Majority of households spending during festive season, says survey

A majority of households around 60 per cent in top - 10 cities of the country are spending during the ongoing festive season, but the rising prices of petrol and diesel and the increased prices of essentials have made them more budget- or value-conscious, according to a survey released on Sunday. LocalCircles in its 'Mood of the Consumer' national survey covering over 61,000 households across top - 10 cities claims to have seen a huge improvement in consumer sentiment.

According to the survey, the percentage of households planning to spend during festive season 2021 jumped from 30 per cent in May 2021 to 60 per cent in September 2021, as COVID - 19 cases drastically reduced and economic certainty improved in these four months.

Most households from these top - 10 cities have been sharing in the past 30 days the concerns related to rising prices of fuel and essentials and their focus on budget when shopping during this festive season in various online communities on the LocalCircles platform, Sachin Taparia founder told PTI.

He said that due to this, residents of seven of the top - 10 cities rated budget as their top shopping criteria in the survey.

The LocalCircles survey covered Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, Pune, Gurugram, and Noida, and it claimed that the study received over 1.95 lakh responses from over 61,000 households located across these cities.

Budget is the top criteria for households in Bengaluru, Chennai, Gurugram, Kolkata, Pune and Ahmedabad, while for households in Hyderabad, Delhi, Mumbai and Noida 'Safety' is more important. 'Convenience' is also an important criterion for households in Noida, Mumbai, Pune and Ahmedabad, the survey said.

The survey found that at least one of two residents in the top-eight cities out of the top 10 surveyed are doing the majority of their festive shopping by ordering online or locally for home delivery.

LocalCircles said that based on the inputs received, while the majority of households in Mumbai and Kolkata are likely to visit stores and markets as their primary channel for festive shopping, in other top cities most households are likely to order the majority of what they need for home delivery.

The key standout cities were Hyderabad 75 per cent Noida 72 per cent Pune 67 per cent and Chennai 60 per cent where over 60 per cent of respondents said they prefer purchasing most of what they need to be delivered to them instead of going to stores and markets.

Kolkata 57 per cent and Mumbai 52 per cent were the two large cities where more people will visit markets, according to the survey.

Smartphones, consumer electronics, white goods and appliances, home renovation, and devices upgrade are some of the big-ticket purchases that residents in the top - 10 cities are planning to make during the festive season.

All households in Hyderabad and Noida, 83 per cent in Gurugram, 80 per cent in Chennai, 57 per cent Mumbai and 48 per cent in Bengaluru are likely to purchase products under smartphones and consumer electronics.

Seventy-five per cent of households in Ahmedabad, 58 per cent of Delhi and 42 per cent in Pune are likely to buy white goods and appliances, the survey said.

In Kolkata, 80 per cent of households buying big-ticket items are likely to buy home renovation products like furnishings and furniture.

In the food and grocery category, all households of Hyderabad, 84 per cent of Delhi, 84 per cent of Gurugram, 83 per cent of Noida, 80 per cent of Mumbai, and 70 per cent of Pune are likely to spend on dry fruits, traditional sweets, chocolates, bakery products, etc., the survey report said.

Residents in Mumbai, Hyderabad, Pune, and Noida surveyed are all likely to purchase apparel, while 42 per cent of households in Chennai and 35 per cent in Ahmedabad are likely to spend on buying cosmetics, fragrances, shoes, bags and other accessories, the survey report said.

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