NEW DELHI : NEW DELHI: Indian consumers are more than ready to loosen their purse strings, buy more discretionary goods, resume leisure travel, and are more confident to return to work, a sign of a recovery in the consumption in the country, according to a survey by Deloitte Touche Tohmatsu India which included India.
Deloitte reported the results in its Global State of the Consumer Tracker measuring consumer responses over a 30-day period. The company has been following consumer sentiment since the start of the pandemic around the world. The survey is conducted in 18 countries and covers 1,000 people per country, per wave.
The Indians are cautiously returning to a state of “business as usual”, he said.
This surge in consumer confidence is supported by a decreasing number of covid-19 cases as well as an aggressive vaccination campaign, he said in a press release on Tuesday.
Over 80 crore Indians have been vaccinated at least with a single dose.
The results also reveal a decrease in anxiety levels among respondents in India, while also indicating increased levels of anxiety among respondents in the United States, Australia and the United Kingdom.
These are positive trends for India’s economic recovery, Deloitte said in its memo.
“The easing of restrictions on covid-19 across the country along with an accelerated vaccination campaign fueled positive feelings among consumers. Our latest survey information indicates that higher levels of consumer spending and lower levels of anxiety will boost India’s economic recovery, albeit with a touch of caution, ”Porus Doctor, Partner and Leader of the consumer industry, Deloitte Touche Tohmatsu India LLP.
The news comes as India is at the height of festival season, typically prompting households to upgrade their wardrobes, purchase new home electronics and other expensive goods.
This should translate into higher spending for consumers on discretionary items. “Consumers are actively spending on alcohol, cable TV, clothing or shoes, electronics, furniture and restaurants,” he added.
The results corroborate the reports from retailers. While retail sales have yet to reach pre-pandemic levels, monthly trends are encouraging. Retail sales in August hit 88% of pre-pandemic or August 2019 levels, supported by demand from the start of the holiday season, the Retailers Association of India (RAI) said in its survey of the retail earlier this month.
Deloitte’s findings also reveal a 4% increase in savings that could be in anticipation of future purchases and seasonal offers during the holiday season.
Meanwhile, respondents reported reduced hesitation when it comes to in-person interactions. “About 30% of those surveyed were concerned about physical interaction with a salesperson,” he said. This bodes well for retailers eagerly awaiting the return of consumers to stores.
Mobility is also booming. “With the gradual resumption of offices and other daily activities, Indian respondents seem to have reduced their anxiety about mobility, although 70% of respondents plan to limit the use of public transport in the current wave, which represents a slight decrease from 73% in the previous wave. vague, “the report says.
Meanwhile, international leisure travel is gaining momentum, with more than half of those surveyed planning international leisure travel in the next three months, the statement said.
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