The LocalCircles survey revealed that 42% now want to get items of need delivered to their doorsteps so that they could follow the physical distancing protocols.

74 consumers in red zones averse to spending on non-essentials post lockdown SurveyPTI / Image for representation
Money Lockdown Saturday, May 16, 2020 - 13:00

Discretionary spending has taken a massive hit as consumers are deferring non-essential purchases due to the uncertainty caused by the spread of coronavirus. According to a survey by Local Circles, consumers in red zones were asked once the lockdown is relaxed in their areas what items would they spend on, to which 74% consumers said they are in no mood to spend on anything other than essentials post lockdown. The survey received over 24,000 votes from consumers spread across 124 red zone districts of the country.

Overall, the numbers in this survey show a big shift in the consumer mindset post COVID-19 lockdown, as 42% now want to get items of need delivered to their doorsteps so that they could follow the physical distancing protocols.

Also, post the lockdown relaxation, when it comes to services, people will spend most on air conditioners, fridge, appliance repairs, home repairs and salon/beauty services.

In cities like Delhi, Bengaluru, Pune, Hyderabad and Mumbai which have been under the lockdown for almost 50 days now, the consumer concerns are the highest where many haven't been able to get products and services they need.

Social media and community platform LocalCircles said as the lockdown is eased out in red zones post May 17, the survey and discussion feedback indicates that there will be a spike in spending on what is called as the secondary essential products and services outlined in this report. Spending on discretionary products and services that are not of primary and secondary need will continue to take a hit in the short to medium term.

Consumers in red zones say they want to buy gadgets, home supplies and office/school supplies post upcoming lockdown relaxations.

Consumers in red zones were asked once the lockdown is relaxed in their areas, what 'products' in specific will they spend on. At least 5% said they would buy gadgets like laptop, printer, tablet, mobile etc., while another 5% said they will buy office/school supplies like stationary, mobile accessories, books etc. A total of 4% said they would buy white goods & appliances like AC, cooler, refrigerator, grinder etc., 1% said automobiles (car/scooter), 6% said home furnishing & supplies while 2% said fashion & apparels. At least 3% said they will spend on other non-essential items.

As many as 74% consumers said they are in no mood to spend on anything other than essentials post lockdown.

Discretionary spending has taken a massive hit as consumers are deferring non-important purchases due to the uncertainty caused by the spread of coronavirus.

If consumer choices are bifurcated based on only the ones who said they will spend on non-essentials post lockdown relaxations, LocalCircles said it can be adjudged that 19% would buy gadgets like laptop, printer, tablet, mobile etc., while another 19% will buy office/school supplies like stationary, mobile accessories, books etc. 15% would buy white goods & appliances like AC, cooler, refrigerator, grinder etc., 4% automobiles (car/scooter), 23% home furnishing & supplies while 8% will spend on fashion & apparels. 12% consumers will spend on other non-essential items.

Consumers in red zones were asked if they are looking at spending post lockdown relaxations in any of the non-essential categories, namely gadgets, office/school supplies, white goods, automobile, home furnishings, fashion etc., how will they purchase them. In response, 33% said they will order via ecommerce while 41% said they will visit a retail store. 9% said they will get it delivered from a retail store while 17% were unsure about it.

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