Inflation may dampen festive season

More than third (78%) Indians claimed that their planned expenditure during this festival season is less than Rs. 10,000, according to the ‘Mood of the Nation Survey’ conducted by global research firm Ipsos.

Among the respondents (43%) who said that there spend during this Diwali is less than Rs. 5000 are mostly from middle and lower middle income families.

“High inflation and an uncertain economic environment are some of the main reasons for buyers cutting down on spending,” said Biswarup Banerjee, Head of Marketing Communication, Ipsos in India.

Less than 2 in 10 (16%) Indian citizen said that their shopping budget during this Diwali is between Rs. 20,000 to Rs. 50,000. In this group, rich and higher middle class income families were significantly higher than middle and lower middle income families.

Only 5 percent of rich Indians claimed that their planned expenditure during this Diwali is more than Rs. 50,000.

In Delhi, 23% people claimed that their Diwali shopping budget is more than Rs. 50,000 and 28% people claimed that their shopping budget is between Rs. 20,000 to Rs. 50,000.

In Kolkata, 92% people claimed that their Durga Puja shopping budget is less than Rs. 10,000.

During this festival season sweets and food items (90%), clothes (86%), and gifts (53%) are the top three planned purchases of Indian citizen. At the 4th position feature Electronic Goods, desired to be purchased by 30% people.

A very few people also plan to buy cars (6%) and bikes (5%). These respondents mostly belong to rich and upper middle class category.

In Delhi, the top three items are sweets and food items (100%), clothes (96%), electronic goods (91%).

Only half (52%) Indians said that they were holding up their purchase decision till Diwali in anticipation of heavy discounts. In this group who is waiting till Diwali, female respondents are significantly higher than male respondents.

Remaining half of the people are not willing to wait. Male respondents are significantly higher than female respondents who are not waiting till Diwali.

Delhi (79%) and Kolkata (69%) topped the list in terms of holding the purchase decision till festival season discounts are announced.

“This festive season bargain-hunting may become the preferred choice for majority of Indians as higher discounts will be definitely an added incentive for spending on desired items,” added Banerjee.

Ipsos ‘Mood of the Nation’ survey was conducted between September 24 - 27, 2012 among 420 men and women in Delhi, Mumbai, Kolkata, Chennai, Bengaluru and Lucknow.

About Ipsos:

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world’s third largest market research company.

With offices in 84 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1.363 billion (US$1.897 billion) in 2011.

Visit www.ipsos.com to learn more about Ipsos’ offerings and capabilities.