About 48% consumers plan to spend a minimum of ₹1,000, going up to ₹50,000, on purchasing discretionary products in the next four months, according to a survey by LocalCircles.
The bi-annual ‘Mood of the Consumer Survey’ received more than 44,000 responses from consumers in 302 districts of India with 55% respondents from tier 1 cities, 26% from tier 2 cities, and 19% from tier 3 and tier 4 cities and rural districts.
As per the survey, while 10% households plan to spend over ₹50,000 on discretionary purchases in the next four months, 21% households plan to spend between ₹10,000-₹50,000.
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“This would mean good news for many sectors of the economy that saw slowdown in consumer demand in the first six months of FY21,” Demand in sectors like travel, tourism, home renovation and repairs took a significant hit during this period as many remained locked in houses and were reluctant to get any home renovation work done due to the fear of the virus,” said the company said in a statement.
During the festival season, 37% consumers said they spent Rs 1,000 - Rs 10,000, 20% said they spent Rs 10,001 - Rs 50,000 and 9% voted over INR 50,000. About 33% said they “did not spend anything”.
Asked, “how has COVID-19 and general economic condition impacted consumers’ household savings in the last eight months (April to November 2020)?”, of the 8,240 responses, 68% consumers said their household savings declined. While 28% voted “reduced by 50% or more”, 25% voted “reduced by 0-25%”.
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