Consumers have been forced to change their spending pattern with the onset of the lockdown
A survey on Indian consumer sentiments conducted amid the lockdown by management consulting firm McKinsey showed that 54% people have seen a loss in income and 67% have cut back on their spending.
Grocery, household supplies, and at-home entertainment areas are the areas where consumers indicated they are going to continue spending. Consumers are cutting back their spending on non-essentials like apparel, accessories, footwear, alcohol, snacks, food-takeout & delivery, consumer electronics, personal care services, vehicle-purchase, and out-of-home entertainment.
In the survey, conducted between April 10 and 13, 57% respondents said they had witnessed a loss in household savings in the past two weeks and 55% felt they will continue to lose out for the next two weeks. But 58% feel the economy will bounce back stronger than before in 2-3 months compared to about 52% in a March-end survey.
The coronavirus outbreak will cause further change in the channels of shopping. Purchase of household supplies, grocery, personal-care products, entertainmentand media will expand online.
Only local kirana shops matched this rise in spend due to proximity to consumers amid the lockdown.