Bangalore, 4th May 2023: Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. The May report reveals insights on consumer investment plans for the new financial year, perceptions on education infrastructure in India, and their interaction with new AI tools like ChatGPT. The survey found that a significant proportion of consumers plan to park their funds in savings accounts, while a smaller percentage plan to invest in their own businesses or in health and life insurance. The survey also shed light on the education infrastructure in India, and the willingness of parents to send their children to Government schools if infrastructure improves. Finally, the survey examined consumer interaction with new AI tools such as ChatGPT, revealing insights into perceptions of the tool’s efficiency and impact on job security and data reliability.
The May net CSI score, calculated by percentage increase minus percentage decrease in sentiment, is at +09, which has increased by 1 point compared to last month.
The sentiment analysis delves into five relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits, and entertainment & tourism trends.
The survey was carried out via Computer-Aided Telephonic Interviews with a sample size of 10,206 people across 35 states and UTs. 64% belonged to rural India, while 36% belonged to urban counterparts. In terms of regional spread, 26% belong to the Northern parts while 25% belong to the Eastern parts of India. Moreover, 29% and 19% belonged to Western and Southern parts of India respectively. 64% of the respondents were male, while 36% were female. In terms of the two majority sample groups, 32% reflect the age group 36YO to 50YO and 29% reflect the age group of 26YO to 35YO.
Commenting on the CSI report, Pradeep Gupta, Chairman & MD, of Axis My India, said “The survey reveals that for a significant population savings account is still the preferred medium to park their funds. Additionally, there is an obvious contrast in education infrastructure preferences between urban and rural areas, with overall a positive attitude towards government schools if they provide superior facilities and quality education. Finally, our report highlights the increasing importance of AI tools like ChatGPT in the workplace, with a majority of young adults viewing it as an advantage to their work. These insights provide valuable information for businesses, policymakers, and educators to better understand and meet the evolving needs of consumers.”
On topics of current national interest
- This month Axis My India’s CSI survey delved deeper to understand consumer investment plans for the new financial year. The survey revealed that a majority of 26% plan to park their funds in savings accounts while 20% plan to invest in their own business. Moreover, 16% want to invest in Health insurance / Life Insurance while 13% want to invest in real estate. 8% is looking to invest in FD & RD (Fixed Deposits and Recurring Deposits) and 7% in Gold. While the majority of the female (33%) have favored Savings Accounts, a majority of males have chosen to invest in Business.
- In an attempt to understand conscious purchase behavior, the survey found that 18% are willing to pay more than usual but less than 10% for environmentally friendly and sustainable products. While 11% are willing to pay 10-20% more only 6% can pay 20% more. This showcases a clear rise in the preference for conscious products driven by a sense of responsibility to make ethical and responsible choices. The findings also revealed that this behavior resonates the most with 18-25YO, among men and those whose family monthly income is INR 31000 & above
- Moreover, when asked about EV vehicle preferences, 11% said that they plan to buy a 2-wheeler and 6% said that they plan to buy a 4-wheeler. Among those surveyed majority of the urban dwellers (12%) display a preference for two Wheeler EVs. Various government schemes coupled with lower operating and maintenance cost has pushed consumers towards adopting Electric Vehicle in India
- The survey also threw light on the excitement around the sixteenth season of the Indian Premier League (IPL). It unveiled that 55% will watch the matches on their cable/DTH Television sets of which 61% are from urban counter cities. Moreover, 45% is expected to watch on mobile (Jio Cinema) of which 48% are from rural towns. While Mobile (Jio Cinema) is the preferred mode of watching for 18-25YO, (64%), cable/DTH Television sets are favored by 36-50YO, (66%).
- The survey also attempted to understand the effectiveness of advertisement during IPL through consumer brand recall. Upon asking which brand ads the IPL viewers noticed the most (Top of the Mind), the top brands mentioned were Dream 11, Thums Up, Tata Neu, Jio, PayTM, Amazon, LIC, Tata Tiago EV, Kamala Pasand, Kingfisher, TVS, Ceat, Rupay. However, Dream11 secured the maximum eyeballs (39%), followed by Thums Up (10%), Tata Neu (8%), and Jio (7%). Dream11, Tata Neu, and Jio were recalled the most by male viewers.
- The survey further deep-dived to understand consumers’ perception of the education infrastructure in India. Of those surveyed, 51% said that their children go to Government schools and 57% said theirs go to Private schools. 56% of rural India are going to Government schools and 57% of urban India are going to Private schools. Only 1% said their children go to International schools. Additionally, 82% of those whose children go to Private or International schools are positive about sending their children to Government schools if it assures superior facilities and quality education.
- Finally, the survey wanted to gauge consumer’s interaction with new AI tools like ChatGPT and their perception of its efficiency. Of those surveyed (NCCS AB, Graduates & above) 6% have heard about ChatGPT. Importantly, 81% of those that have heard view the AI tool as an advantage to their work while a combined 24% view it as an obstacle to job security and data reliability. A majority of those who have heard about the AI tool and view it as an advantage belong to the age group of 18-25YO.
Key findings
- Overall household spending has increased for 56% of the families, which is the same as last month. The net score, which was +49 last month has decreased to +48 this month. The states, which reflected the highest increase, are West Bengal with 70%, followed by Andhra Pradesh and Telangana with 61%. The age group 26-35 displayed the highest increase (59%).
- Spending on essentials like personal care & household items has increased for 32% of families, which reflects a dip of 1% from last month. The net score, which was at +21 last month, remains the same this month. Essential spends has increased more for families with a monthly income of INR 21-30,000 (37%). Karnataka reflects the highest essential spending with 45%.
- Spends on non-essential & discretionary products like AC, Car, and Refrigerator have increased for 5% of families; this reflects an increase of 1% from last month. The net score, which was at 0 last month, is +1 this month. Discretionary spends has increased more for families with a monthly income of INR 30,000 and above (8%). Rajasthan reflects the highest non-essential spending with 10%.
- Expenses towards health-related items such as vitamins, tests, and healthy food have surged for 31% of families. This reflects a decrease in consumption by 1% from last month. The health score which has a negative connotation i.e., the lesser the spends on health items the better the sentiments, has a net score value of -21 this month. Health-related product consumption increased more for females (32%) and among the age group of 26-35 (about 33%).
- Consumption of media (TV, Internet, Radio, etc.) has increased for 21% of families, which is an increase of 2% from last month. The overall, net score is at 2 this month. Media viewership has increased more among males (22%) and among 18-25 YO (30%) as compared to older age groups.
- Mobility has increased for 7% of the families, which is an increase of 1% from last month. The overall mobility net indicator score, which was at -1 last month, is at +1 this month. 11% of the youngsters from the age group of 18-25 have gone out more in the last month as compared to other age groups.
