Indian consumers prioritise health and safety over discretionary consumption: Deloitte’s Global Consumer Tracker
- India ranks highest amongst 18 countries in terms of anxiety during the second wave of the pandemic; 21% consumers in India are anxious, followed by Chile (16%), Poland (13%), South Africa (13%) and Italy (13%)
- The overall spending intent is up especially on healthcare products (48%) and medicines (33%) household (44%), and groceries (47%)
- 23% consumers are concerned about returning to their workplace and 55% about losing their job
With the significant increase in the number of cases, the Indian consumer is seen to cautiously approach the future by prioritising health safety, preferring online channels for purchases, and choosing to delay large purchases.
Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP said, “Our survey insights are a reflection of the heightened consumer apprehensions, which are at the core of their decision-making. As the health crisis again takes centerstage in the country, the average Indian consumer prefers to use digital and online channels wherever applicable”
Key trends emerging from the survey include the following:
1. Online purchases continue to show a strong trend
Throughout the pandemic, online medium has emerged as the preferred channel for purchase and continues to grow. Here is how consumers have been buying online - medicines (22%), electronics (34%), clothing (33%), food ordering online from restaurants/take-aways (33%), and if available, the next vehicle online (57%) as well due to various restrictions.
2. Cautious consumption
o The spending intent shows consumers are focussing more on non-discretionary items as compared with the previous waves of the survey. For instance, 48% consumers show net spending intent towards healthcare, 33% towards medicines, 42% towards internet, 47% towards groceries, and 44% towards household goods, indicating that consumers want to focus on non-discretionary spends in the time of crisis.
o The consumer persona shows, stock piler (63%), convenience seeker (69%) and bargain hunter (51%) still remain high amongst the Indian consumers.
3. Concern on returning to workplace
Indians are significantly more concerned about returning to the workplace than they were in February 2021. About 28% today worry about returning to their offices, as compared with 15% in February 2021.
4. Consumers gearing towards at-home economy
Individuals are not looking to venture out as they do not feel safe about going to a store, restaurant, engaging in person activities, staying in a hotel, returning to workplace, taking a flight, etc.
Other trends:
1. Socially conscious shopping:
67% of consumers prefer more locally sourced items going forward even if they cost a bit more, and 71% prefer brands that responded well during pandemic.
2. Consumer mobility:
o The findings indicate consumers’ intent to stick to their current vehicles for a longer period than they had originally expected (71%); his has been a consistent trend globally
o 61% consumers are putting off regular maintenance for their vehicle, and 47% consider their car doesn’t need replacement
o Over the next three months, consumers plan to limit use of public transit (71%) and ride-hailing (63%)
3. Travel and hotel stay:
The recent developments have brought about a shift in plans to travel for leisure and business. 46% feel safe staying in a hotel while 48% feel safe while travelling.
About the survey
Global State of the Consumer Tracker is a survey fielded using an online panel where consumers over 18 years are invited to complete a questionnaire (translated into local languages) via an email. It is fielded in 18 countries (targeting 1,000 people per country/wave) and designed to be nationally representative of the overall population in each market.
Countries in focus
India, Chile, China, Mexico, Australia, the United Kingdom, the United States, Ireland, South Korea, South Africa, Canada, Japan, France, Poland, Spain, the Netherlands, Germany, and Italy.
**The current analysis contains insights of wave 17** (data reference of 31st March 2021), as stated in the Consumer Tracker link.**
**The dashboard survey results would be an ongoing demonstration. The first 10 waves were bi-weekly analysis, though waves 11−17 show monthly updates**
** Wave1 of the survey was on 15 Apr 2020**
Notes to the editor for reference purposes only
This press release has been issued by Deloitte Touche Tohmatsu India LLP.
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