Per capita consumer spending declined 13 per cent during recession-hit calendar 2001, despite the fact that frequency of shopping and penetration remained largely unaffected by the recessionary trend.
The percentage of people who spent on any category increased by 33 per cent, even as only 30 per cent of the consumers earned more.
But a larger net of consumers, countered by a lowered values, pulled down the annual growth in spending by around 2 per cent in 2001 as against 7 per cent in 2000.
The year 2002 is going to be no better. According to the KSA Consumer Outlook 2002 survey, no change is expected in the spending patterns in 2002. Increase in earnings is likely to go into savings. And even if the mood turns positive during the year, the impact will be felt only in 2003.
The consumer outlook survey is the annual consumer tracking study on consumers shopping and spending behaviour across categories conducted by KSA in India, the US, Europe and Japan.
The Indian survey was presented at the fourth three-day annual KSA Retail Summit which concluded here today.
In 2001, the number of consumers in the home appliance sector showed the highest increase, while that in the apparel showed the least.
There was a 13 per cent decline in per capita spend for each category across the board due to competitive pressures but still a marginal increase in overall spending.
