Over a third of India’s urban shoppers surveyed by EY said the covid-19 pandemic has turned them pessimistic about the future, a mood that will translate into muted consumer spending across several categories in the near term. EY’s Future Consumer Index, surveyed 1,046 urban Indian consumers, covering their current behaviors, sentiment and intent to spend. ‘60 per cent of Indian consumers believe the way they shop would change as a result of COVID-19. In the early stages of the pandemic, consumers were worried about the health of their families and meeting their basic needs,’ EY said. Nearly 35 per cent of the respondents fall in what EY classifies as the ‘cut deep’ category, a group that includes consumers who are pessimistic about the future and are currently spending less across categories. However, over 40 per cent of these consumers said they are spending more on groceries, EY said in its findings on Wednesday. Then there are those in the ‘hibernate and spend’ group 38 per cent who remain concerned about the outcome of the pandemic but are also well-placed to deal with it.

Nearly 25 per cent of respondents said they are ‘worried about their families, were less optimistic about the future and have been stockpiling essentials, thus, 55 per cent of them are spending more on household and hygiene products.’ EY classified them in the ‘save and stockpile’ category.

Of those surveyed, a very small proportion, 2 per cent remain insulated from the financial constraints of the pandemic and are expected to revive their old-spending habits as and when things go back to normal. These EY classified as the ‘calm and carry on’ group.

EY gauged the ‘current’ state of consumers’ mind and also highlighted the ‘next’ phase that would determine how companies respond to quickly evolving shopping behavior.

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