In November 2023, Axis My India, a leading consumer data intelligence company, published the India Consumer Sentiment Index (CSI), revealing positive trends in consumer sentiment. The net CSI score increased to +9, a noteworthy uptick of +1 over the preceding two months.
Household Spending Trends in November 2023: A Detailed Analysis
The report also uncovered significant shifts in household spending patterns. Notably, 60% of families reported increased overall expenditure, marking a 7% rise compared to the previous month. Meanwhile, 31% of families reported unchanged consumption levels.
Regarding essential items such as personal care and household products, 44% of families experienced an increase in spending, a 1% rise from the previous month, with consumption remaining steady for 40% of families. The net score surged from +26 to +27.
In the realm of non-essential and discretionary items like air conditioning, cars, and refrigerators, spending increased for 8% of families, while 86% maintained consistent consumption levels. This resulted in a net score rise from +1 to +3.
Expenses on health-related items, including vitamins, tests, and healthy food, saw a 1% increase for 37% of families, while consumption remained unaltered for 48% of families. Notably, the health score, where lower spending on health items correlates with better sentiments, reached a net score value of -21.
Consumer Behavior and Shopping Preferences in the November 2023 Survey
The report also highlighted that media consumption (TV, Internet, Radio, etc.) remained constant for 20% of families, mirroring the previous month’s findings. The net score remained at -1.
In terms of mobility, 7% of families reported increased mobility, though this represented a 1% decline from the previous month. The net score, which stood at -2 previously, now registers at -4, while mobility remained unaltered for 82% of families.
The survey also delved into consumer attitudes towards shopping. A quarter of respondents, 25%, expressed enthusiasm about increasing their shopping compared to the previous year, while 23% were committed to maintaining their past purchase levels.
Moreover, the survey revealed that 82% of respondents showed a strong preference for local physical retail stores near their homes, indicating a significant sentiment supporting local businesses. In contrast, 10% of respondents favored online shopping platforms for festive purchases, and 8% expressed a preference for brand-specific physical stores, underscoring diverse consumer shopping preferences.
Additionally, the survey disclosed that 22% of respondents had a clear intention to actively participate and make purchases during e-commerce-led shopping festivals.
When it comes to payment preferences during the festive season, the survey found a blend of tradition and modernity. A substantial 79% of respondents favored cash transactions, while 16% showed an inclination towards using digital wallets. Additionally, 5% opted for the convenience of debit/credit cards and online banking for transactions.
Furthermore, the survey reported that 19% of respondents had received or anticipated receiving a salary bonus due to Diwali celebrations. The survey’s methodology involved computer-aided telephonic interviews and included 4,980 participants from 27 states and 5 Union Territories. Among the participants, 69% hailed from rural areas, with the remaining 31% from urban areas. Geographically, the distribution included 23% from the North, 25% from the East, 28% from the West, and 23% from the South of India.
In terms of demographics, 65% of the participants were male, while 35% were female. The age groups were diverse, with 34% falling between 36 and 50 years old and 27% falling between 26 and 35 years old.
