Research: Slowdown's Impact on Indian Consumers

Starcom (media agency) and The Key (a qualitative research firm), have conducted a survey during December2008 and January 2009 based on 450 consumers (split equally between students, working professionals, self-employed and housewives) in the metros of Mumbai, Delhi and Bangalore about the impact slowdown is having on their lives which makes for an interesting read. The survey shows that consumers are procrastinating in their decision to buy things they want. They are content buying what they need and downtrading of luxury brands for cheaper brands is also becoming evident.Some of the key highlights of the study are:

1. The survey shows that where SEC A has been hit hard, SEC B has been largely unaffected.
2. While for Sec A customers it is a impact of slowdown but for lower income households (Sec B), the change in consumption habits is largely on account of inflation or rising prices of the household and health care expenses.
3. Sec A consumers are cutting back on luxury, holidays, purchase of car/ reality and even financial planning an investment.
   
4. Sec B customer has cut back on household consumption of food and beverage, eating out, mobile and telecommunications and consumer durable purchases.
5. Both sections have made major cutbacks on local travel commutes and jewellery.
6. Businessmen and students are postponing purchase of automotive vehicles for as long as they can. Which means upscale customers are also seeking bargain and people are shopping to fulfil needs, not wants.
7. The report said, "Down trading of brands will definitely happen in fashion and apparel. However, a category like consumer electronics will stave it off with elan and yet not suffer."
8. Women, or rather housewives, are more optimistic about the recession ending earlier than men.

via DNA and BS
Related Read:
Impact of Recession on Indian Consumer Demand data
Impact of Recession on India A Study by Indian Govt