Bangalore, 4th August 2023: Axis My India, a leading consumer data intelligence company, has unveiled its latest report on the India Consumer Sentiment Index (CSI), providing invaluable insights into evolving media consumption patterns, consumer behaviour, and data privacy sentiments. The survey shows the change in household consumption, particularly among demographics, with spends on essential items increasing. Moreover, the report reveal trends in spending habits of consumers especially during the festive season nearing. With data-driven observations and comprehensive analysis, this report serves as a crucial resource for businesses seeking to align their marketing strategies with changing consumer preferences in the digital age.
The August net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, which has increased as compared to last month (+7).
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, entertainment & tourism trends.
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 5092 people across 35 states and UTs. 65% belonged to rural India, while 35% belonged to urban counterparts. In terms of regional spread, 22% belong to the Northern parts while 25% belong to the Eastern parts of India. Moreover, 28% and 26% 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, 31% each reflect the age group of 36YO to 50YO and the age group 26YO to 35YO.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, said” Amidst the dynamic landscape of India’s retail sector, a compelling panorama of consumer trends emerges, signifying a transformative shift. With a burgeoning sense of optimism, households witness a noteworthy increase in spending, painting a vibrant picture of economic vitality. Essential commodities and well-being take precedence, reflecting a conscious and purposeful approach, while discretionary purchases find their place within mindful choices. As the festive season approaches, mobile phones and other discretionary goods dominate purchase intentions. By staying attuned to the ever-changing symphony of consumer demands, companies can navigate the retail landscape skillfully and embrace a prosperous future of delighting customers with tailored products and experiences.”
· Overall household spending has increased for 58% of the families, which is an increase by 2% from last two months and the highest increase in the last five months. The net score, which was +48 last month is +46 this month. The increase is slightly higher in the southern states such as Andhra Pradesh (71% each) followed by Telangana (67%), and Karnataka (65%).
· Spends on essentials like personal care & household items have increased for 44% of families, which marks a significant increase by 13% from last month and the highest in the last five months. The net score, which was at +18 last month has surged to +23 this month which is the highest in the last five months. Essential spending reflects an increase majorly for the southern states such as Telangana (67%) Andhra Pradesh (63%) and Tamil Nadu (61%).
· Spends on non-essential & discretionary products like AC, Car, and Refrigerators have increased for 6% of families, which is an increase by 1% from last month. Discretionary spending reflects an increase majorly for the states of Meghalaya (17%), New Delhi (13%), and Odisha and Tamil Nadu (11% each).
· Expenses towards health-related items such as vitamins, tests, healthy food has surged for 33% of the families. This reflects an increase in consumption by 3% from last month. 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 -14 this month. Health-related products consumption increased more for the states of Punjab (44%), Rajasthan and Chhattisgarh (42% each).
· Consumption of media (TV, Internet, Radio etc.) has increased for 20% of families, depicting an increase in media consumption percentage by 2% from last month. This increase is depicted after a decrease was reflected last month at 18%.
· Mobility has increased for 7% of the families, which is a dip by 1% from last month. Mobility is highest amongst the states of Tamil Nadu (24%), Arunachal Pradesh (14%) and Rajasthan (12%)
On topics of current national interest
In terms of spending motivations among consumers across different product categories, the survey findings revealed the top four areas where consumers plan to increase their expenses, these include health-related items (Ointments, medicines, bandages, etc), view of 31%; household items (food/drinks/grocery), view of 28%; home improvement, view of 23%; and on clothing, view of 22%.
The survey further sought consumer responses on the products and services they either bought in the last 6 months or plan to purchase in the next 6 months.
Bought in the last 6 months – The results revealed that 3% of respondents bought a 4-wheeler (Sedan, SUV, Mini) in the last 6 months, 7% of respondents purchased a 2-wheeler (Scooty, Bike, Electric). 1% of respondents bought a tractor in the last 6 months. Furthermore, 18% of respondents acquired a mobile phone in the last 6 months while 7% of respondents made a purchase in the home appliance category (TV, Fridge, AC) in the last 6 months. Finally, only 7% of respondents bought luxury goods (Watch/Jewelry, items more than Rs. 10,000) in the last 6 months.
