UserTesting (NYSE: USER), a leader in video-based human insight, conducted a survey to understand the effects of the rising inflation on Indians spending habits and personal finances. As per the survey findings, over 95 percent of Indians reported that growing inflation is directly impacting their daily and monthly expenditure.
A host of cost pressures such as rising commodity prices, global supply disruptions, and more has been translated to end consumers in the form of elevated prices for goods and services across the board. Therefore, to meet basic needs, Indians are cutting back on their everyday expenses to meet their basic needs. About 60 percent of Indian respondents indicated that they are cutting back on entertainment and leisure activities such as movies, eating out, staycations, etc. Unsurprisingly, the respondents also mentioned minimizing personal car travel and opting for public transport to reduce their expenditure on petrol.
Mounting prices of essential commodities
Indians are facing the brunt of inflation majorly on petrol prices, as mentioned by 100 percent of the respondents during the survey. With essential grocery items such as bread witnessing a sharp rise in prices, 90 percent of the respondents have reported that it is becoming a burden to keep up with the inflation storm. Adding to the trouble, some respondents mentioned not having received any salary appraisals in the past year, leading to a reduction in personal savings for many.
Gig economy takes center stage amidst rising inflation
As inflation heats up, former motivations for side hustles, such as paying off debt and saving, have been replaced by a more pressing need: making ends meet. According to the survey, 75 percent of Indian respondents revealed that they are resorting to secondary sources of income to keep up with the increased cost of living. The popular options that were mentioned included freelancing and trading among other side gigs.
Indians replace their go-to shops: from big brands to local brands
Interestingly, the survey found that on average, 65 percent of Indians are buying from generic/local brands instead of name brands so as to save money. Stating that most generic brands are now offering the same quality of a product at a cheaper price, more than half of the Indians have shifted their focus on local brands, especially for purchases such as clothes and grocery items that are now being bought from local kirana shops.