Urban consumers living in the moment to lift covid-19 gloom
PremiumConsumer attitude is leading to spends on categories like jewellery and alcoholic beverages
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NEW DELHI : Affluent urban consumers, who were overwhelmed by the severe second covid-19 wave in India earlier this year, are living “in the moment" leading to spends on discretionary categories such as jewellery, alcoholic beverages, and domestic holidays.
Consumers are now celebrating small milestones and are opting for more wearable, lighter jewellery, jewellery retailer Tanishq said. The mood has turned from being nostalgic a year ago to consumers wanting to live for the moment, Ajoy Chawla, chief executive officer, Titan jewellery division, had told reporters at the launch of the company’s festive campaign last month.
“When we did our consumer sentiment and our cultural intelligence study, we were very surprised to see the mood swing so dramatically. If last year was a lot of nostalgia, this year it was about ‘We don’t know about the past and we don’t know what the future will be. What we have now is the present and we want to make the most of it.’ Celebrate the nowness, that is what customers told us," Chawla said.
The pandemic has brought about a reality check and a growing sense that life is too short, said Rajeev Kale, president and country head, holidays, MICE, Visa, Thomas Cook (India) Limited. “As a result, consumers are loosening their purse strings to indulge in their love for travel and tick off their bucket-list experiences," Kale told Mint.
The second wave of covid that hit India in April and May was incredibly hard on millions of households who lost family and friends to the disease. The wave mounted pressure on India’s healthcare system, leading to oxygen shortage and a scramble for hospital beds. States also imposed a series of lockdowns that led to a decline in mobility and consumer sentiment turned negative.
As the covid wave ebbs and the country speeds up its vaccination drive, more urban, affluent households are indulging in lifting up their spirits. Consumers are elevating their experiences at home, celebrating intimate occasions, and going on premium domestic holidays, especially as there are still restrictions on international travel.
The pandemic prompted Mumbai-based Sakhi Deshpande, a 33-year-old media professional, and her husband to “re-prioritize" their household spends and savings in the last two years. The health crisis also cast uncertainty over the couple’s frequent socializing at Mumbai’s upmarket bars and restaurants. They also temporarily suspended foreign trips.
Deshpande said she’s more “strategic" about her investments and spends. Other than doubling down on her savings, she’d rather invest in timeless jewellery than on other fast fashion brands. The two have also planned more domestic escapes within Maharashtra over the last few months to break away from long working hours and intense restrictions in their state.
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Like the Deshpandes, more consumers are seeking upgraded rooms and packages as they visit local tourist spots. “More than 30% of packages purchased are for upgraded room categories and deal types, whereas the average earlier was between 10-20%," said Arun Ashok, regional head, India and the Middle East, Luxury Escapes, an Australian travel site that offers curated holiday packages for upscale hotels across the world.
Visits to Maldives accounted for more than 40% of sales for the travel company in the last few months, up from 10% the previous quarter, Ashok said. “Even compared to previous averages of about 25%, it’s a spike. That shows Indians have disposable income that they’re willing to spend," he said.
Meanwhile, longer hours spent at home has also translated to consumers spending on more expensive liquor. Deshpande said the couple purchased more premium gins over the last 18 months than earlier.
As people avoided bars, several companies reported an increase in sales of costlier alcoholic beverages for in-home consumption.
Moët Hennessy India’s super premium segment has seen a jump in growth rates in the last two years, said Ipsita Das, the company’s managing director. This is driven by premiumization, Das said.
“In covid times, the size of celebrations has reduced, but this has also given way to more high-end celebrations, giving a boost to all our brands. One such example is our single malt brand Glenmorangie, where a large segment of our consumers has graduated from the Glenmorangie Original to the Prestige range of Glenmorangie Signet and Grand Vintage," she said.
suneera.t@livemint.com
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