five things that related to comsuption
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A massive spike in unemployment, economic uncertainty and declining consumer confidence has led buyers to become risk averse
As India moved to prevent the spread of covid-19 with a lockdown late March, household budgets and consumer behaviour have since shifted. After months of pantry loading, consumers are now turning more value conscious. Sanitizers, floor cleaners, packaged foods and immunity boosters have found favour among Indian shoppers. Here are five things you may want to know about the changes:
A massive spike in unemployment, economic uncertainty and declining consumer confidence has led buyers to become risk averse. They are seeking products and services that deliver value and quality. Market researcher Nielsen reported visible signs of consumers either downgrading to more affordable (mass and popular) offerings or shifting towards value for money large packs.
Euromonitor said India’s middle-income households that fall under the social economic classification (SEC) C and D—that form 58% of India’s households—are expected to see a 20% year-on-year decline in consumer spending owing to income losses. This consumer cohort accounts for 70% of total spending as of 2020. Euromonitor defines SEC D and C in India as people with annual household incomes ranging from $5,000 ( ₹3,68,734) to $45,000 (over Rs33,00,000).
The pandemic may have reset consumer habits across the globe but Indians are buying sanitizers, hand washes, floor cleaners, apart from immunity boosting products like honey and chyawanprash.
In-home cooking and snacking pushed sales of biscuit, packaged flour, rice, noodles, pasta, ready-to-cook meals, and dairy products. Absence of house help led to rise demand for small kitchen appliances, microwaves, food processors, washing machines with the more affluent even buying the pricey dishwashers.
People also bought more office furniture as work from home becomes a more permanent feature. Chairs and tables were in high demand, Euromonitor said.