Monday, December 23, 2024

Deloitte report finds Indians have started spending

After two successive waves of Covid-19 hitting the country, India is “cautiously returning” to a state of “business as usual”, said the Deloitte’s Global State of Consumer Tracker

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Deloitte, a global consultancy and advisory firm, have projected a rosy picture for the Indian economy. A report prepared by Deloitte mentions that there is a revival of consumption and Indians were spending now on more discretionary items.

After two successive waves of Covid-19 hitting the country, India is “cautiously returning” to a state of “business as usual”, said the Deloitte’s Global State of Consumer Tracker. Deloitte India unveiled wave 20, the latest 30-day analysis of its Global State of the Consumer Tracker, which indicates a 6 per cent decline in the overall anxiety levels to 39 per cent, as the number of new COVID-19 cases across the country continue to decrease.

Indian consumers have shown an intent to increase discretionary spends in anticipation of the upcoming festivities like Eid, Raksha Bandhan, Janmashtami, and Ganesh Chaturthi. Across age groups, there continues to be a preference to spend more on convenience.

The following facts indicate the decrease in anxiety:

  • 87 per cent consumers are willing to spend more as they prioritise convenience over price
  • 61 per cent consumers have indicated that they now feel safe visiting the stores to shop
  • 51 per cent have shown willingness to attend in-person events

However, the concerns about physical well-being prevail:

  • 79 per cent of Indian consumers are concerned about their physical well-being
  • 85 per cent are concerned about the health of their family

Deloitte’s Global State of Consumer Tracker indicates that young adults are saving more (47 per cent) as compared with people above 55 years of age (43 per cent). While corporate India is still evaluating return to work policy, work-from-home has helped staff save significantly on transport and rent.

 

Porus Doctor, Partner and Consumer Industry leader, Deloitte Touche Tohmatsu India LLP said, “Our latest survey insights indicate that the Indian consumer is showing signs of reduced anxiety and is open to looking at increasing discretionary spends. Only 20 per cent of Indian consumers are concerned about returning to their workplace; but 65 per cent are concerned about losing their jobs. Travel sentiments are showing positive trends; those consumers in the age group above 35 have shown interest to travel for leisure in the next three months and 58 per cent of consumers have indicated they are comfortable staying at a hotel.”

 

Food lovers are returning to restaurants with Covid curbs at a low.  Restaurants, pubs and bars around the country have reopened after over a year-and-a-half and food lovers have started returning to restaurants

 

Other trends:

  • Declining use of public transport and spending cautiously on the next vehicle is a constant trend
  • 79 per cent of Indian consumers intend to keep their current vehicles for a longer time
  • 76 per cent respondents, compared with 79 per cent in the previous wave, are concerned about using public transport
  • 55+ age group shows confidence in stepping out
  • People aged 55+ are feeling safer while venturing out when compared with young adults in the age group of 18-35

– 78 per cent of people aged above 55 feel safe going to a store

-70 per cent feel safe going to a restaurant

– 69 per cent feel safe staying in a hotel

– 71 per cent feel safe taking a flight and only 9 per cent are concerned about return-ing to their workplace

Food lovers are returning to restaurants with Covid curbs at a low.  Restaurants, pubs and bars around the country have reopened after over a year-and-a-half and food lovers have started returning to restaurants.

A latest report by Dineout, the country’s largest restaurant tech platform, has shown that cities like Delhi, Kolkata and Hyderabad have witnessed the maximum recovery among metros. Restaurants in Delhi and Kolkata are now operating at nearly 2X of February 2021 levels, the report said.

The average order value at restaurants (ATV) in July-August increased by as much as 20 per cent since February, with smaller cities like Agra (24 per cent), Indore (29 per cent) and Ludhiana (35 per cent) registering the biggest surge in restaurant order value. This signifies a release of the pent-up demand for good food and socializing with friends and family.

The report further noted that owing to higher disposable income, luxury dining across India has increased by as much as 120 per cent and fine dining by 105 per cent. While, the average number of diners per booking has witnessed a big jump.

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Tirthankar Ghosh
Tirthankar Ghosh
Tirthankar Ghosh is a senior journalist and presently Managing Editor, Newsline Publications. He has also been writing for well over 15 years for the New York-based Air Cargo News Flying Typers.

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