KPMG Survey 85 percent of people are likely to stick to their savings plan,
despite a 10 percent drop in their income, indicating the sentiment savings.
The unpredictability, scale, and severity of the global pandemic
have led to increased concerns about personal finances across all demographics. Especially for young people entering the job market, the
lack of prior work experience (and therefore savings) and the uncompromising economic outlook make the situation particularly dangerous.
In light of this, KPMG India conducted a Consumer Survey– Me, My Life, My Wallet Report 3.0 to understand the emerging consumer behavior and choices in New age India. This includes 2164 people in the urban and semi-urban markets in two phases.
Key findings of the survey are:
85 percent of people are likely to stick to their savings plan, despite a 10 percent drop in their income, indicating the ‘saving sentiment.’
About 70% of people of all ages are worried about their future finances. Globally, 51 percent to 30 percent focus on current finances. This also indicates that savings are now an important factor that Indians consider the pandemic post.
It is noteworthy that similar protection sentiments and cost practices were observed throughout Tier-1 and Tier-2 cities. 74 percent of Tier- 1 city responders and 63 percent of Tier- 2 respondents gave more priority to future finance than current finance, indicating profits in all urban segments. If incomes fall by 10 percent, Tier- 1 and Tier- 2 respondents show similar trends when it comes to cutting costs for electronics, savings or investment, personal health, home appliances, clothing, and items such as food.
78 percent of Generation X (age 37 to 53) and 70 percent of
millennials (ages 17-36) are more focused on their future economics, indicating a savings culture that affects all demographics.
The sharing economy is growing by choosing new share/rental models in clothing, mobiles, electronics, cars as a way to reduce leading costs
and save more. Millennials (ages 17-36) and Generation Z (ages 7-16) make up 70 percent of respondents who are comfortable sharing and renting clothes and mobiles. Similarly, Millennials (ages 17-36) and Generation Z (ages 7-16) make up 60 percent of respondents who are comfortable sharing and renting cars.