary products or travel and tourism inflation continues to impact these indices of consumer sentiment. This may be one of the factors influencing customers to choose domestic travel over foreign ones. The spending capacity which is the elevated basis of one’s savings is at the moment impacted by increased interest rates. Diverting spending on healthcare is another critical reason. The post-pandemic behavior of investment in health and healthy choices continues to remain the top priority of several households. Finally, even though spending on essential and non-essential appears to reflect lowered sentiments, marketers should note that exploring and experiencing enticing offers from physical stores continues to influence consumer purchase decisions. Therefore marketers should capitalize on this to improve and increase in-store purchases.”
Key findings:
· Overall household spending has increased for 56% of families which reflects a decrease of 3% points from last month. The net score which was +51 last month has decreased by -4 to +47 this month
· Spends on essentials like personal care & household items have increased for 46% of families, which is the same as last month. The net score which was at +27 last month, increased by one this month
· Spends on non-essential & discretionary products like AC, Car, and Refrigerator have increased for 8% of families, which reflects a decrease of 3% from last month. The net score, which was at +4 last month has reduced to -1 this month, showcasing downward sentiments post the end of the festive season
· Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 42% of the families, which is the highest in the last three months. This reflects an increased consumption of 3% from last month mainly because of the onset of the winter season. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -27, which has dipped – 4 from last month
· Consumption of media (TV, Internet, Radio, etc.) has increased for 21% of families, which is the same as last month. The overall, net score, which was at -4 last month, is at -2 this month
· Mobility has increased for 6% of the families, which reflects a decrease of 1% from last month. The overall mobility net indicator score which was at -1% last month, has reported -2 this month
On topics of current national interest:
· Demystifying the nature of consumers’ engagement with in-store promotional offers, the survey unveils that 34% notice promotional offers running in stores, and 50% of those who notice these promotional offers indicated that it would influence their final purchase decisions.
· Capturing the enthusiasm around the FIFA world cup, Axis My India’s CSI Survey discovered that 17% would be watching some key matches while 9% would be watching all matches. Gauging the preference in terms of viewing medium, the survey revealed that more than half of those surveyed (58%) would view it on TV, whereas 27% and 12% will view it on Mobile and OTT platforms respectively.
· Deep diving into the entertainment sector, the survey exposed that Amitabh Bachchan (with 15%) is the most preferred actor, whose movies consumers like to watch the most, followed by Akshay Kumar at 7%, Salman Khan at 6%, Allu Arjun at 5% and Shah Rukh Khan at 4%.
· Exploring sentiments around India’s biggest male celebrity (in sports/movies/art except for politics), the survey revealed that Virat Kohli with 25% is India’s favorite, followed by Amitabh Bachchan with 21% and Sachin Tendulkar at 17%. Furthermore, the survey found out that PV Sindhu with 11% is the biggest celebrity in the female category, followed by Mithali Raj with 10%.
· In an attempt to understand consumer year-end travel plans around holidays, the survey points out that 21% would go on a domestic holiday this season. Deep diving into the considerations, the survey indicated that 23% would base their decision on the cost, while 17% would base it on the season and destination. The family decision falls under the third set of considerations when planning for holidays.
· The survey also threw light on the newspaper reading routine of consumers and the preferred music medium, thus reflecting on consumers’ personal media engagement habits. The survey found that 35% read newspapers every day and 39% prefer to listen to music via YouTube. TV channels form the second favored medium for music listeners.
