According to Mintel's latest research, despite financial instability, 50 percent of Indian consumers focus on enjoying the present moment and making financial decisions that emphasise immediate gratification. Younger men, in particular, express a greater inclination toward indulgence, with 68 percent of Gen Z urban males spending monthly money on clothing and accessories, compared to 54 percent of Gen Zs overall.
However, the concept of indulgence varies with age and city tiers. According to the research, individuals aged over 45 show an increased preference for spending on health and wellness products compared to other age groups. Additionally, 49 percent of women from Tier 3 cities are allocating more of their budget towards shopping for beauty and personal care products.
Saptarshi Banerjee, Senior Lifestyle Analyst, Mintel Reports India, said consumers were seeking relief from ongoing stress amid rising prices due to global inflation. This means many are now embracing a more pleasure-focused approach to life, looking for affordable indulgences that can bring comfort and solace without being too hard on their wallets.
However, Mintel's research indicates a shift in spending habits of the younger demographic on the horizon: 60 percent of Gen Zs are more likely to cut back on clothing and accessories in the next three-to-12 months than on dining out (52 percent) or beauty and grooming products (50 percent). Banerjee noted that as the fast fashion industry faces heightened scrutiny over sustainability concerns, apparel and accessory brands may succeed more by emphasising durability and reusability.
"Sustainability can effectively resonate with even price-conscious shoppers when coupled with cost savings," said Banerjee.
As medical emergency costs continue to rise, consumers are emphasising preventive healthcare more. Fathers are allocating a substantial portion of their expenses to health and wellness products, driven by the necessity to be prepared for medical emergencies (43 percent in 2023 vs. 35 percent in 2022). However, this increased focus on health and wellness is not exclusive to fathers; mothers are also contributing to this significant surge in spending (46 percent in 2023 vs. 26 percent in 2022) every month.
This trend is prevalent among both working (48 percent) and non-working mothers (46 percent), as compared to non-parents (32 percent). Furthermore, there is a growing trend of health and wellness spending across city tiers, particularly among 42 percent of urban consumers and 45 percent of Tier 3 consumers.
Banerjee continued that most urban consumers (40 percent) recognised the importance of investing in preventive healthcare solutions, such as spending on vitamins and minerals (VMS) and attending health check-ups. The same proportion of those who claim to 'get by financially but don't have much left by the time the basics are taken care of' are also more eager to invest in preventive healthcare to mitigate potential medical expenses.
"Moreover, mothers, in addition to fathers, are actively allocating a significant portion of their monthly spending towards health and wellness to foster a healthy family unit. Brands that offer tailored VMS solutions catering to the entire family's needs, from kids to adults, and pre-packaged food options, can capture parents' interest, particularly mothers, who are spending more on health and wellness products."
