New Delhi [India], May 25 (ANI): Indian consumers are prioritising their finances amid the Covid-19 pandemic and becoming more savings oriented, according to a new report by professional services firm KPMG.
Nearly 85 per cent of respondents surveyed by KPMG said they are likely to stick to their savings plan even with a 10 per cent fall in their income.
And 70 per cent of them across all age groups said are concerned about their future finances. More than 50 per cent of those surveyed said they started investing more in saving instruments post-pandemic.
KPMG surveyed 2,164 respondents across urban and semi urban markets over two phases for third edition of ‘Me, My life, My Wallet’ India findings survey report.
Harsha Razdan, Partner and Head of Consumer Markets and Internet Business at KPMG in India, said consumer sentiments have been changing manifold over the past few months in current scenario.
“Going forward, organisations need to evaluate and invest in studying consumer profiles, keeping in mind the larger picture. We are hopeful that this report will introduce business leaders to such consumer behaviour changes and help them traverse their decisions meaningfully.”
Abhijeet Ranade, Partner of Business Consulting at KPMG in India, said the typical Indian consumer has gone past traditional definition of being price conscious.
“Today consumers are considering intangible assets such as brand’s goodwill, equity, ethics and purpose more while making their purchase decision. The rewards for firms who are able to comprehend, acknowledge and act on this mind shift are substantial,” he said.
The report said unexpectedness, scale and severity of the global pandemic has led to increased anxiety about personal finances.
Especially for youths who are making a foray in the job market, lack of prior work experience (and therefore savings) combined with a severely compromised economic outlook makes their situation particularly precarious.
The pandemic has brought about significant shifts in global consumer behaviour. In India, the current surge is manifesting in different ways, prompting Indian households to scrimp on discretionary expenses as they focus on essentials and save up for any unexpected medical expenses.
KPMG said its findings observed similar saving sentiments and spending patterns running across tier-1 and -2 cities.
“Close to 75 per cent of tier-1 city respondents and 63 per cent in tier-2 cities gave more priority to their future finances over current finances, indicating the saving sentiment across all city segments,” it said.
“Indians, across all ages, have quite easily become conversant with video calling, net banking, online grocery shopping, and streaming platforms. This is not a purely urban phenomenon.”
The report said around 67 per cent of respondents are uncomfortable with brands that track digital activity for greater personalisation while 47 per cent are willing to pay a premium for data privacy. (ANI)