74% of consumers in red zones not inclined to spend on non-essentials post lockdown: Survey
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New Delhi: Discretionary spending has taken a massive hit as consumers are deferring non-essential purchases due to the uncertainty caused by the spread of coronavirus.

According to a survey by Local Circles, consumers in red zones were asked once the lockdown is relaxed in their areas what items would they spend on, to which 74 per cent consumers said they are in no mood to spend on anything other than essentials post lockdown. The survey received over 24,000 votes from consumers spread across 124 red zone districts of the country.

Overall, the numbers in this survey show a big shift in the consumer mindset post COVID-19 lockdown, as 42 per cent now want to get items of need delivered to their doorsteps so that they could follow the social distancing protocols.

Also, post the lockdown relaxation, when it comes to services, people will spend most on air conditioners, fridge, appliance repairs, home repairs and salon/beauty services.

In cities like Delhi, Bengaluru, Pune, Hyderabad and Mumbai which have been under the lockdown for almost 50 days now, the consumer concerns are the highest where many haven't been able to get products and services they need.

Local Circles said as the lockdown is eased out in red zones post May 17, the survey and discussion feedback indicates that there will be a spike in spending on what is called as the secondary essential products and services outlined in this report. Spending on discretionary products and services that are not of primary and secondary need will continue to take a hit in the short to medium term.

Consumers in red zones say they want to buy gadgets, home supplies and office/school supplies post upcoming lockdown relaxations. Consumers in red zones were asked once the lockdown is relaxed in their areas, what 'products' in specific will they spend on. At least 5 per cent said they would buy gadgets like laptop, printer, tablet, mobile etc., while another 5 per cent said they will buy office/school supplies like stationary, mobile accessories, books etc.

A total of 4 per cent said they would buy white goods & appliances like AC, cooler, refrigerator, grinder etc., 1 per cent said automobiles (car/scooter), 6 per cent said home furnishing & supplies while 2 per cent said fashion & apparels. At least 3 per cent said they will spend on other non-essential items.

As many as 74 per cent consumers said they are in no mood to spend on anything other than essentials post lockdown. Discretionary spending has taken a massive hit as consumers are deferring non-important purchases due to the uncertainty caused by the spread of Coronavirus.

If consumer choices are bifurcated based on only the ones who said they will spend on non-essentials post lockdown relaxations, Local Circles said it can be adjudged that 19 per cent would buy gadgets like laptop, printer, tablet, mobile etc., while another 19 per cent will buy office/school supplies like stationary, mobile accessories, books etc. 15 per cent would buy white goods & appliances like AC, cooler, refrigerator, grinder etc., 4 per cent automobiles (car/scooter), 23% home furnishing & supplies while 8 per cent will spend on fashion & apparels. 12 per cent consumers will spend on other non-essential items.

Consumers in red zones were asked if they are looking at spending post lockdown relaxations in any of the non-essential categories, namely gadgets, office/school supplies, white goods, automobile, home furnishings, fashion etc., how will they purchase them. In response, 33 per cent said they will order via ecommerce while 41 per cent said they will visit a retail store. 9 per cent said they will get it delivered from a retail store while 17 per cent were unsure about it.

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