People are ready to spend more in the festive season, most people’s income has increased: Survey – UBS Evidence Lab inside Indian consumer spending may rise this festive season

New Delhi. The festive season will begin as soon as Shraadh ends. After this, the whole country will be immersed in the celebration of festivals from Navratri to Diwali. The good news is that this time consumers are ready to spend freely. A survey by UBS Evidence Lab India has revealed that 70 percent of people are going to spend more this festive season than last year, while 18 percent people say that their expenses are going to remain the same as last year. This percentage figure has been presented on the basis of 1500 respondents included in the survey. 11 percent of the respondents say that their expenses are going to be less in this year’s festival.

Let us tell you that 1500 people from all over India between the age of 18 to 54 years were included in this survey. All these people were from Socio-Economic Classification (SEC) A and B. A and B are those categories which include people with high income and upper to mid income. Both these categories have a significant share as consumers.

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73 percent of the respondents in this survey said that they saw their income increase or remain stable, while 24 percent said that their income declined. More than 70 percent of the respondents said that their income may increase in the next 12 months. Nearly 65 percent of the respondents said that the increase in their household income was more than inflation.

Consumption related answers
About 46% of respondents are buying personal care and packaged food less compared to last year, and another 16% have not noticed any significant change. Respondents were largely neutral compared to last year with regard to purchases of home care products.

The results of the survey indicate that many people intend to buy a 2-wheeler vehicle within the next 2 years. This figure was 58% of the respondents this time, while it was 55% last year. According to this, the number of people wishing to buy a car was only 50% this time as compared to 55% last year.

This also indicates that purchase intentions for smartphones within the next 2 years remain high (61% of respondents, same as the previous survey). Purchase intentions for other consumer durables (including computers/laptops, refrigerators, ACs and TVs) also saw improvement.

Tags: Consumer and Retail Industry, Money Matters, survey report