Indian Consumers Splurge on Experiences and Upgrades While Being Cautious Financially: Report

Indian consumers are not completely cutting back on spending, given the current price hike in essentials and economic uncertainty, the Deloitte ConsumerSignals-India Chapter report has revealed. Instead, they are focusing on purchases they consider useful or meaningful.

Around 79 per cent of consumers said they were confident about managing upcoming payments, while 60 per cent said they were comfortable with their savings. However, only 43 per cent felt they could comfortably spend on things that bring them joy.

Experiences Over Excess Spending

One of the strongest trends highlighted in the report is the growing preference for experiences over impulse shopping. Leisure travel continues to attract spending, although consumers are taking fewer trips than before.

Many travellers are choosing better experiences instead of cheaper options. Consumers are showing a higher preference for full-service airlines, upgraded seats and better accommodation rather than budget travel choices.

At the same time, caution remains visible in larger financial decisions. Around 65 per cent of consumers said they were willing to make large purchases, reflecting a decline compared to earlier periods.

Inflation Continues To Influence Spending

Inflation worries continue to shape household budgets. Around 73 per cent of consumers surveyed said they expect prices to rise further in the coming month.

Concerns were especially high for fuel, restaurants and utility bills. About 79 per cent of consumers expected fuel prices to increase, while 78 per cent anticipated higher restaurant costs. Around 75 per cent expected grocery and utility expenses to rise.

As a result, many families are trying to manage costs more carefully instead of drastically reducing spending.

The report found that 31 per cent of consumers were reducing food waste at home to stretch their budgets, while 24 per cent said they were buying only essentials.

About 15 per cent were purchasing more store brands, and 13 per cent were choosing lower-cost ingredients. However, only 11 per cent reported buying less food than they actually wanted.

Big Purchases Face Caution

The report also showed a moderation in vehicle purchase intentions compared to last year due to affordability concerns and economic uncertainty.

However, interest in electric vehicles (EVs) continued to rise steadily. Around 60 per cent of respondents in India said they were willing to buy an EV in the next six months.

FAQs

1. Are Indian consumers cutting back their expenditure on food?
   No, despite the risk of financial instability, Indian consumers still have not cut back costs on food.

2. How are households saving money?
   Consumers are saving money by reducing waste, recycling more, and being cautious of their big purchases.

3. Why are consumers still spending money on travel and experiences?
   Consumers are willing to spend more on travel only when they feel that those expenses can provide comfort, convenience and experiences of a lifetime.