A survey by McKinsey has revealed that Indian consumer optimism has improved and returned to April levels as they seem to cheer festivities or hope for an early Covid 19 vaccine. This straight away also points to increased expenditure across all categories by Indian consumers in the days to come.
"Net spending intent has improved across categories since March. The vast majority of Indian consumers have tried new shopping behaviors and digital .. habits during the crisis and report a high intent to continue. Though most Indians are still waiting for indicators beyond the lifting of restrictions to return to normal out-of-home activities, more are engaging in them," said the survey.
Further as per the survey in the wake of the pandemic, consumer behavior has changed on several parameters. And while most are trading down or refraining from buying expensive goods, brand loyalty has also taken a hit now. Say for instance a consumer who previously bought expensive coffee brand will continue to have coffee but of a relatively cheaper rate.
Now as per the survey the intent to spend money post the pandemic has increased by 30%. Besides, the survey said that 58% of Indians were having optimistic outlook on Indian economy and expects it to recover in next 2-3 months. Remaining 32% were unsure about the economy and expects it to rebound in some 6-12 months. And the balance 10% Indians surveyed had a very pessimistic view and see the pandemic to have a long lasting impact on the economy.