Global Issues Barometer, a study by London-based data analytics company Kantar Group with approximately 30,000 employees in 100 countries working in various research disciplines, including consumer behaviour and public opinion has pointed out that 76% of urban consumers are feeling the pinch due to the increasing cost of living.
The study reveals that due to the rising retail inflation, Indian households’ budgets have been impacted and there is a direct effect on their major plans for life. The study reveals that Indians are careful about savings and are compelled to work long hours to meet increased living expenses.
As the increase in fuel prices, food costs and household charges is higher in India compared to the world, Indians save lesser amounts and even put big plans like insurance, children’s education and retirement in the back seat.
Indicating that people are struggling to meet their living expenses, the report says that retail inflation has robbed away the purchasing power of the consumers forcing urban consumers are working harder and longer. As the Indian consumers are facing economic stress, “prioritising” the expenses is expected to take toll of costlier items such as such as cars, durables, and mobile phones, the study says.
As many as 35% of consumers felt that their financial situation is worsening and 46% of them believed that the general economic outlook of the country is negative.
However, the Kantar study revealed two interesting observations with regards to the comparison between Indian Consumers and their global counterparts. First, the Indian consumers, despite having to trim their expenses, are optimistic about the future of the country and second, while global consumers believe that governments must tackle the financial crisis, Indians feel it to be a combined responsibility between government, general public and businesses.
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