Revenge shopping and revenge travelling trends are simmering down in India

• As per consumer data intelligence company Axis My India, the overall spending of Indian consumers has dipped by two percentage points in June and it is expected to further fall in July.
• The survey also discovered that more than 10% of consumers have started going to movie theatres to watch new films but 90% of them are still apprehensive.
• Overall, Indians still seem to be wary about stepping as increased travel sentiment was reflected only among 7% of families.

After two years of spending indoors, the last few months have seen a much-expected trend – revenge spending and extensive travelling. From February this year, every month, the number of people travelling, going to malls and restaurants added to the list.

But in June, the four-month streak broke as the consumer sentiment index dropped by two percentage points, according to the Axis My India Consumer Sentiment Index. In July, the sentiment is expected to drop two more percentage points.

“86% said that they are going out the same for short vacations, malls and restaurants, a dip by 1% from last month. Increased travel is reflected only among 7% of families, same as last month,” the Axis report said.

The growth in mobility had been picking up since the festive season of 2021. It had however gone down in January-February because of the Omicron scare and then again in March-April.

“There is a certain section of consumers who are shopping more, traveling more and a certain section, which are in majority, are holding onto their spends as they are unsure about the future,” said Girish Upadhyay, chief marketing officer, Axis My India.

The other three indicators of consumer spending — spending on essentials like personal care and household items; spending on non-essential and discretionary products like AC, car, and refrigerator — have more or less remained the same.

“The rise in inflation has impacted spending across essential, discretionary products. The high prices have taken away some purchasing power of the consumers wherein they are forced to restrict their expenses,” said Upadhyay.

Consumption of health-related items more or less remains the same for 51% of the families. As health spends reduce, consumer sentiment improves.

Upadhyay is optimistic that India’s consumer sentiment will recover in the coming months as the festive season approaches.

“With the festive season fast approaching and the government taking some proactive steps, sentiments should improve in the coming months,” said Upadhyay.