’60 per cent Indian households are ready to spend during festivals’

According to a survey by community social media platform LocalCircles, consumer sentiment has improved 100% in the past four months, with three out of five Indian households expressing their intention to separate during festivals.

Nearly 60% of households surveyed in September said they are ready to loosen their purse strings this festive season, up from just 30% in May, when LocalCircle asked participants if they would be willing to make discretionary purchases over the next 12 months. Ready to do, your own mood of consumer survey.

Local Circles received over 115,000 responses from over 38,000 households in 396 districts, with 63% male and 37% female participants. While 44% were from metros and tier-1 cities, 31% were from tier-2 districts, and 25% were from tier-3, tier-4 and rural areas.

Traditionally, Indian consumers have tended to shop for big tickets during festivals in October and November.

During Durga Puja, Dussehra and Diwali, people shop for clothes, home furnishings and gifts.

LocalCircle said a drop in new COVID cases across India and easing of mobility restrictions are expected to help categories including smartphones, consumer electronics and fashion and beauty perform well during the festival.

The fact that at least 60% of households are planning to spend shows that the economic uncertainty prevailing during the peak of the pandemic in May has eased, it said.

In its August survey, the company had said that 59 per cent of the respondents were likely to meet a family member during the festive period of September and October.

The latest findings show that gift giving is likely to be strong, with nearly half of survey participants (48%) likely ordering online and 42% saying they would buy them locally.

Nevertheless, given the ongoing pandemic, consumers will remain cautious about “budgeting” and “safety” while making purchases.

The long-running lockdown has changed the habits of consumers, who shopped online in a big way.

Many people started using digital payments in lieu of cash for fear of infection and took “no-contact” delivery.

So, when asked how overall home buyers would shop this festive season, 52% said they would order online or get home delivery through local stores.

In addition, the pandemic hit household incomes due to job losses and pay cuts.

When asked about the most important purchase criteria, 35% of participants said it would be “budget/price”, and 35% said “safety”.

In fact, 49% of respondents said they would buy only where they found value.

In the product category, 55% of big shoppers this festive season are likely to spend on smartphones and consumer electronics, a survey by LocalCircles found.