Consumers in red zones say they want to buy gadgets, home supplies and office/school supplies post upcoming lockdown relaxations

15th May 2020, New Delhi: Along with how people work, the COVID-19 pandemic is also changing the way how people buy things. Many dedicated market goers are now shifting to purchases delivered at doorstep to minimize outdoor activities & contact with other people due to the fear of contracting the virus. May it be the malfunctioning laptop or the broken mobile phone, the empty printer cartridge or the stationery for children, consumers have been restlessly waiting for the lockdown to get over to buy stuff that is important for their daily routine but has not been termed as essential by the Government.

LocalCircles conducted a survey specifically in red zone districts of India to check with the consumers what are the various products and services which are not put under the essential category, will they be buying after the lockdown and how will they be buying them. The survey received over 24,000 votes from consumers spread across 124 red zone districts of the country.

In the first question, consumers in red zones were asked once the lockdown is relaxed in their areas, what ‘products’ in specific will they spend on. 5% said they would buy gadgets like laptop, printer, tablet, mobile etc., while another 5% said they will buy office/school supplies like stationary, mobile accessories, books etc. 4% said they would buy white goods & appliances like AC, cooler, refrigerator, grinder etc., 1% said automobiles (car/scooter), 6% said home furnishing & supplies while 2% said fashion & apparels. 3% said they will spend on other non-essential items. 74% consumers said they are in no mood to spend on anything other than essentials post lockdown.

74% citizens say post lockdown relaxation they will not spend on anything other than essentials

Discretionary spending has taken a massive hit as consumers are deferring non-important purchases due to the uncertainty caused by the spread of Coronavirus.

This means that if we bifurcate the consumer choices based on only the ones who said they will spend on non-essentials post lockdown relaxations, it can be adjudged that 19% would buy gadgets like laptop, printer, tablet, mobile etc., while another 19% will buy office/school supplies like stationary, mobile accessories, books etc. 15% would buy white goods & appliances like AC, cooler, refrigerator, grinder etc., 4% automobiles (car/scooter), 23% home furnishing & supplies while 8% will spend on fashion & apparels. 12% consumers will spend on other non-essential items.

Of those who will spend beyond essentials post lockdown relaxation, highest number of consumers will buy gadgets, home supplies and office/school supplies

In the second question, consumers in red zones were asked if they are looking at spending post lockdown relaxations in any of the non-essential categories, namely gadgets, office/school supplies, white goods, automobile, home furnishings, fashion etc., how will they purchase them. In response, 33% said they will order via ecommerce while 41% said they will visit a retail store. 9% said they will get it delivered from a retail store while 17% were unsure about it.

Post lockdown relaxation, of those who plan to buy non-essentials, 33% will order via eCommerce while 41% will visit a retail store; 9% will get it delivered from a retail store

For many people, life is inconvenienced because of lack of availability of repair services. For some, they are unable to Work from Home because the laptop they were using broke or the air conditioner or refrigerator at home stopped functioning. These are now must have items in urban Indian homes. The third question in the survey focused on services asking people that, now that the lockdown has been relaxed in many parts of the country and is likely to be relaxed in red zone districts soon, what services will you spend most on in the coming months. 6% said gadget repairs while 21% said air conditioner, cooler, fridge, appliances repair. 16% said beauty services like haircut, 18% said home repair, 9% said automobile service, 2% broadband while 4% said others. 24% said they will not be spending on any of these services.

Post lockdown relaxation, when it comes to services, people will spend most on AC, Fridge, Appliance repairs, Home repairs and Salon/Beauty services

Overall, the numbers in this survey show a big shift in the consumer mindset post COVID-19 lockdown, as 42% now want to get items of need delivered to their doorsteps so that they could follow the social distancing protocols. Also, post the lockdown relaxation, when it comes to services, people will spend most on ac, fridge, appliance repairs, home repairs and salon/beauty services.

In states like Delhi, Bengaluru, Pune, Hyderabad and Mumbai which have been under the lockdown for almost 50 days now, the consumer concerns are the highest where many haven’t been able to get products and services they need. As the lockdown is eased out in red zones post May 17, the survey and discussion feedback indicates that there will be a spike in spending on what is called as the secondary essential products and services outlined in this report. Spending on discretionary products and services that are not of primary and secondary need will continue to take a hit in the short to medium term.