India’s shopping habits are being influenced by rising costs of goods and services

India's shopping habits are being influenced by rising costs of goods and services

However, the survey which was conducted over 1,000 Indian consumers in February 2022, ”raises concern over the rising cost of goods and services that is impacting their ability to purchase goods and is affecting their purchasing decisions,” it said.

According to an EY survey, the majority of Indian consumers are optimistic about their financial status in the coming year, but are concerned about growing costs of products and services, which is influencing their purchasing decisions. Furthermore, according to the findings of the ninth edition of the EY Future Consumer Index for India, worry about managing rising living costs is prompting over 80% of Indians to save more money. The Index for India confirms Indian consumers’ “good outlook,” with 77% expecting favourable developments in their financial status in the next year. This is higher than their global peers, who are at 48%, according to the research.

”Emerging markets are feeling the pinch strongly, with 62 per cent citing ‘affordability’ affecting their choices (South Africa 77 per cent, India 64 per cent, Brazil 63 per cent, China 42 per cent), compared with 45 per cent of respondents from developed markets (the US 50 per cent, Canada 52 per cent, the UK 42 per cent, France 40 per cent),” said a statement from EY on the findings of the report.

In India, this impacts lower-income earners the most (72 per cent), followed by the high-income group at 60 per cent, and the middle-income group at 58 per cent, it said. ”Uncertainty around managing rising living costs is driving over 80 per cent in India to save more money than in the past, with 50 per cent of all respondents have made it a goal already to save rather than spend,” it said.

Moreover, health and wellness continue to be the focal point and Indian consumers are willing to pay a premium for high quality and organic food, even amidst inflationary pressure. ”More than half (54 per cent) of the respondents in India have made physical health and wellness a goal for the next 2-3 years. 80 per cent of the Indian respondents shall be more cautious about physical health in the long-term, followed by mental health at 78 per cent,” the report said.

EY India Partner & National Leader – Consumer Product and Retail sector Angshuman Bhattacharya said experience seeking consumers are less loyal, and with increasing price sensitivity and an inflationary environment, companies would need to toil harder to retain them. ”This calls for FMCG companies to look at their revenue and margin waterfalls and squeeze outspends across the value chain to drive profitability,” it said.

The consumer priorities have shifted to better self and better environment, post-pandemic, he said. ”This behavioural change will drive the buying decision in the long-term. Customers are getting increasingly environmentally conscious and are asking the brands that sell to them, to demonstrate the values that align with their own.” The EY Future Consumer Index tracks changing consumer sentiment and behaviours across time horizons and global markets, identifying the new consumer segments that are emerging.

The ninth edition of the EY Future Consumer Index surveyed 18,000 consumers across the US, Canada, the UK, France, Germany, Australia, New Zealand, Japan, China, India, Brazil, Saudi Arabia, Denmark, Sweden, Finland, Norway, Indonesia, Italy, Spain, Mexico, South Africa, Chile (new), Argentina (new) and Thailand (new) between January 28 and February 15, 2022.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
According to inside information, SMBC Aviation is close to completing a $7 billion merger with rival Goshawk
According to inside information, SMBC Aviation is close to completing a $7 billion merger with rival Goshawk
SMBC Aviation Capital, which is owned by a consortium including Japan’s Sumitomo Corp and Sumitomo Mitsui Financial Group, has a fleet of more than 750 ...
As Musk suspends the takeover, U.S. stock futures rise and Twitter falls
As Musk suspends the takeover, U.S. stock futures rise and Twitter falls
Fed Chair Jerome Powell repeated on Thursday his expectation that the central bank will raise interest rates by half a percentage point at each of its next ...
Escorts fourth quarter net profit drops 28% to Rs 190 cr, impacted by lower sales
Escorts fourth quarter net profit drops 28% to Rs 190 cr, impacted by lower sales
For the quarter ended March 2022, tractor volumes were at 21,895 units, down 32.8 per cent as against 32,588 units in the year-ago period, the company said. ...
Walmart and Amazon branded infant formulas are expected to be in short supply for the rest of 2022
Walmart and Amazon branded infant formulas are expected to be in short supply for the rest of 2022
At the request of the U.S. Food and Drug Administration, Perrigo is focusing on four items, the store-brand versions of Similac Pro Sensitive and Pro Advance ...
Tech Mahindra Q4 net up 39.2% YoY to Rs 1,506 cr, up 10% sequentially
Tech Mahindra Q4 net up 39.2% YoY to Rs 1,506 cr, up 10% sequentially
For the full year Tech Mahindra almost reached the revenue mark of $6 billion. For FY22 the company reported revenue of $5.99 billion. India’s fifth largest ...
Tesla halts India entry plan after tariff deadlock
Tesla halts India entry plan after tariff deadlock
But the Indian government is pushing Tesla to commit to manufacturing locally before it will lower tariffs, which can run as high as 100% on imported ...
Nissan says it's too early to predict EV unit spin-off
Nissan says it’s too early to predict EV unit spin-off
“It’s too early to consider because of our diversified market portfolio and diversified product portfolio,” Nissan COO Ashwani Gupta said. It is too soon to ...
As Musk puts the deal on hold, futures rise and Twitter falls
As Musk puts the deal on hold, futures rise and Twitter falls
“The timing of it is interesting. We’ve just had a couple of rough weeks in the markets,” said Fiona Cincotta, an analyst at City Index in London. “It isn’t ...
A broad recovery concludes a difficult week on Wall Street
A broad recovery concludes a difficult week on Wall Street
Despite the day’s gains, the S&P 500 and the Nasdaq posted their sixth consecutive weekly loss, the longest losing streak since fall 2012 for the S&P ...
UCO Bank Q4 net profit jumps more than 3 times to Rs 312 cr as bad loans fall
UCO Bank Q4 net profit jumps more than 3 times to Rs 312 cr as bad loans fall
For the full fiscal FY22, the bank’s net profit grew more than five times to Rs 930 crore from Rs 167 crore in FY21. State-owned UCO Bank on Friday posted ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo