Cost of living has impacted long-term purchase plans in India: Kantar report

The study cites the issues affecting Indian consumers and their purchase intent

Jul 18, 2022 04:13:00 AM | Article | Campaign India Team Share - Share to Facebook

Kantar has rolled out data from the second edition of its ‘global issues barometer’ report through which it aims to help brands navigate the macro situations consumers are grappling with and how that affects their purchase intent.

 

The study seeks to identify concerns impacting consumers and their expectations from brands.

 

The fieldwork for this research was conducted in May 2022. The focus group consisted of 49% males and 51% females from the age group of 18 years and above. The study analysed 800 consumer behavior patterns in India, and a total of 11,000 people globally across 19 countries. 

 

According to the findings, globally, the Ukraine war is the primary concern, followed by economic inflation. The third concern cited was climate change. 

 

Highlights of the report: 

  • 84% of consumers want to buy environmentally sustainable products provided that brands work on affordability
  • Two-thirds of the population believe businesses have a responsibility to solve the climate crisis 
  • 74% of Indians believe that the increase in the cost of living has impacted their long-term plans
  • 64% of Indians are experiencing economic anxiety. Compared to the world, Indians feel the pinch of price increases on white goods more. However, two third of people in India feel secure in their jobs and expect a pay rise that will match inflation. 
  • 37% of Indians mentioned the Ukraine war as a concern 
  • 27% of Indians are concerned about Covid. However, the pandemic is no longer seen as a pressing issue

 

Soumya Mohanty, managing director, South Asia, Insights Division, Kantar, said, “The current tempest of global events is affecting long-term plans as well as short-term behaviour of Indians. Beyond making cutbacks on general expenditure, people are rationalising their future savings and working harder.” 

 

Mohanty added, “Luxury goods, entertainment and holidays look likely to be the sectors to suffer next. Almost half of the households (41%) are considering economising subscriptions to entertainment subscriptions- one industry that did well during the pandemic. Longer-term, almost three fourth of people say the current turmoil is impacting their big life plans; saving for big future life events (47%), children's education (27%) and retirement plans (24%). So, the impact of this crisis lies in the future as much as in the present and can influence not just financial but also emotional well-being. Brands must therefore recognise what matters in people’s lives and examine brand’s relevance in supporting people overcome these challenges.”

 

Deepender Rana, executive managing director, South Asia, insights division, Kantar, said, “Brands that can offer green affordable solutions are likely to be favoured and become mainstream. With inflation rocketing, in their daily lives, consumers are considering solutions that can help reduce energy and fuel expenditure. They expect brands to do the same and be more efficient, while simultaneously raising the bar on ethical production. If anything, the cost-of-living crisis has reminded people that green products/services shouldn’t come at a premium. Insights from Kantar’s global issues barometer can help brands and businesses understand how to navigate during these uncertain and fast-changing times.”