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Indians ready to spend: survey
By agencies
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Friday, 24 June 2005, 19:30 IST
MUMBAI: Indians are no more acknowledged as people who ‘ save a lot and spend less’. The trend has shifted; people in India nowadays very much into spending their money on luxuries, entertainment, shopping and so on.
From dabbling in equities and mutual funds to out-of-home entertainment, buying new clothes, going out on vacations and decorating their homes, Indians are gearing up to splurge on things that were considered luxuries till recently.
And it is a positive outlook of the country's economy that is driving Indians to the shopping malls.
Indeed, Indians are preparing to go on a spending spree like never before in the country's history, even as consumers globally pull back in the light of uncertain economic conditions, according to a global survey conducted by ACNielsen, the marketing information provider.
A global online survey covered thousands of respondents across 38 markets from Europe, Asia Pacific, and North America to emerging markets.
"Socially and economically, India is developing at a galloping pace when compared to the rest of the world. With an estimated compounded economic growth rate of over eight percent, Indian and Chinese consumers have greater spending power today then they had at any time in recent history," said Sarang Panchal, Executive Director of ACNielsen South Asia.
Although still 54 percent of Indians believe in saving, the rest are indulging in shopping and entertainment.
The survey reveals that in terms of priority in spending, after basic living expenses are accounted for, Indians are intent on investing in equities/mutual fund (41 percent), indulging in out-of-home entertainment (34 percent), buying new clothes or embarking on vacations (33 percent), and decorating their homes (30 percent).
"Clearly, some industries will benefit more than others as consumers prioritize their purchases. These are the industries to watch out for, since they will command a greater proportion of the consumer wallet."
The most telling indicator that economic optimism in India is here to stay is the fact that Indian consumers are also the most optimistic in terms of their expectations for employment opportunities and the health of their personal finances. Based on the three dimensions of job prospects, personal finance and spending desires, ACNielsen has established a Global Consumer Confidence Index.
And at the top of the Index is India, with a score of 127, followed by New Zealand with 119 and Ireland with 113. At the bottom of the scale is Korea, scoring an index of 58.
The global average was 92. It certainly seems to be party time for Indians.