Planning to Purchase in the next 6 months – In the automotive category, 13% of respondents expressed their intention to purchase a 4-wheeler (Hatch, Sedan, SUV) in the next 6 months, while 15% of respondents plan to buy a 2-wheeler (Scooty, Bike, Electric). Regarding tractors, 6% of respondents are considering purchasing one. On consumer electronics, 17% of respondents are planning to buy a mobile phone in the next 6 months, while 13% intend to purchase home appliances. Finally, in the luxury goods category, 15% of respondents have plans to purchase in the next 6 months.
As the festive season approaches, Axis My India surveyed consumers to understand their primary purchasing factors over the next six months. According to the findings, a significant 47% of respondents prioritize quality as their primary purchasing factor, emphasizing their preference for durable and high-quality products. This view mostly resonated with the consumers of Karnataka, Maharashtra, Punjab and Chhattisgarh. Affordability and budget-conscious choices remain essential, with 23% of respondents placing price as their top consideration. Brand equity also plays a role in consumer decisions, as 14% of respondents consider it a crucial factor, indicating trust in established and reputable brands. While though sustainability and environment-friendly options are gaining traction, only 2% of respondents prioritize these aspects in their purchases. Convenience is valued by 11% of respondents, reflecting a preference for easily accessible and time-saving options.
Axis My India CSI survey aimed to understand content consumption trends among consumers. The survey covered various mediums, including television, newspapers, online video content, radio, and movie halls.
Television Consumption: 70% of respondents reported watching TV shows daily, with 87% watching it atleast once a week, indicating that television remains a popular medium for entertainment. Regions like Northeast, Karnataka, Gujarat and Delhi recorded the highest percentage of respondents with ‘everyday’ consumption habits. This highlights the popularity of television in these regions.
Newspaper Consumption: 64% of respondents read newspapers daily, indicating that traditional print media remains relevant despite the digital age. 15% of respondents read newspapers once or twice a week, showcasing a smaller but noteworthy group of occasional readers. Regions such as Karnataka, Kerala, Madhya Pradesh, and West Bengal showed the highest percentage of ‘everyday’ newspaper readers, suggesting strong newspaper readership in these areas.
Online Video Content Consumption: 80% of respondents reported watching video content on platforms like YouTube, Instagram reels, Facebook shorts, etc., daily. This shows the significant impact of digital media on content consumption. 47% of respondents reported watching Over-The-Top (OTT) shows daily, reflecting the growing popularity of on-demand streaming services.
Daily OTT Consumption: 47% watch OTT shows daily. Respondents from regions like Chhattisgarh, Gujarat, Haryana, and West Bengal reported the highest daily consumption of OTT content. This shows the growing popularity of on-demand streaming services in these areas.
Radio Consumption: Despite the rise of digital media, 49% of respondents still listen to the radio, highlighting its continued relevance and reach.
Movie Halls: 45% of respondents reported visiting movie halls less than once a month, indicating a decline in physical movie-going habits, possibly due to the availability of digital streaming platforms.
Ahead of India’s 76th Independence Day, the survey gauged key expectations of citizens from the government. It revealed diverse priorities among respondents. The top two expectations were to bring down inflation, with 46% of respondents emphasizing its importance, and to generate employment opportunities, which garnered 41% of the responses. Additionally, 19% of respondents highlighted the need for better infrastructure, encompassing improvements in schools, hospitals, and roads. Furthermore, 16% of respondents expressed their expectations for the government to address everyday challenges related to food, clothing, shelter, and water. Concerns about farmers’ prosperity garnered the attention of 13% of respondents, while 6% stressed the importance of peace and harmony across religions. Border security and strengthening India’s global image were each mentioned by 3% and 2% of respondents, respectively.
Seeking consumer responses on whether they believe the nation has progressed more in the last 10 years (2013-2023) compared to the 10 years before that (2003-2013), it revealed that 75% of respondents hold the view that the nation has indeed made significant progress in the recent decade. On the other hand, 22% of respondents expressed a contrary opinion, believing that progress has not been substantial in the past 10 years. A smaller proportion, constituting 3% of respondents, expressed the belief that the progress remained relatively unchanged during the two periods under consideration