The News International Team
A strong government, easing inflation and growth recovery has revived consumer optimism in India, says a Credit Suisse report.
India tops the Credit Suisse Emerging Consumer Scorecard 2015, being the only country to score in the top three for medium-term expectations of personal finances, expectations of inflation, and household income trends alongside their immediate spending intentions.
A total of nine countries were surveyed for this report: Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa and Turkey.
“More people believe this is a good time for making big ticket purchases as average household income increased by around 10 percent in 2014 after being relatively steady the two previous years. Fewer people are expecting inflation to increase – a sign that high entrenched inflation expectations have finally started moderating,” says the report.
The report highlights a few key themes:
(Excerpts from the Credit Suisse report)
1. E-commerce and the emerging consumer
The survey has indicated that e-commerce across the nine countries could become bigger as a share of total retail sales than in developed economies.
2. Travel & leisure and the emerging consumer
The desire to increase future spending on holidays and travel has been a consistent theme of all previous surveys, and this continues into 2015. The propensity to travel has risen again in this survey with consumers holidaying rising from 45 percent to 65 percent during the life of our surveys with multiple holidays now a feature.
3. Autos and the emerging consumer
Mobility is another key trend for economies where GDP per capita is rising. India and Indonesia have the lowest household car ownership rates, at 19 percent and 7 percent respectively, and in that respect are a source of great potential.
4. Healthcare and the emerging consumer
Trust in local brands, safety concerns abating- The survey suggests an increase in overall trust for local brands. The correlation between a lack of confidence in local brands and a willingness to pay for international brands continues to be a key feature.
5. Brands and the emerging consumer
The relevance of technology and e-commerce is a new feature to this debate and highlights the significance of domestic rather than global e-commerce brands and platforms and the challenges it poses to the global software companies and networks.