Mumbai: Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. The month of February encapsulates that while almost 46% views ads on the internet, only a little more than half of it shops online with the most preferred apps being Flipkart, Amazon and Meesho. In addition, while this month’s media consumption has increased for 22% of the families, a second majority of 29% reveal that online TV streaming services have changed the way one watches television.
The March net CSI score, calculated by percentage increase minus percentage decrease in sentiment, was up to +9, from +7 last month and reflecting an increase in the net score post the February drop because of the Omicron scare.
The sentiment analysis delves into 5 relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits & mobility trends.
This month, Axis My India’s Sentiment Index dived deeper to comprehend consumer’s behavior with regards to online streaming, advertisement and shopping. The survey further revealed most preferred app by consumers for online shopping. Finally it also gauged consumer views on the impact of upcoming five state elections, start-up ecosystem and RBI proposed digital currency on the nation.
The surveys were carried out via Computer-Aided Telephonic Interviews with a sample size of 10,151 people of which 70% belonged from Rural India while 30% belonged from urban counterparts. In addition, 63% of the respondents were male while 37% of the respondents were female.
Commenting on the CSI report, Pradeep Gupta, CMD, Axis My India, said, “With greater relaxation from the government in terms of mobility and increased encouragement from corporates to return to the physical setting, we can witness the country’s effort to go back to the ‘old normal’. Consumers are spending where necessary and exercising ‘very mild’ caution on discretionary expenditures or mobility habits. Attracting consumers’ interest is also the five state elections, as they are expected to have an overall impact on the country’s economy. In addition, a positive outlook towards RBI’s proposed digital currency also reflects the nation’s wider acceptance of this change. PM Narendra Modi being voted as the leader best suited to guide India’s internal & external security in the wake of the current Russia-Ukraine crisis is not a surprise. Finally, increased online ad consumption & online purchase behavior reflect the gradual dominance of digital in a consumer’s life and the need for marketers to develop an omnichannel marketing strategy.”
- Consumption of media has increased for 22% of the families reflecting a decrease of 2% from the last month. Consumption remains the same for a majority of 57% of families same as last month. The overall, net score of this month is at +1 as compared to +2 for the previous month
- Overall household spending has increased for 54% of families which reflects a 1% increase from the last month. The net score which was at +39 last month has increased by +5 to +44 this month
- Spends on essentials like personal care & household items has increased for 43% of the families which has maintained compared to last month. Spends however remain the same for 38% of the families. The net score which was +20 last month has increased to +24.
- Spends on non-essential & discretionary products like AC, Car, Refrigerator has increased for 8% of families. Expenditure nevertheless remains the same for 87% of the families. The net score is at +3 remaining the same as last month.
- Consumption of health-related items more or less remains the same for 49% of the families, while a surge is witnessed among 35%. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -19 as compared to -20 last month. This signifies persisted apprehension for the overall health and well-being of the consumers.
- 90% families said that they are going out the same for short vacations, mall, and restaurant. Increased travel is reflected only among 5% of families while 5% reported reduced mobility. The overall mobility score which was at -3 last month has remained the same.
On topics of current national interest:
- Axis My India further evaluated consumer’s views on the impact of streaming services on television viewing. A majority of 57% said that online streaming services have not impacted their television viewing habits, signifying that TV is still the dominant medium in India. 29% however is of the view that online TV streaming services have changed the way one watches television, this insight unravels a surging need for video-on-demand services that provide flexibility in content viewing
- To gauge advertisement attention in the mind space of consumers, the survey discovered that a huge 46% notice ads on the internet. This behaviour is higher in the younger age groups as expected.
- Assessing consumer’s views on online shopping preferences, Axis My India’s survey found out that only 29% indulge in online shopping. In addition, a majority of 46% prefer to shop via Flipkart, while 33% prefer to shop from Amazon. Meesho, Myntra, Snapdeal, Ajio and Paytm Mall are other preferred choices.
- The CSI – Survey furthermore captured consumer’s views on the upcoming five state elections of Uttar Pradesh, Punjab, Uttarakhand, Manipur, and Goa. A huge majority of 50% strongly believe that the results of these 5 state elections will have a considerable impact on the 2024 National Elections. These are the views of people residing across the nation & not just the election states.
- In an attempt to understand consumers’ views on a series of Budget announcements, Axis My India discovered that 68% believe that RBI’s proposed Digital currency/Digital Rupee will encourage a safer and secure mode of online transaction/ transfer of funds. This positive outlook could mean a wider acceptance of the proposed digital currency upon its introduction. A minority of 13% and 6% believe that the digital rupee will ensure reduced dependency on cash/physical notes; stimulate increased global as well as rural transactions respectively.
- Exploring consumer’s views on the start-up ecosystem, the survey discovered that 85% believes that start-ups are going to be the backbone of ‘New India’.
- Finally, 41% of respondents believe that PM Narendra Modi is best suited to handle India’s internal & external security, a factor which gains prominence considering the current Russia-Ukraine crisis.
INDIA CONSUMER SENTIMENT SCORE
* Health score has a negative connotation i.e., the lesser the spends on health items the better the sentiments.
* The Overall Consumer Sentiment Score is an average of the mentioned sub-indices.