Around the world, people are concerned about the rising cost of living and their budgets. According to the 2023 PwC Global Consumer Insights Pulse Survey, 74% of Indian respondents indicate they are worried about their own financial status, compared to 50% internationally.
Details about according to a PwC survey, 63% of Indian consumers reduced their non-essential spending
According to the report, 63% of Indian consumers are reducing their non-essential spending. 9,180 people from 25 different countries participated in the poll and gave their opinions. 500 Indian respondents from 12 metropolises and tier-1 and tier-2 Indian cities participated in the survey there (Mumbai, Delhi-NCR, Bengaluru, Visakhapatnam, Chennai, Kochi, Kolkata, Nagpur, Jalandhar, Hyderabad, Meerut and Rajkot).
“PwC’s recent Global Consumer Insights Survey for India hammers home the crucial message of continued financial stress in the lives of the consumers, where 75% of them are highly concerned about their financial status,” said Ravi Kapoor, Partner and Leader – Retail & Consumer, PwC India. Spending on luxury items and highly discretionary areas of electronics may be constrained by this attitude. Customers will continue to demand top-notch purchasing experiences across both physical and digital channels, while firms will have challenges in cutting costs, improving availability, and “getting local.” The unmistakable increases in digital channel adoption and the intention to spend more on vacation in the upcoming months continue to be the silver lining in this situation. Disrupting the supply chain and changing customer behaviour
Consumer behaviour is being impacted by supply chain challenges, which are leading to longer and busier lines at retail locations (35%), larger price increases (which account for 50% of Indian consumers’ responses), and product availability (28%).
Consumers are now preparing to cut back on their spending over the next six months as a result of the increase in the cost of living. According to the survey, the highest drops are anticipated in luxury/premium/designer products (38%), virtual online activities (32%), consumer electronics (32%), and fashion products (clothing and footwear) (31%).
The least anticipated drop in spending was recorded for travel (30%) and food (21%). More than 88% of consumers are willing to pay more for a product made locally, with recycled, sustainable, or environmentally friendly materials (87%) or by a business known for its ethical business practises (87 per cent).
Consumers continue to be concerned about data privacy despite the surge in internet buying. When communicating with social media firms, third-party/portal travel websites (54%), healthcare providers (59%), and consumer companies (58%), 65% of respondents are very or very concerned. As a result, 37% of respondents have chosen not to receive communications from these organisations, and 38% have decreased their overall connection with these companies. 41% of respondents do not give more personal data than is necessary.
