Festive season

With the beginning of the festive season in India, consumer sentiment in the country is also improving. 42% of families will shop more or same this year as compared to 2020, as per a report by Axis My India. The report also added that the expected increase in spends is higher among private and government service employees. Moreover, overall household spending has also increased for 56% of the families in August, compared to 54% in July. The increase is higher in the north, at 61%. "As the festive season approaches, consumers are slowly stepping out - as proven by increased numbers for non-essential spending and mobility," Pradeep Gupta, CMD, Axis My India, said.

"This should have a positive effect on the hospitality industry which has been severely affected due to the pandemic. Tourism, however, continues to be a concern as 83% of the respondents are still averse to travelling.

Economic sentiment is looking buoyant with 64% of the respondents expecting the Sensex to cross 60,000 before the end of this year," Gupta added.

Consumer data intelligence company Axis My India has released its monthly analysis of consumer perception, India Consumer Sentiment Index for the month of August. The survey was conducted among 10482 people across 28 states and seven Union Territories via computer-aided telephonic interviews. 72% of the people surveyed were male and 28% were female.

As part of the other key findings, spends have increased on essentials like personal and household care by 47%. However, the consumers are still being cautious about spending on non-essential and discretionary products. Only 21% of families surveyed have mentioned an increase in non-essential spending.

The consumption of health-related items has increased or remained same for 79% of families and decreased for 21% . The health score has a net score value of -24, the report added. On the other hand, media consumption has increased for 25% families and remained same for 47%. The media consumption increase is highest in the 18-25 year age group at 32%, the study revealed.

The overall mobility score has reached -8 from -24 last month, while 93% of families are going out the same or less on short vacations or visiting mall or restaurants. Meanwhile, the net Consumer Sentiment Index (CSI) score has been recorded at +6, rising at the fastest pace over the last month, the company said in a statement.

Question:

Why is it important to understand the cultural values of a particular market so as to design the promotional activity ?