Essential spends increased for 49% and discretionary spends increased for 15%, highest surge in the last 9 months – Axis My India December CSI Survey

Consumer spending patterns show 49% leaning towards mobile phone investments and 30% interested in personal mobility, notably two-wheelers.

• Overall household spending has risen for 58% of families.

• 49% lean towards mobile phone investments.

• 30% are interested in personal mobility, notably two-wheelers.

• 44% of households have increased their health-related expenses.

• 27% are aware of the Ayushman Bharat – Jan Arogya Yojana.

• 28% are both aware of and enrolled in the Ayushman Bharat – Jan Arogya Yojana.

India, December 7, 2023: Axis My India, a leading consumer data intelligence company, unveils the latest insights from the India Consumer Sentiment Index (CSI), revealing noteworthy trends in consumer behavior. The report uncovers diverse trends among Indian households, with 46% reporting increased spending and feeling more financially secure than last year. Additionally, the survey highlights recent spending habits, revealing 49% of consumers investing in mobile phones, showcasing a shift towards technology. These insights reflect India’s changing consumption patterns based on consumer spending power and lifestyle choices. The survey also sheds light on public awareness and participation in the Ayushman Bharat – Jan Arogya Yojana, a pivotal health insurance scheme by the Government of India.

The December net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +9.9, which is an increase of +0.9 from the last month.

The sentiment analysis delves into five relevant sub-indices: overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, entertainment, and tourism trends.

The survey used computer-aided telephonic interviews and included 5,143 participants from 35 states and UTs. Among them, 72% were from rural areas and 28% from urban areas. In terms of regions, 23% were from the north, 24% from the east, 28% from the west, and 25% from the south of India. Among the participants, 60% were male and 40% were female. Looking at the largest groups, 30% were aged between 36 and 50 years old, while 25% were aged between 26 and 35 years old.

Commenting on the CSI report, Pradeep Gupta, Chairman & MD, Axis My India, said, “As we analyze the recent trends in India’s economic landscape, the subtle yet significant transformations in consumer behavior and spending emerge distinctly. The evolving spending habits reveal a fascinating dynamic of necessity versus aspiration in consumer behavior. We are seeing a nuanced evolution in how households manage their finances and what they prioritize. From embracing digital technology to rethinking financial strategies, the Indian consumer is navigating an ever-changing economic environment with adaptability and foresight. The adaptability of government schemes also highlights the government’s role in spreading awareness about their initiatives as an extension of their contribution to the nation. This trend is a reflection of the current economic and political climate but is also a crucial indicator for the retail industry, signaling shifting consumer priorities and guiding future market strategies’.

Key findings

• Overall household spending has increased for 58% of the families, which is a decrease of 2% from last month. Consumption remains the same for 33% of families. The net score, which was +51 last month, has dipped to +50 this month.
• Spends on essentials like personal care and household items have increased for 49% of families, which marks an increase of 5% from last month. Consumption remains the same for 36% of families. The net score, which was at +27 last month, has surged to +34 this month.
• Spends on non-essential and discretionary products like AC, cars, and refrigerators have increased for 15% of families. Consumption remains the same for 79% of families. The net score, which was +3 last month, is +9 this month.
• Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 44% of the families, which marks an increase of 7% from last month. Consumption remains the same for 41% of families. The health score, which has a negative connotation, i.e., the less money spent on health items, the better the sentiments, has a net score value of -30 this month.
• Consumption of media (TV, Internet, radio, etc.) has increased for 23% of families, which is an increase of 3% from last month. The net score, which was -1 last month, is +2 this month.
• Mobility has increased for 8% of the families, which is an increase of 1% from last month. The net score, which was -4 last month, is -5 this month. Mobility remains the same for 78% of the families.

