Survey, Retail News, ET Retail

54% face loss in income, 67% cut spends: SurveyBENGALURU: The lockdown has hit consumers hard, forcing them to change their spending pattern.

A survey on Indian consumer sentiments conducted amid the lockdown by management consulting firm McKinsey showed that 54% people have seen a loss in income and 67% have cut back on their spending.

Grocery, household supplies, and at-home entertainment areas are the areas where consumers indicated they are going to continue spending. Consumers are cutting back their spending on non-essentials like apparel, accessories, footwear, alcohol, snacks, food-takeout & delivery, consumer electronics, personal care services, vehicle-purchase, and out-of-home entertainment.

In the survey, conducted between April 10 and 13, 57% respondents said they had witnessed a loss in household savings in the past two weeks and 55% felt they will continue to lose out for the next two weeks. But 58% feel the economy will bounce back stronger than before in 2-3 months compared to about 52% in a March-end survey.

The coronavirus outbreak will cause further change in the channels of shopping. Purchase of household supplies, grocery, personal-care products, entertainment and media will expand online.

Some sectors like apparel, alcohol, tobacco, jewellery and snacks are likely to be offline-focused. Before the lockdown started, a McKinsey report had shown a 40% rise in consumer spend at online grocers, surpassing traditional retail formats.

Only local kirana shops matched this rise in spend due to proximity to consumers amid the lockdown.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *