More than 77% of Indian consumers expect their financial situation to improve: EY report
According to the ninth edition of the Future Consumer Index of accounting firm Ernst & Young, 77% of Indian consumers expect a positive change in their financial situation and in the next one year. The report noted that for India, the perception of a better financial situation is higher than that of their global counterparts, which is estimated at 48 per cent in the report.
More than 1,000 Indian consumers were surveyed by EY in February 2022, and the report raises growing concerns about the rising prices of goods and services that are affecting consumers worldwide, especially purchasing power of goods, ultimately influencing their purchasing decisions.
As a result, emerging markets are feeling the pinch, with 62 percent citing purchasing power by influencing their preferences (South Africa 77 percent, India 64 percent, Brazil 63 percent, China 42 percent) compared to 45 percent of respondents from developed markets (US 50 percent, Canada). 52 per cent, UK 42 per cent, France 40 per cent). The report further shows that in India, low-income earners are most affected (72 per cent) by rising costs, followed by the high-income group at 60 per cent and the middle-income group at 58 per cent.
“Consumers seeking experience are less loyal, and with increasing price sensitivities and an inflationary environment, companies need to work harder to retain them. It urges FMCG companies to look at their revenue and margin falls and reduce costs across the value chain for profit, ”said Angashuman Bhattacharya, Partner and National Leader, Consumer Products and Retail Sector, EY India.
According to the YY report, more than 54 per cent of respondents in India have made physical health and wellness a goal for the next 2-3 years, with 80 per cent of Indians saying they would be more vigilant about their physical health. Long-term, closely following their mental health priorities (6 percent). The report argues that these figures prove the fact that Indian consumers are therefore willing to pay more for high quality food, especially organic products, even though inflationary pressures are easing.
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