InterMiles report reveals change in personal spending behavior of Indians
Along with shifting consumer spending patterns, the leading loyalty and rewards programme, InterMiles, has released its maiden ‘Consumer Spending Sentiment Index Report’ showcasing payment, purchasing and personal finance trends. Responses received from more than 11,500 InterMilers across India, make this report.
Here are few highlights of the InterMiles Consumer Spending Sentiment Index:
90% Indian consumers witnessed a change in personal spending behavior since the onset of the pandemic
The pandemic has not only brought about a change in spending capacities, but also a deep-rooted impact on the economy with a shift in consumer priorities and renewed caution with regards to purchasing. Almost 90% Indian consumers, according to the survey by InterMiles, have witnessed a change in personal spending behavior since the pandemic. And only a 10% reporting no change in their spending behavior.
Close to 70% Indians have placed greater emphasis on securing the future after the uncertainty and suddenness of the global pandemic, by increasing investments and savings. Aiding in quicker fiscal recovery for the nation, investments also ensure increased cash flow in the economy.
With 3% negligible increase in the non-essential products spending, post the advent of the pandemic, spending priorities can be seen taking a turn. There has been 21% consumer increasing spends on essential products, post pandemic.
A substantial increase can be noticed in the expenditure on essential goods and services like food products and healthcare by 45% and 38% respectively. However, what remained the same is routine spending on FMCG products like household goods and personal care products.
With consumer spends decreasing on travel (68%), entertainment (52%) and apparel (45%), non-essential spending saw a steep decline.
The rise of social commerce, voice-activated shopping and contactless payments
With over 74% survey respondents stating an increase in the use of online shopping portals, the pandemic and the subsequently imposed lockdown triggered massive changes in consumer shopping behavior. As consumers looked to minimize touchpoints that could lead to viral transmission, this can be attributed to the distinct need for contactless services.
As 40% consumers state that they now use social media channels like Facebook and Instagram more frequently for shopping, the survey also threw light on the relatively new, but sure shift to social commerce. While allowing SMMEs increased visibility at low costs, this instant content to commerce behavior is anticipated to revolutionize the marketing ecosystem in the country. Through the course of the pandemic, 31% respondents said that their usage of digital voice assistants like Alexa and Google Home, for shopping, increased and this gives the glimpse of the future.
And after the pandemic, 70% consumers have changed payment preferences. Consumers have switched preferences from cash to either cards (26%) or UPI and e-wallets, which solidifies the contactless payments behaviour. With over 44% consumers stated that they’ve started using UPI services even more than cash and cards which has increased due to the penetration of smartphones and ease of usage.
About the InterMiles Consumer Spending Sentiment Index:
In order to understand the always evolving consumer payment and purchasing behaviors, the InterMiles Consumer Spending Sentiment Index was introduced. It identifies trends that matter and enrich the industry’s understanding. InterMiles Consumer Spending Sentiment Index is committed towards understanding the pulse of consumers across various travel & lifestyle categories. It has a 10mn plus member base it will also create meaningful business opportunities for its partners and not just enable InterMiles as a programme to create unique and compelling value propositions for its members from the data collected.
The member base for the InterMiles Consumer Spending Sentiment Index comprises of multi demographics as well as diverse payment, lifestyle and travel preferences.