“Indian consumers are the second most confident about their personal finances out of respondents in all the countries surveyed” – Credit Suisse survey
The Credit Suisse Research Institute published its second annual Emerging Consumer Survey - a detailed study profiling consumer sentiment within the BRIC nations (Brazil, Russia, India and China), Turkey, Saudi Arabia, Egypt and Indonesia.
Survey findings related to India include: Indian consumers are the second most confident about their personal finances out of respondents in all the countries surveyed - On a weighted basis, this confidence has strengthened over the past year, but this was driven by the highest earners. Education accounts for a high share of Indian spending, underpinning a long term bullish macro story for India. Increases in spending on smaller-ticket items are above average, but the growth of spending on technology has been more muted. 70% of Indian respondents said they had no computer at home, only 19% say they have access to the internet, which is among the lowest rates in the survey. Technology spending could benefit if we see a shift away from spending on essential items. Indian bank account penetration is the highest among the countries surveyed.
Distinguishing features of the Indian consumer include a continued appetite for extra educational expenditure and a propensity to save. There is a structural opportunity in technology spending. The Indian consumer remains the second most confident in his/her personal finances looking forward (after Brazil). On a weighted basis, this has strengthened over the year but the shift has been driven by the highest income earners.
“India’s high rate of spending on education reflects a very positive long term macro trend for the economy,” said Jatin Chawla, vice president, research, Credit Suisse. “The confidence of Indian consumers, though down compared to last year, is an encouraging sign for investors. Low current rates of spending on technology hold the promise of substantial upside for those sectors as, once income levels rise, the proportion of spending on food and housing will decline.”
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