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Home Blogs Health News Savings, health, essentials to see increase spend on corona impact: BCG

Savings, health, essentials to see increase spend on corona impact: BCG

By NS Desk| Health News| posted on :   12-Apr-2020

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New Delhi, April 12 (IANS) Travel, outdoor leisure activities and discretionary spending are likely to be the hardest hit by a planned reduction in spending in the next six months, as per a survey by Boston Consulting Group (BCG) on Covid 19 trends in spending.

The Covid 19 consumer sentiment research by BCG finds that assesses the overall shift in spending across a large set of categories.

The survey finds that despite the late onset, consumers are extremely concerned about Covid 19. The defensive categories will do well with savings, health and wellness, at-home entertainment and essential categories most likely to witness a spurt over the next six months.

Significant cutbacks are expected in travel, out of home entertainment, discretionary items fashion and luxury goods, durables and appliances and automobiles.

There will be some dual behaviour categories where people are looking to increase as well as reduce spends in categories such as alcohol and food delivery.

For the increase in spends, the factors will be inflationary expectations, stocking up, lifestyle changes will be the key drivers. For the reduction in spends, the key drivers will be social distancing and "savings first" mindset.

The lower SEC profile and youth are showing a high propensity to cut back on spends while there is no significant difference across metros and non-metros.

The BCG survey also shows that there will be a clear shift to online spending across categories.

The survey found that it has had a significant impact on consumers daily life as 87 per cent respondents said they are trying to avoid public places, 87 per cent are trying to keep a distance in crowds, 85 per cent said they had changed their lifestyle, 84 per cent are working from home, 76 per cent are not going out of the house except for work and 68 per cent are avoiding going to hospitals.

--IANS

san/vd

NS Desk

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