Date:14/02/2003 URL: http://www.thehindu.com/2003/02/14/stories/2003021402281600.htm

Business

Consumer spending looks up

By Our Special Correspondent

NEW DELHI FEB. 13. Consumer spending during 2002 has risen by 9.6 per cent compared to the previous year that showed a decline in spending, according to the Consumer Outlook study conducted by KSA Technopak.

The survey shows that the growth this year indicates a rise in market opportunity for retailers estimated to be in the region of Rs. 15,000 crores among the A and B categories in urban India alone. Consumer Outlook is a strategic annual tracking study on consumer shopping and spending behaviour across various categories conducted by KSA Technopak, a joint venture consultancy with Kurt Salmon and Associates (KSA) in this country.

According to KSA Technopak, the five main key drivers for today's consumers are enjoyable shopping experience, product quality fashion attributes and saving time. Consumers showed preference for shops offering special schemes for sale and were keen on products that are considered trendy. A large number of consumers said shopping was a need driven exercise which they preferred to do at outlets where they could save time. The study says that after a sluggish growth in 2001-02 when difficult market conditions forced people to tighten their belts, almost all the categories in the Indian retail sector have bounced back.

Simultaneously, the study finds that savings and investments have also risen by a substantial percentage. Brown goods and personal care items purchased for self showed a decline in growth. However, various categories such as groceries and eating out seemed to be high spend areas and this trend has been consistent over the last five years that KSA Technopak has undertaken the study.

The survey found that this year 41 per cent of consumers have declared they will spend more in 2003 than the last while 48 per cent expect to spend at least as much as in 2002. According to KSA Technopak officials, 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.

The Consumer Outlook 2003 study was conducted by random sampling of 10,000 people in the 15-58 age group in 28 cities across the country.