how India’s top 1% spent their money
the pandemic affected everyone’s physical and mental health. it felt like a never-ending test that people had to endure. even if it was the right thing to do, staying locked indoors was difficult. and everyone was eager to step out of their house and hit the beach or head to the hills. anywhere but here. anything to escape the monotony of this new “normal”.
as the second wave subsided, everyone heaved a collective sigh of relief. for CRED members from Delhi, Mumbai, Bangalore, Pune, Kolkata and Hyderabad, this sigh of relief reflected in their spending. it’s no surprise then, that the total share of how much CRED members were spending on leisure and travel out of their total spends, grew from 14% to 21% during April and May 2021.
CRED’s study reflected many such insights into consumer behaviour. it was conducted between — April 1, 2020 to May 31, 2020 (the first wave of pandemic), January 1, 2021 to March 1, 2021 (pre-second wave), and April 1, 2021 to May 31, 2021 (second wave).
some key findings:
here’s what Kunal Shah, founder, CRED, said about the findings of this study, “affluent consumers are relatively insulated from economic headwinds. While CRED members - a community of financially responsible Indians - curtailed spending in the first wave, they were more confident spenders during the second wave as they increased or maintained consumption before and during this period. it is clear that as consumers, especially older, get comfortable spending online, merchants with strong digital operations, offering experiences and smart payment options are well-positioned to capture these spends.”
while the worst may be behind us, this still isn’t the time to throw caution to the wind. not completely, at least. so, as you go on that long awaited dinner date in your favourite restaurant, remember to mask up, stay safe and follow all the rules.