Bangalore, 5th July 2023: Axis My India, a leading consumer data intelligence company, has unveiled its latest India Consumer Sentiment Index (CSI) findings, offering crucial insights into consumer spending behavior. The survey highlights increased overall household spending, especially among rural households, males, and 18-25-year-olds. While essential spending dipped slightly, the increase in non-essential and discretionary product spending was insignificant. The survey also revealed that shopkeepers and internet searches are primary sources of product information. Interestingly, there is an increasing propensity to do online shopping even in rural consumers. These valuable insights provide a comprehensive view of consumer sentiments, aiding businesses and policymakers in making informed decisions.
The July net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +7, which has decreased as compared to last month (+9).
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 5072 people across 35 states and UTs. 67% belonged to rural India, while 33% belonged to urban counterparts. In terms of regional spread, 23% belong to the Northern parts while 22% belong to the Eastern parts of India. Moreover, 26% and 29% belonged to Western and Southern parts of India respectively. 59% of the respondents were male, while 41% were female. In terms of the two majority sample groups, 31% reflect the age group of 36YO to 50YO and 27% reflect the age group 26YO to 35YO.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, “As we navigate the dynamic retail landscape of India, the trends in household spending, essential and non-essential purchases, health-related items, consumer information seeking, and online shopping habits reveal fascinating insights. The emphasis on local markets and internet searches as primary sources of information showcases the importance of traditional and digital channels alike. Furthermore, the diverse online shopping habits, particularly among the tech-savvy 18-25-year-olds, signal a need for retailers to embrace e-commerce while ensuring personalized experiences. As we witness this transformation, understanding consumer preferences becomes paramount in curating innovative offerings that cater to their evolving needs.” – Pradeep Gupta, Chairman & MD, Axis My India.
Key findings
- Overall household spending has increased for 56% of the families, which is the same as the last two months. The net score, which was +48 last month is +47 this month. The increase is slightly higher in rural households (57%).
- Spends on essentials like personal care & household items has increased for 31% of the families, which has decreased by 1% from last month. The net score, which was at +20 last month has dipped to +18 this month. Essential spends continue to increase majorly for the rural segment of the consumers (32%) and among 18-25-year-olds (38%).
- Spends on non-essential & discretionary products like AC, Car, and Refrigerators have increased for 5% of families, which is the same as last two months. The net score is 0, which was same as the last month.
- Expenses towards health-related items such as vitamins, tests, healthy food has surged for 30% of the families. This reflects a decrease in consumption by 2% 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 -19 this month. Health-related products consumption increased more for rural segment of the consumers (31%), among females (30%) and those within the age group of 26-35-year-olds (34%).
- Consumption of media (TV, Internet, Radio etc.) has increased for 18% of families, depicting a significant dip in increase media consumption percentage by 6% from last month. This decrease is depicted after an increase was reflected last month at 24% (the highest since April’23) majorly due to IPL. The overall, net score which was at +4 last month is at -4 this month. The increase in Media viewership percentage could be majorly reflected among males (20%) and among 18-25 YO which (29%) as compared to older age groups.
- Mobility has increased for 8% of the families, which is the same as last month. The overall mobility net indicator score, which was at +2 last month, is at +1 this month. Mobility is highest amongst the age group of 18-25YO at 14% which is 2% more than last month for the same age group.
On topics of current national interest
- This month Axis My India CSI survey aimed to understand the primary platform that consumers rely on to stay updated with the latest news. As per the findings, TV News Channels are the primary news source for 44% of respondents, followed by Social Media (23%) and YouTube education/news channels (18%). Newspapers accounted for only 14% of news consumption, while YouTube Shorts had 7%. TV News Channels and Newspapers are preferred majorly by viewers above 60 years while social media platforms and formats are majorly preferred by 18-25YO.
- Another key aspect explored was the frequency of movie theatre visits in recent months. The findings reveal interesting patterns in consumer behaviour, where in out of all the respondents, 49% stated that they visited movie theatres once a month, 30% twice, 8% thrice, and 13% more than three times. As a significant proportion of consumers visit movie theatres at least once a month, it could be apt to assume that a consistent interest in cinema as a form of entertainment is again rising back. This keenness is majorly witnessed amongst urban consumers (51%), and females (57%).
- When seeking information about products they intend to buy, respondents in the Axis My India survey relied on various sources. The primary sources of information were shopkeepers and local markets (36%), followed closely by internet searches (29%), indicating the significance of both traditional and digital channels. A notable 19% of respondents preferred seeking advice from friends, colleagues, or neighbours, highlighting the continued influence of word-of-mouth recommendations in purchase decisions. YouTube emerged as a source of product information for 6% of respondents, demonstrating the growing popularity of video content in informing consumer choices and Television advertisements held relevance for 5% of respondents. Only 2% refer to social media, and 1% go directly to the company website or use print media. While those above 60 years old prefer shopkeepers and local markets, 18-25YO prefer internet searches and YouTube videos. The majority of the 51-60YO prefer seeking advice from others.
- The survey further unveiled a diverse range of online shopping habits among consumers with a sizable portion yet to adopt e-commerce as their preferred mode of shopping. A significant 64% stated they never shop online. However, 11% do online shopping once a month, and 7% do so once in 6 months to 1 year. Additionally, 6% shopped online once in the last 6 months, and another 6% did so more than once in the last month. Only 3% shopped online more than once in the last 6 months, while a mere 2% engaged in online shopping almost every week. 18-25YO forms the majority segment that shops once a month (19%).
- The survey further gauged respondents’ sentiments regarding data privacy and security in the context of the increasing usage of the internet and technology in their daily lives. The findings reveal that 45% of respondents reported not being worried about data privacy and security, while 23% expressed a significant concern. Additionally, 26% reported being worried to some extent suggesting a moderate level of concern about data privacy and security. They may have a general awareness of the risks involved but may not be overly alarmed by them. A majority of 18-35YO reflect apprehension to a large extent.
- Finally, the survey also focussed on farmers’ concerns about the potential repercussions of a deficient monsoon on their farming activities in the current year. The findings revealed that 55% of farmers were highly worried, 24% expressed mild concern, 9% were optimistic about a good monsoon, and 13% expected normal monsoons. These findings highlight the apprehensions of a significant portion of farmers, emphasizing the importance of addressing agricultural challenges and potential risks associated with monsoon variability.
