Indian consumers cut discretionary spending: Credit Suisse

Indians are cutting down on discretionary purchases like apparel, electronics and automobiles as consumer optimism in the country is on a decline, according to an emerging markets consumer survey report by Credit Suisse.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com

Home » News » Economy

Jan 31, 2013, 12.59 PM | Source: Reuters

Indian consumers cut discretionary spending: Credit Suisse

Indians are cutting down on discretionary purchases like apparel, electronics and automobiles as consumer optimism in the country is on a decline, according to an emerging markets consumer survey report by Credit Suisse.

Like this story, share it with millions of investors on M3

Indian consumers cut discretionary spending: Credit Suisse

Indians are cutting down on discretionary purchases like apparel, electronics and automobiles as consumer optimism in the country is on a decline, according to an emerging markets consumer survey report by Credit Suisse.

Post Your Comments

Share Cancel

Indian  consumers cut discretionary spending: Credit Suisse
Indians are cutting down on discretionary purchases like apparel, electronics and automobiles as consumer optimism in the country is on a decline, according to an emerging markets consumer survey report by Credit Suisse.

High inflation and slower growth continues to worry Indian consumers with more people expecting lower salary increases, said the survey, which interviewed 2,602 respondents across 10 cities and rural areas in India.

This is in sharp contrast with other fast-growing economies like Indonesia, where the increase in minimum wages is likely to keep consumer sentiment robust, and in China, where sentiment remains strong on the back of purchases by consumers from lower income groups, the report released on Wednesday said.

"There are signs of down trading in discretionary items in India. Fewer people are buying smartphones and more now want to buy an entry-level car," said Arnab Mitra, research analyst with Credit Suisse.

"More and more consumers are postponing big-ticket purchases.. This situation will take more than a couple of quarters to improve," he said.

Last week, investors knocked down shares of India's largest consumer company Hindustan Unilever by 5 percent after the it reported weak volume growth as consumers cut purchases of products such as packaged foods and personal care items.

The report, however, said the long-term growth potential in India remained intact due to low product penetration in most categories.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Indian consumers cut discretionary spending: Credit Suisse

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login