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Consumer spending in India up 9.6 percent in 2002: study
Wednesday, 12 February 2003, 20:30 IST
NEW DELHI: After sluggish growth in 2001 when difficult economic conditions forced people to tighten their belts, almost all categories in the Indian retail sector managed to bounce back last year, says a survey Tuesday.
Consumer spending in 2002 posted an impressive growth of 9.6 percent compared to the previous year that showed a decline, said the consumer outlook study conducted by KSA-Technopak, a leading management consulting firm.
"The growth last year implies a phenomenal rise in market opportunity for retailers, estimated to be in the region of 
150 billion in urban India alone," said the report released here Tuesday.
The retail sectors that saw sharply higher buying include footwear, apparels, apparel accessories, home textiles, entertainment, and books and music. According to the study, personal care item purchases showed a decline in growth.
Food reigned over other categories in a share of the consumer's wallet.
"Consumers spent more on groceries and eating out than on other categories and this trend has been consistent over the last five years," the study said.
"This is not to say that consumers are spending more than they are saving, for the study reveals that savings and investments have also gone up by a substantial percentage."
The study revealed that the main drivers for today's consumers were enjoyable shopping experience, value for money, product quality and fashion attributes.
Consumers also showed preference for shops offering special schemes or sales and were keen on products that are trendy and in with the times. A large number of consumers said they preferred to shop at outlets where they could save time.
"Clearly, retail outlets that would succeed are those that in addition to offering quality products also build enjoyment into every part of the consumer's shopping experience," said Harminder Sahni, associate director of KSA-Technopak.
"This includes creation of an ambience by effective use of merchandise display techniques, quick and efficient service, rewarding the customer for loyalty and using a combination of promotional schemes and offers to attract the customer."
On the outlook for the current year, Sahni said: "This year 41 percent of consumers have declared they will spend more than the last year, while 48 percent expect they will spend at least as much as in 2002.
"This spells good news not just for retailers, manufacturers and suppliers but also for consumers who continue to benefit from the many choices on offer and the increased competition for a share in his spending rupee."
Source: IANS
150 billion in urban India alone," said the report released here Tuesday.
The retail sectors that saw sharply higher buying include footwear, apparels, apparel accessories, home textiles, entertainment, and books and music. According to the study, personal care item purchases showed a decline in growth.
Food reigned over other categories in a share of the consumer's wallet.
"Consumers spent more on groceries and eating out than on other categories and this trend has been consistent over the last five years," the study said.
"This is not to say that consumers are spending more than they are saving, for the study reveals that savings and investments have also gone up by a substantial percentage."
The study revealed that the main drivers for today's consumers were enjoyable shopping experience, value for money, product quality and fashion attributes.
Consumers also showed preference for shops offering special schemes or sales and were keen on products that are trendy and in with the times. A large number of consumers said they preferred to shop at outlets where they could save time.
"Clearly, retail outlets that would succeed are those that in addition to offering quality products also build enjoyment into every part of the consumer's shopping experience," said Harminder Sahni, associate director of KSA-Technopak.
"This includes creation of an ambience by effective use of merchandise display techniques, quick and efficient service, rewarding the customer for loyalty and using a combination of promotional schemes and offers to attract the customer."
On the outlook for the current year, Sahni said: "This year 41 percent of consumers have declared they will spend more than the last year, while 48 percent expect they will spend at least as much as in 2002.
"This spells good news not just for retailers, manufacturers and suppliers but also for consumers who continue to benefit from the many choices on offer and the increased competition for a share in his spending rupee."
Source: IANS