According to the 2023 PwC Global Consumer Insights Pulse Survey, 63% of Indian consumers have completely cut back on non-essential spending. In India, 12 major Indian cities, Tier 1 and Tier 2 cities (Mumbai, Delhi NCR, Bangalore, Visakhapatnam, Chennai, Kochi, Kolkata, Nagpur, Jalandhar, Hyderabad, Meerut, Rajkot) 500 respondents participated in the survey. Of these, 57 percent of respondents were male and 43 percent were female.
Consumers around the world are plagued with concerns about their cost of living and personal finances. About 74% of respondents in India say they are concerned about their personal financial situation, as opposed to 50% of them globally.
The survey found that most Indian consumers expect to reduce their spending across all categories surveyed over the next six months. This indicates a significant reduction in planned spending across all categories since the last pulse survey in June 2022. and fashion are expected to see the largest reduction in consumer spending over the next six months, while the grocery segment is expected to see the least decline.
Share insights from your research, Ravi Kapoor, Partner and Leader – Retail and Consumer, PwC India, Said, “The latest Global Consumer Insights survey conducted by PwC for India found that 75% of consumers are very concerned about the economic situation, indicating continued economic stress in their lives. A key message is underscored: This sentiment may curb spending in highly discretionary categories of electronics and luxury goods.Consumers want brands to cut costs and increase availability. We will continue to seek world-class buying experiences across both physical and digital channels by increasing customer satisfaction and reducing the effort to “go local”. A clear increase in channel adoption and a desire to spend more money on travel. “
Key trends revealed by the survey results:
The cost of living puts pressure on consumer confidence
Globally, consumers are shifting their spending habits to stores and online as rising costs of living and supply chain disruptions impact product availability and delivery. As a result, almost half (45%) say they buy a particular product during an offer or promotion, 44% look for better value retailers, and 38% use comparison sites. Looking for cheaper alternatives, 36% buy in bulk to save costs. 33pc saves by buying retailers personal brands.
Supply chain disruptions are changing consumer behavior in-store and online
Half (50%) of Indian consumers say rising prices remain the most frequent problem they experience when shopping in stores. influence consumer behavior.
Luxury/Premium Products Industry Sees Decline in Consumer Spending
Consumers plan to cut spending over the next six months across all retail categories surveyed, including luxury/premium or designer products (38%), virtual online activity (32%), and consumer Electronics (32%), and fashion products are expected to see the biggest declines. (Clothing and footwear) (31pc). However, the appetite for future spending remains, with 38% indicating an interest in entertaining themselves and others, and 54% viewing them as a better quality. Travel (30%) and grocery (21%) reported the fewest planned spending cuts.
Local Voices (Consumers demand sustainable products)
Despite planned spending cuts and a challenging economic environment, consumers say they are willing to pay more for sustainable products. Overwhelmingly more than 88% are locally produced/sourced, made with recycled, sustainable or environmentally friendly materials (87%), or by companies with a reputation for ethical practices They are willing to pay more for the products they manufacture (87%). .
Metaverse: Strong Early Adoption, Executives Recognize Importance of Risk Management, Cybersecurity and Governance
Adoption of the metaverse as a shopping channel is still in its early stages, but the media is underutilized, with only a quarter (23%) of Indian respondents familiar with the term. Most of these users are using the Metaverse primarily for virtual reality (VR). This means playing games and watching movies (20%), experiencing virtual worlds through retail environments and concerts (13%), and purchasing digital products. , Non-Fungible Tokens, or NFTs (17pc), etc. Millennials (36%) are most likely to use the metaverse, especially in countries such as India (48%), Vietnam (43%) and Hong Kong (42%).
All the while, consumers are increasingly fed up with data privacy as the volume of online shopping continues to grow. Sixty-five percent of respondents said they were very or very disappointed when interacting with social media companies, third-party/portal travel websites (54%), healthcare (59%), and consumer companies (58%). I am concerned about As a result, 41% of respondents did not share personal data more than necessary, 37% opted out of being contacted by these companies, and 38% opted out of all interactions with these types of companies. is decreasing significantly.