On topics of current national interest

• The survey provided insightful data on household income, spending, and consumption patterns, bringing to light a spectrum of sentiments regarding the nation’s economic conditions this year. 46% of the participants expressed a sense of financial upliftment in 2023 compared to 2022 in terms of financial well-being. Meanwhile, 36% still hold 2022 in higher regard, feeling that the previous year offered better financial stability. Additionally, 18% of the respondents viewed 2023 as being on par with the previous year, indicating a sense of consistency in their financial experiences.
• The survey offered valuable insights into the spending patterns of consumers over the past and upcoming six months, highlighting shifts in purchase priorities. According to the findings, a significant 49% of respondents are leaning towards investing in mobile phones, signaling a strong inclination towards technology and connectivity. Following closely, 37% of the respondents are focusing on financial prudence, with choosing a bank account being a top priority, reflecting an increased awareness and emphasis on financial management. Additionally, personal mobility emerges as a significant factor, with 30% of the respondents showing a preference for acquiring two-wheelers, underscoring the growing importance of personal transportation in daily life.
• In the wake of the BJP’s notable victories in recent state elections, the survey tapped into the public’s perception of influence in India’s political sphere. Reflecting on this political landscape, 60% of the respondents identified Prime Minister Narendra Modi as the most influential figure in 2023. This perception has been further bolstered by the Prime Minister’s active international engagements, including his pivotal role in the G20 summit and efforts towards elevating India’s presence on the global stage. These events have clearly struck a chord with many people, contributing to the increased recognition of Narendra Modi as a significant influencer this year.
• The survey delved into identifying the top milestone missions for India in a year filled with significant events, including the ICC World Cup and the G20 Summit. A significant 54% of respondents identified the Chandrayaan-3 lunar mission as the most defining milestone of the year. This sentiment is underscored by the remarkable success of Chandrayaan-3, India’s ambitious lunar mission. The event not only garnered widespread acclaim but also set a new record with 8.06 million concurrent views during its live stream, highlighting the nation’s growing prowess and interest in space exploration and scientific achievements.
• The survey revealed that a significant 62% of respondents watched the ICC World Cup 2023, showcasing the event’s wide-reaching appeal. Delving deeper into the modes of viewership, it was found that 31% of the respondents followed the matches on television, while a notable 22% of the respondents opted to watch the games on their mobile phones, highlighting the diverse ways in which audiences are consuming sports content in the digital age.
• The study delved into the average daily time spent on TV and video streaming platforms (OTT) across various time The overall time spent on TV is 65 minutes per day, compared to 61 minutes on OTT. The younger age group spends significantly more time on OTT (96 minutes per day) compared to TV (60 minutes per day).
• For those allocating less than 30 minutes, 14% of respondents reported spending their time on TV, while 15% preferred video streaming platforms (OTT).
• In the 30-minute to 1-hour category, 16% indicated TV usage, compared to 13% for video streaming platforms or OTT.
• Moving on to the 1-2 hour bracket, 24% opted for TV, while 18% chose video streaming platforms (OTT).
• The percentages decrease for longer durations, with 10% on TV and 9% on video streaming platforms/OTT for 3–4 hours.
• 2% on TV and 3% on video streaming platforms/OTT for 5-8 hours, and
• Merely 1% for both TV and video streaming platforms/OTT for 9 or more hours

This breakdown illustrates the varying preferences in media consumption habits, emphasizing a notable shift towards digital platforms, especially for shorter durations.

• Expanding on the findings regarding age-wise distribution, the data from Axis My India provides insights into the percentage of individuals within different age groups who spend ‘1-2 hours’ watching TV on a typical day:
  • 23% of the 18–25 age group dedicate this time to TV.
  • 21% of the 26-35 age group dedicate this time to TV.
  • 27% of the 36–50 age group dedicate this time to TV.
  • 26% of the 51–60 age group dedicate this time to TV.
  • 25% of people above the age of 60 dedicate this time to TV.

This suggests a fairly even distribution of TV watching habits across different age groups, with a slightly higher inclination in the 36–50 age category.

• Examining the data on a typical day’s OTT viewership, distinct patterns emerge across various age groups:
  • Among individuals aged 18–25, a notable 25% engage with OTT platforms,
  • A slightly lower yet significant 24% of the 26–35 age group do the same.
  • The prevalence decreases in the 36–50 age group, with 17% of individuals choosing OTT for their media consumption.
  • Further down the age spectrum, the 51–60 age group and those above 60 exhibit similar preferences, with 12% of both demographics tuning into OTT platforms.

These findings highlight the varying degrees of adoption of OTT platforms across different age brackets, indicating a higher affinity among younger individuals for on-demand streaming services. This suggests a fairly even distribution of TV watching habits across different age groups, with a slightly higher inclination in the 36–50 age category.

• The survey shed light on public awareness and participation in the Ayushman Bharat – Jan Arogya Yojana, a pivotal health insurance scheme by the Government of India. It was revealed that 27% of respondents are aware of the scheme but have not taken the step to enroll. This indicates a significant level of awareness about the scheme, yet it highlights a gap between awareness and action. On the other hand, 28% of respondents are aware of the scheme and have actively enrolled in it, suggesting a proactive approach towards availing of the health benefits offered.
• The survey provided insights into the public’s awareness and adoption of the 14-digit Ayushman Bharat Health Account (ABHA) card, a key component of India’s health digitization efforts. It revealed that 84% of respondents are unaware of the ABHA card, indicating a significant knowledge gap in this critical health initiative. This suggests a considerable gap in public knowledge regarding the ABHA and its benefits. On the other hand, 9% of respondents have actively obtained the ABHA card, indicating some level of engagement and uptake among the populace. Meanwhile, 7% of respondents, although aware of the ABHA, do not possess the card.
• With the five state elections seen as a prelude to the 2024 Lok Sabha elections, the December CSI Report highlights the keen interest among the public in political trends. A significant 67% of respondents had expressed their intent to watch the exit polls of these crucial state elections, indicating a high level of engagement and curiosity about the potential outcomes and their implications. In contrast, 32% of the surveyed population is not planning to tune in for the exit polls, suggesting varying levels of political interest and engagement across the public.

Also read: Organizations should be driven based on people and processes instead of emphasizing technology

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