The recession is affecting different sections of the society in different ways.
A joint study conducted recently by Starcom Mediavest Group (one of the world’s leading media agencies) and The Key (a qualitative research company) throws up some interesting insights into consumer spending habits.
The research, conducted across Delhi, Mumbai and Bangalore between December and January, shows that when it comes to tackling recession, the well-off strata of the society is reacting in a diametrically opposite manner as against the middle or the lower-middle class. SEC A (socio-economic class) is more affected than SEC B, and the latter treats the slowdown as mehengai ka zamaana (read inflation).
What’s more, the spending categories that affect the SEC A do not touch the SEC B at all. Upper income households have visibly cut expenses on holidaying and entertainment, whereas the lower income households are just not willing to make any adjustments there. However, both sections have made major cutbacks on local travel commutes and jewellery.
The report, co-authored by Shalini Rawla, from The Key and Starcom Mediavest Group, says, “Startling discoveries feature categories that actually respond in a recession to price-offs such as luxury and some categories that don’t respond such as automotives.”
The report said, “Down trading of brands will definitely happen in fashion and apparel. However, a category like consumer electronics will stave it off with elan and yet not suffer.” Also, the spending patterns of consumer in household and personal care announce the return of the small store format. Women, or rather housewives, are more optimistic about the recession ending earlier than men.
Overall, it is clear that people are spending more time at home and housewives are actively rearranging savings and expenditure.
Businessmen and students are postponing purchase of automotive vehicles for as long as they can. Which means upscale customers are also seeking bargain and people are shopping to fulfil needs, not wants.
