60% of affluent Indian consumers plan to increase discretionary spending

Mumbai: More than half of the affluent population of the country plans to set aside higher amountsfor discretionary spending in 2015, according to a survey report released here today.

“As many as 60 per cent of affluent consumers in the country plan to increase their discretionary spending in thecoming year, second only to China,” a VISA survey conducted from September 2013 to December 2013 said.

However, VISA did not disclose how many people werecontacted for the survey.The study said that on an average, around nine among 10affluent Indians set aside Rs 25,000 monthly for discretionaryspending on dining, night-outs, holidays and purchasingdesigner goods.

Among them, a whopping 92 per cent spend on fine dining,80 per cent spend on designer clothes, 79 per cent spent onfamily holidays and 68 per cent spend on jewellery, it said.

Among the 60 per cent who expect discretionary spending toincrease, 49 per cent are likely to increase the budget onfamily holidays while 45 per cent intend to increasespending on fine dining.Commenting on the survey, VISA’s Global Head of EmergingMarkets Digital and Group Country Manager for India and SouthAsia Uttam Nayak said, “The survey results show that affluentpeople continue to be optimistic about plans to spend more ondiscretionary items in the year ahead”.

The survey reveals that seven out of ten expect to savemore in 2015, which demonstrates a good balance betweenspending and a commitment to growing and maintaining theirwealth. At the same time, they also plan to spend 60 per centof their household income and save or invest the rest.

They spend an average of about Rs 4,60,000 per year onhousehold expenses with groceries, shopping and food andbeverages being the largest spend categories across alldemographic groups, it said.

“Children’s education is considered among the highestpriorities across all countries surveyed, with nine out of 10affluent Indians saying that this is a top priority for them,“the survey said.

According to respondents, credit card spending accountedfor 55 per cent of all spends in the fine dining categoryfollowed by designer watches (53 per cent), designer clothes(52 per cent), and family holidays (51 per cent).

PTI