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Consumer demand for non-essential, speciality goods depressed

By Rajiv Raghunath - May 11, 2020

An OMG study conducted in association with YouGuv shows that consumers are postponing purchase of non-essential goods by 6 months

An Omnicom Media Group (OMG) study on ‘COVID-19: The Impact on Indian Consumer Sentiment’, conducted in association with international research and data analytics group YouGuv, with a sample size of more than 33,000 people spread across India, reveals that while there is an uptake in demand for essential consumer goods, the outlook towards speciality and consumer durables categories seems subdued, with many postposing the purchase by over 6 months. It is cited that 40% of the respondents have stockpiled essentials; 60% have reduced purchase of personal grooming products; 50% have postponed purchases in non-essential categories like automobile and consumer durables by over 6 months; 52% are spending lesser on ordering food online.

The report states that a high proportion of potential car buyers have postponed buying plans by more than 6 months, with the impact being higher in Tier 1 cities.

                             Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

A similar impact is expected for the two-wheeler industry, with 30% of in-market audiences delaying purchase by more than 6 months.

                                   Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

Home appliances are likely to see higher purchase intent in the metros in the next 6 months, as compared to the Tier 1 cities.

                                    Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

The electronics industry is relatively better poised, with close to 60% potential customers set to buy into the category in the next 6 months.

                         Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

In the case of financial investments segment, 10% of the respondents cited that they were reconsidering financial investment products.

                       Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

 

15% are reconsidering their future purchases of personal apparels, driven by Tier 1 cities and women.

        Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

 

The report states that “at an overall level, more than 80% of Indians feel that they will emerge stronger once the pandemic is over. Citizens in metros are more hopeful about the resurgence compared to Tier 1 cities, while businessmen are not eagerly enthusiastic as compared to the salaried population”.

                                      Source: OMG Report entitled COVID-19: The Impact on Indian Consumer Sentiment’

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