Indians want to learn more about financial investments to manage the cost of living

March 28, 2023

The value of savings to navigate uncertain times is pushing Indian consumers to take charge of their finances. According to Mintel research, half of Indians (51%) agree that the COVID-19 pandemic has taught them the importance of saving, while 24% say that it is necessary to learn about financial investments (eg fixed deposit, mutual funds) to make the most of their income. 

Furthermore, Mintel research shows that 44% of Indian consumers have used savings in the last three months through December 2022. In addition to saving, planning for medical emergencies is also more pronounced for parents (26%), particularly among nearly one-third (30%) of fathers with children in the household.

Saptarshi Banerjee, Senior Lifestyle Analyst, India, at Mintel said:

“Pursuing financial wellness has become increasingly crucial for consumers to gain control in a volatile economic environment. Thus, Indian consumers now emphasise securing their future by increasing investments and savings post-pandemic. This is even playing out on social media with the rise of financial influencers discussing various investment strategies and the need for better long-term planning.

“Consumers’ desire to prevent ‘the worst’ from happening used to be focused on large-scale upheavals like natural disasters or geopolitical conflicts, but this behaviour is trickling down to all aspects of everyday life as explored in Mintel Trend Prepare for the Worst. Consumers are looking for brands that reassure them, help them get prepared and feel protected.”

Pleasure gains momentum among some consumers

Mintel research shows that Indians spend a larger share of their wallet monthly on groceries (46%), household products (15%) and clothing and accessories (8%), whereas health and wellness and beauty and personal care products are trailing at 7% and 6%, respectively.

“The desire to focus spending on health and wellness, brought on by the COVID-19 pandemic, persists for consumers. Thus, a value-based approach is becoming more important as they look for ways to reduce costs. For instance, with almost half of Indians’ monthly budget allotted to groceries, it is no surprise that 60% also want flexible grocery payment plans, while 53% want coupons or discounts on healthy food products. Offering these extra benefits can help brands redefine the meaning of value,” Banerjee added.

Pleasure gains momentum among some consumers

Some Indians are drawn to the pursuit of pleasure and indulgences, with 38% saying that it is important to make the most of the present instead of worrying about the future. This is significantly higher among those residing in the East region (53%). Meanwhile, about one-fourth (21%) of consumers say it is important to pamper oneself with indulgences (eg vacation trips).

“Our research shows that consumers are seeking a break from their monotonous routines and stressful surroundings, craving an opportunity for indulgence. However, 67% are also concerned about rising prices. Providing affordable indulgence in the form of little treats and experiences would resonate with such consumers, while incorporating new technology, such as using the metaverse for immersive experiences or automated services, can be strategies to add value. Personalisation in products can also increase their sense of indulgence and brand loyalty,” Banerjee concluded. 

Additional research on Indian consumer attitudes towards spending and interviews with the analyst are available upon request from the Mintel Press Office. For those interested in purchasing the full report, please visit the Mintel Store.

Saptarshi Banerjee
Saptarshi Banerjee

As a Senior Lifestyle Analyst, Saptarshi provides trends and observations to help local and global clients better understand Indian consumers’ psyche. Prior to joining Mintel, Saptarshi worked with various market research agencies across the FMCG, Healthcare, Media and Technology space.

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