Wary consumers rein in spending

NEW DELHI: The virulent second Covid-19 wave that is wreaking havoc in India is prompting consumers to cut back on discretionary spending, prioritise their health, shop online, and buy only essential goods, a trend that could take months to normalise, according to companies.

Consumers in India have once again turned to “cautious consumption”, Deloitte said on Wednesday after it released findings of a 30-day global consumer survey. Indians accounted for the most number of people who reported feeling anxious during the second wave, among 18 countries surveyed by Deloitte.

“Spending intent shows consumers are focusing more on non-discretionary items as compared with the previous waves of the survey. About 48% consumers show net spending intent towards healthcare, 33% towards medicines, 42% towards internet, 47% towards groceries, and 44% towards household goods, indicating that consumers want to focus on non-discretionary spends in the time of crisis,” Deloitte said. The survey findings reflect heightened consumer apprehensions, which are at the core of their decision-making, said Porus Doctor, partner and consumer industry leader, Deloitte Touche Tohmatsu India Llp. Worsening Covid situation is is prompting consumers to stock up on essentials.

Consumers are in no mood to experiment, said Venkatesh Vijayaraghavan, CEO and director, personal care and alliances, CavinKare. “The euphoria that we saw around indulgent products in the initial phase (last year) we may not see that in this round,” said Vijayaraghavan. This, he said, is translating into lower sales of indulgent snacking, dairy beverages and skincare products.