Consumers to Follow Savings Plans Despite Fall in Income

Businesses were forced to adjust how they engaged with the marketplace, their customers, their employees, their partners, and how they operated as a result of the Covid-19 pandemic's widespread and fast effects. Employers were obliged to change the way work was done and where it was done. Supply chains needed to be restructured and adapted. In light of Covid-19, there was a considerable recasting of how the firm worked, resulting in shifting customer beliefs.

 KPMG in India extended their research of multidimensional customers in the third edition of the Me, My Life, My Wallet India. They conducted a consumer survey to learn more about new-age India's consumer behaviour and choices. Over the course of two rounds, 2164 respondents from urban and semi-urban markets were surveyed. Phase one took place in February-March 2020, before the Covid-19 outbreak, while phase two took place in September 2020, at the peak of the Covid-19 flare-up in India. In addition, in January and February 2021, an online survey of 1,191 respondents was done to develop and comprehend specific hypotheseis relating to the country's younger generation age groups.

 Let us look at the results of the important themes that are highlighted based on the research.

Financial Priorities Evolving with the Saving Sentiment Gaining Clout: 85 per cent of respondents were likely to stick to their savings plan even if it caused them 10 per cent drop in income whereas 70 per cent of respondents across all age groups are concerned about their future finances as against 49 per cent globally.

Data Privacy and Personalisation Dichotomy: Brands that track digital behaviour for enhanced customisation would make 67 per cent of respondents uncomfortable, according to the survey. 47 per cent of respondents said they were willing to pay a premium for data privacy. 45 per cent of respondents said that protection of their data is the most important element that they expect from companies as against 55 per cent globally. 

Going Digital across Demographics: In comparison to 22 per cent globally, 49 per cent of respondents said they were comfortable utilising digital payment options for shopping. Mobile phone app availability and smartphone store interactivity should be incorporated as part of standard offers now, according to 78 per cent of respondents. This is especially important in comparison to pre-Covid-19 when there was a 25 per cent increase in respondents from Tier 1 cities in the silent generation (age 75 and up) who claimed that app availability was an important factor.

 Social Causes Matter to New Conscious Customers: 84 per cent of respondents said they prefer to buy from ethical brands whose activities are aligned with their core beliefs and values. In contrast to 90 per cent globally, 94 per cent of respondents said they would pay a premium for a brand if it meant following their conscious approach.

Adapting to the New Normalised Routine: 85 per cent of respondents reported that their working hours had increased, resulting in less personal or leisure time. 88 per cent of respondents said they are more likely to buy products in the health and immunity category.

Vocal for Local Gains Mindshare: 60 per cent of respondents said they were actively working to replace foreign brands with indigenous goods. 41 per cent of respondents of all ages are ready to pay for indigenous goods. In comparison to metro respondents, non-metro respondents (45 per cent) are more willing to pay a premium for indigenous goods (40 per cent).

“The consumer sentiments have been changing manifold over the past few months in the current scenario. We are hopeful that this report will introduce business leaders to such consumer behavior changes and help them traverse their decisions meaningfully,” said Harsha Razdan, Partner, Head, Consumer Markets and Internet Business, KPMG in India.

“Today consumers are considering intangible assets such as brand’s goodwill, equity, ethics and purpose more while making their purchase decision. The rewards for firms who are able to comprehend, acknowledge and act on this mind shift are substantial” said Abhijeet Ranade, Partner, Business Consulting, KPMG in India.