60 per cent affluent population plans to increase discretionary spending
Mumbai: More than half of the affluent population of the country plans to set aside higher amounts for discretionary spending in 2015, according to a survey report released on September 2.
"As many as 60 per cent of affluent consumers in the country plan to increase their discretionary spending in the coming year, second only to China," a VISA survey conducted from September 2013 to December 2013 said.
However, VISA did not disclose how many people were contacted for the survey. The study said that on an average, around nine among 10 affluent Indians set aside Rs 25,000 monthly for discretionary spending on dining, night-outs, holidays and purchasing designer goods. Among them, a whopping 92 per cent spend on fine dining, 80 per cent spend on designer clothes, 79 per cent spent on family holidays and 68 per cent spend on jewellery, it said.
Among the 60 per cent who expect discretionary spending to increase, 49 per cent are likely to increase the budget on family holidays while 45 per cent intend to increase spending on fine dining. Commenting on the survey, VISA's Global Head of Emerging Markets Digital and Group Country Manager for India and South Asia Uttam Nayak said, "The survey results show that affluent people continue to be optimistic about plans to spend more on discretionary items in the year ahead".
The survey reveals that seven out of ten expect to save more in 2015, which demonstrates a good balance between spending and a commitment to growing and maintaining their wealth. At the same time, they also plan to spend 60 per cent of their household income and save or invest the rest. They spend an average of about Rs 4,60,000 per year on household expenses with groceries, shopping and food and beverages being the largest spend categories across all demographic groups, it said.
"Children's education is considered among the highest priorities across all countries surveyed, with nine out of 10 affluent Indians saying that this is a top priority for them," the survey said. According to respondents, credit card spending accounted for 55 per cent of all spends in the fine dining category followed by designer watches (53 per cent), designer clothes (52 per cent), and family holidays (51 per cent).
