Axis My India has unveiled the latest insights from the India Consumer Sentiment Index (CSI), shedding light on significant media consumption trends. The report says that 20 percent of families are broadening their media horizons, with platforms such as TV, Internet, and Radio noting a 1 percent surge in consumption from last month.
In the realm of festive promotions, social media ads stand out, drawing 34 percent of consumers, while word-of-mouth continues to be a trusted source for 32 percent of respondents. This sentiment is amplified with 50 percent leaning on social media for electronic and gadget deals.
The October net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +8, which is the same as compared to last 2 months.
The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, entertainment & tourism trends.
The survey used Computer-Aided Telephonic Interviews and included 5452 participants from 35 states and UTs. Among them, 66 percent were from rural areas and 34 percent from urban areas. In terms of regions, 32 percent were from the North, 20 percent from the East, 39 percent from the West, and 9 percent from the South of India. Among the participants, 64 percent were male and 36 percent were female. Looking at the largest groups, 29 percent were aged between 36 and 50 years old, while 28 percent were aged between 26 and 35 years old.
Commenting on the CSI report, Pradeep Gupta, chairman & managing director, Axis My India, said, “In the vibrant tapestry of today’s consumer interactions, it’s heartening to see the pivotal role that digital platforms, especially social media, play in shaping perceptions and decisions. This festive season brings to light a harmonious blend of tradition and modernity, with consumers valuing personal recommendations and word of mouth while embracing the convenience and versatility offered by online interactions. As brands craft their narratives, it is imperative to recognize this balance, fostering genuine, meaningful conversations across both traditional and digital platforms. This diversity in behavior underscores the importance for brands to provide varied and tailored approaches, catering to both the discreet shopper and the enthusiastic sharer, ensuring every consumer feels understood and valued in this festive journey.”
Key findings
· Consumption of media (TV, Internet, Radio, etc.) has increased for 20 percent of families, depicting a slight increase in media consumption percentage by 1 percent from last month. The net score, which was -4 last month, is at -1 this month. Media consumption remains the same for 59 percent of families.
· Spends on essentials like personal care & household items have increased for 43 percent of families, which marks an increase by 2 percent from last month. Consumption remains the same for 40 percent of families. The net score, which was at 22 last month, has surged to +26 this month.
· Spends on non-essential & discretionary products like AC, Car, and Refrigerators have increased for 9 percent of families, which reflects a spike from last month by 3 percent. Consumption remains the same for 84 percent of families. The net score, which was -1 last month, is at +1 this month.
· Expenses towards health-related items such as vitamins, tests, healthy food has surged for 36 percent of the families. This reflects an increase in consumption by 2 percent from last month. Consumption remains the same for 48 percent of families. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -19 this month.
· Mobility has increased for 8 percent of the families, which is a dip by 1 percent from last month. The net score, which was -1 last month, has dipped to -2 this month. Mobility remains the same for 82 percent of the families.
· Social media ads emerge as a highly effective channel, with a significant majority leveraging them to stay abreast of festive deals and offers, showcasing the growing influence of digital platforms in today’s festive market. 50 percent of respondents rely on social media advertisements for updates on offers related to electronics and gadgets. Similarly, 42 percent and 41 percent of respondents tap into these ads for offers on discretionary spends and home decor. 36 percent of respondents stay updated on festive offers and deals for clothing and accessories through social media ads, emphasizing the platform’s significance. Interestingly, traditional word-of-mouth still holds sway for 35 percent of respondents, particularly when it comes to food and groceries, emphasizing the blend of digital and traditional in today’s market dynamics.
· Respondents demonstrated a preference for shopping from local markets and vendors, championing the “vocal for local” ethos. 62 percent of participants choose local outlets for their home décor and furnishing needs. Similarly, 58 percent of participants opt for local sources for their food and grocery shopping, while 53 percent of participants look locally for clothing and accessories. Notably, even for more substantial discretionary purchases like cars, ACs, and refrigerators, a significant 39 percent of participants still favour in-store shopping.
· The survey delved into participants’ perspectives on big ticket spending during the festive season. 77 percent of participants are opting to refrain from making any big-ticket purchases during this festive time. 18 percent of participants are demonstrating a willingness to engage in significant spending, showcasing a sense of optimism and economic resilience. Meanwhile, 4 percent of participants are still contemplating their spending decisions, reflecting a sense of careful consideration during the festive season.
· In the landscape of festive shopping, 78 percent of respondents gravitate towards cash for their transactions. 16 percent of respondents are inclined to embrace digital wallets to settle their festive purchases, while 6 percent of respondents opt for the convenience of debit/credit cards and online banking for their seasonal transactions.
· The 84-day festival season welcomes sales events such as Amazon’s Great Indian Festival and Flipkart’s Big Billion Day, enticing shoppers to delight in making high- value purchases during this celebratory period. 20 percent of participants hold off for these exceptional sales to benefit from the abundant discounts and offers available. Meanwhile, 71 percent of participants stick to their regular spending habits, unaffected by the festive season’s sales and promotions. Furthermore, an opportunistic 9 percent of participants make substantial purchases, contingent on the appealing discounts presented during the festive season sales.