Mumbai: More than half (65 per cent) of consumers in India believe they are currently living with uncertainty, and one in ten expect it to last at least five years, according to new research from Accenture. The research is the latest in a series of consumer surveys that Accenture has been conducting to test the pulse of consumer outlook and sentiment since the start of the pandemic that has propelled an “Era of Volatility”, where an ongoing state of uncertainty is spurring people to change behaviours suddenly and often in unexpected or contradictory ways.
“The Resilient Consumer”
The survey - of more than 10,000 consumers in 16 countries including India — found that despite lasting uncertainty, the “resilient consumer” is adjusting to continued disruption by seeking out ways to protect and control what’s important to them. In addition, the majority appear bullish about their financial situation, with 88 per cent of consumers in India expecting their disposable income to stay the same or improve in the next 12 months.
Resilient spend categories
A strong indication of consumer resilience is their intention to spend more. When asked how their expected spend will change over the next six to 12 months, respondents in India said they plan to spend more across 11 of 15 categories – such as wellness, clothing and apparel, beauty, and essentials like healthcare and groceries.
Accenture in India managing director and lead – strategy & consulting Vineet R Ahuja said, “Our survey reiterates the optimism of Indian consumers that is reflected in their purchase decisions across categories. To stay relevant and in step with evolving consumer demands, companies need to effectively use data and analytics to provide meaningful personalised offerings in real-time especially in an era of volatility. This consumer-centric approach requires a continuous reinvention strategy to stay agile and build forward-looking capabilities.”
Health is a top priority for Indian consumers and 79 per cent intend to maintain or increase spend on wellness in the next one year. 94 per cent of consumers in India are willing to provide their personal data with at least one kind of company in exchange for meaningful health and wellness products and services with 87 per cent of consumers interested in personalised offerings.
After a year of strong growth for the travel industry, 70 per cent of consumers in India plan to sustain or increase their current spending on leisure travel in the next year, with 76 per cent planning leisure travel and nearly half (46 per cent) planning two or more leisure trips in the coming year. This signals that consumers still see travel as an essential part of their lives.
Companies must anticipate and proactively prepare for sharp and sudden shifts
A separate Accenture macroeconomic analysis warns that the persistence of inflation, high interest rates, and growing income and employment uncertainty, could further test the resilience of consumer spending in the coming months.
The consumer pulse survey highlights that consumers with resilience are not naïve about the state of the world. 67 per cent in India say that challenges in recent years have created opportunities for them, and 77 per cent are trying new experiences or adopting new habits to improve their lives.
Resilient consumers, resilient values
The environment is a top concern for Indian consumers with 57 per cent saying they are more or equally concerned about the environment than they are about their personal finances. The survey also shows nearly all consumers in India (90 per cent) have increased sustainable shopping behaviours in the last 12 months, such as only buying what they need, taking their own bags to the store, buying better quality goods that last longer, repairing or upcycling what they have, and buying reusable or refillable products.
