Consumers cutting back is global
What's true to consumers in India is true to ones in the US. too. Or shall we say the rest of the world? Back in June, a study by Anita and me had found that Indian consumers had cut back on their purchase quantums, ie., 'if they ate out once a week, now its once in two weeks. If they travelled for leisure every six months, now they do so only once a year. The most interesting finding that should bring cheer to the likes of P&G and Home Depot or any other brand out there is that, consumers still haven't switched to a 'cheaper' brand to save money. That is, if one were used to wearing Levi Strauss denims, one still buys the brand, albeit in lesser quantities.'
Consumers in the US. too seem to doing exactly the same as their counterparts in India. Cut back on purchases. A recent Harris Poll found that 'two-thirds of Americans are likely to decrease spending on eating out and entertainment in the next six months'. Note, this is what what they did six months ago. Which means the trend of 'cutting back' is continuing.
Note the results of the survey;
- Only 4% of respondents said they were likely to buy a boat or recreational vehicle such as a motor home or boat in the coming half-year, with 91% of respondents saying that it was "not at all likely" that they'd make such purchases.
- Bad news for the car industry: Only one in 10 (10%) respondents said it was "very likely" or "somewhat likely" that they'd buy a new car, truck, or van in the next six months. More than three-quarters (76%) said making an automotive purchase was "not at all likely."
- A mere 2% said it was "very likely" that they'd start a new business in the coming six months.
- Exactly half of the respondents said they will be saving or investing more money in the next six months, slightly down from 53% who said so in May of this year.