There has been a drastic change in the buying behaviour of consumers since the second wave of the COVID -19 pandemic hit India. People are trimming down their expenses on luxuries and are buying only essentials instead. Consumer good brands are seeing a slump in discretionary expenses like clothes, large appliances, and beauty products. As per Metro Cash and Carry, Amul, Marico Ltd and Usha International, consumers are sticking to buying only important items this quarter as they have to spend on more healthcare.
Sales are being affected due to the stringent lockdowns in most states, where stores are opening up to sell essential items and that too only for a restricted amount of time. Manufacturers of air coolers, kitchen appliances, and fans expect sales to be 50% of what they were in 2019. In fact, large consumer electronics companies have reduced production since April when many states announced partial restrictions.
The gloom and despair are more apparent in the second wave as larger number of people are getting affected and are spending a lot more on medicines, hospitalization and saving some for any kind of emergency.