According to Consumer Outlook 2002, presented at the KSA Technopak Retail Summit, the consumer spending is rising. ‘Consumer Outlook’ is the annual consumer tracking study conducted by KSA in India, the US, Europe and Japan.
The study shows a 33 per cent increase in the number of new consumers entering a category in year 2001 against 2000. However, there has been a decline in the spending values of about 10-13 per cent on an average across certain discretionary categories.
While the spending outlook for 2002 continues to look positive, the study explains that marketers need to consider the positive sentiment with caution. The study also projects that the savings trend, which had been showing a downward trend, is likely to go up. The positive impact on spending is likely to be felt in 2003.
The study findings also show an apparent growth, which was lower than last year. The larger net of consumers pulled down the annual growth in spending by about two per cent in 2001, against seven per cent in 2000 for discretionary categories.
According to the study, most consumers felt that they had continued to earn broadly the same in 2001 as in 2000. However, a small percentage indicated lower earnings.
Irrespective of the earnings movement, consumers were of the opinion that they had spent and shopped at the same level or more in 2001, indicating that spends on non-discretionary categories went up at the higher rate than on discretionary categories.
The study also indicates that consumer niches are beginning to drive the market and are becoming more important.
The study is a consumer-behaviour based tool used for devising consumer-centric strategies, and is based on research across categories such as apparel, accessories, consumer durables, home textiles and the retail sectors.
Source: Business Line