Despite high inflation and erratic summer season, with the onset of the festive season, manufacturers have begun their investments based on higher consumer spending, found a survey by Local Circles.
As per Centre for Monitoring Indian Economy (CMIE), the Index of Consumer Sentiments (ICS) shrunk by 0.5 per cent in August and it continued in the September first week (down 3.1 per cent).
The survey found that 35 per cent of the 10,992 respondents do not wish to spend this festive season, 3 per cent households are planning to spends Rs 100,000 or more, 9 per cent intend to spend between Rs50,000 to Rs 100,000, 15 per cent between Rs 20,000 to Rs 50,000, 6 per cent between Rs 10,000 to Rs 20,000 and a much larger number of 17 per cent of respondents wish to spend between Rs. 5,000 and Rs 10,000 and 9 per cent may spend up to Rs 2,000.
Whereas, one in three households are planning to spend over Rs 10,000 this festival season.
As per data, 31 per cent households are looking for value for money purchases and 31 per cent are looking for quality products. As covid prevalence reduces 49 per cent respondents plan to visit physical stores/markets this year while 38 per cent are likely to order via e-commerce or via local stores and take home deliveries. The stores are however continuing to put their catalogue online or make them available through apps to woo consumers.
An increase of 20 per cent in consumers likely to be seen in stores/markets this festival season as compared to last year.
Pooja supplies and festival groceries are going to be the top areas of spending with 13 per cent of household spending on home renovations and furnishings. Whereas 12 per cent on beauty and fashion.
CRISIL in its report, forecasted that the consumer durables sector in India will see revenue growth of 15-18 per cent, led by a 10-13 per cent increase in volume. It also expects demand to be driven by both urban and rural segments, though rural demand will come into play in the second half of the fiscal year.