New Delhi: Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. The May report reveals that while spends on essential items have decreased slightly, spends on non-essential and discretionary items have seen a small uptick, which has resulted in an overall increase of Consumer Sentiment Index. Interestingly, there has been a surge in expenses towards health-related items, especially among women and the age group of 26-35. The survey also sheds light on conscious purchase behavior, with a rising preference for environmentally friendly and sustainable products. The findings also indicate a growing interest in Electric Vehicles (EVs), with 11% of respondents planning to buy a 2-wheeler and 6% planning to buy a 4-wheeler EV.
The May net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +09, which has increased by 1 point compared to last month. 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 10,206 people across 35 states and UTs. 64% belonged to rural India, while 36% belonged to urban counterparts. In terms of regional spread, 26% belong to the Northern parts while 25% belong to the Eastern parts of India. Moreover, 29% and 19% belonged to Western and Southern parts of India respectively. 64% of the respondents were male, while 36% were female. In terms of the two majority sample groups, 32% reflect the age group 36YO to 50YO and 29% reflect the age group of 26YO to 35YO.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, said “As we look ahead, it’s clear that consumer behavior has evolved significantly in terms of spending patterns. The latest data shows that households have increased their overall spending, with a particular uptick in non-essential items. At the same time, there has been a rise in conscious purchase behavior, with a growing number of consumers willing to pay more for environmentally friendly and sustainable products. Additionally, the preference for electric vehicles is on the rise, as consumers become more conscious about their impact on the environment. Retailers and brands need to keep up with these trends and adjust their strategies accordingly to cater to the evolving needs and preferences of their customers.”
Key findings
• Overall household spending has increased for 56% of the families, which is the same as last month. The net score, which was +49 last month has decreased to +48 this month. The states, which reflected the highest increase, are West Bengal with 70%, followed by Andhra Pradesh and Telangana with 61%. The age group 26-35 displayed the highest increase (59%).
• Spends on essentials like personal care & household items has increased for 32% of the families, which reflects a dip by 1% from last month. The net score, which was at +21 last month, remains the same this month. Essential spends has increased more for families with a monthly income of INR 21-30,000 (37%). Karnataka reflects the highest essential spends with 45%.
• Spends on non-essential & discretionary products like AC, Car, and Refrigerator have increased for 5% of families; this reflects an increase of 1% from last month. The net score, which was at 0 last month, is +1 this month. Discretionary spends has increased more for families with a monthly income of INR 30,000 and above (8%). Rajasthan reflects the highest non-essential spends with 10%.
• Expenses towards health-related items such as vitamins, tests, healthy food has surged for 31% of the families. This reflects a decrease in consumption by 1% 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 -21 this month. Health related products consumption increased more for female (32%) and among age group of 26-35 (about 33%).
• Consumption of media (TV, Internet, Radio etc.) has increased for 21% of the families, which is an increase by 2% from last month. The overall, net score is at 2 this month. Media viewership has increased more among males (22%) and among 18-25 YO which (30%) as compared to older age groups.
• Mobility has increased for 7% of the families, which is an increase by 1% from last month. The overall mobility net indicator score, which was at -1 last month, is at +1 this month. 11% of the youngsters from the age group of 18-25, has gone out more in the last month as compared to other age groups.
