India buying intent loses steam in August, falls 0.60 per cent: TRA Research

MUMBAI: India’s buying mood appears to be losing some steam, with the India Buying Intent (India BI) index declining 0.60 per cent month-on-month to 98.80 in August from 99.40 in July, according to TRA Research.

The August reading was classified as “Decelerating”, as it remained below the three-month trend of 99.27. The index has now declined for two consecutive months, slipping from 99.60 in June to 99.40 in July and 98.80 in August.

Of the 35 super-categories tracked, 18 contracted in August, compared with 12 in July. However, the movement was not uniform across categories.

Technology saw its index rise from 6.3 in July to 7.1 in August, while Automobile climbed from 10.3 to 10.9. Consumer Appliances also strengthened, moving from 2.4 to 2.9.

In contrast, Food & Beverage fell from 10.4 to 9.4, Personal Accessories declined from 5.8 to 4.8 and FMCG slipped from 9.1 to 8.2. Consumer Electronics eased from 14.0 to 13.4, although it remained well above its June reading of 11.9.

TRA Research chief executive officer N. Chandramouli said August showed an increasingly selective consumer market, with buying readiness varying significantly across categories.

“Automobile has strengthened for a second month, Technology has moved up sharply, and Consumer Appliances has also gained. For marketers, this is a market that needs to be read category by category rather than through the national number alone,” he said.

Automobile recorded one of the strongest improvements, with its India BI rising from 7.8 in June to 10.3 in July and 10.9 in August. Consumer Electronics, meanwhile, retained much of the recovery it recorded in July despite moderating in August.

At the brand level, Hyundai recorded the largest positive movement in August, gaining 298.7 points month-on-month. TVS Motor Company followed with a gain of 273.4 points, while Dell Technologies rose 242.4 points.

Toyota gained 209.2 points and Honda rose 192.2 points. Voltas, Lenovo, HDFC Bank, Royal Enfield and IFB completed the top 10 gainers.

At the other end, Maruti Suzuki recorded the sharpest decline, falling 348.0 points. Titan Company dropped 311.1 points, followed by Amul at 259.7 points, LG at 250.9 points and Blue Star at 250.9 points.

Sony, State Bank of India, Life Insurance Corporation of India, Hitachi and boAt were among the other major decliners.

The brand-level movements highlight the growing divergence within categories. Automobile brands, for instance, appeared on both sides of the momentum table, with Hyundai and Toyota among the strongest gainers while Maruti Suzuki recorded the biggest decline.

Among all super-categories, Services recorded the largest percentage increase in August at 128 per cent, followed by Transportation at 99 per cent and Healthcare at 46 per cent. Print Media saw the steepest decline at 67 per cent, followed by Dinnerware at 49 per cent and Alcoholic Beverages at 41 per cent.

The underlying buying mindset remained largely unchanged. Conscious evaluation accounted for 62.61 per cent of buying decisions in August, compared with 62.67 per cent in July, while instinct accounted for the remaining 37.39 per cent.

Chandramouli said marketers would need to sharpen their targeting as consumer intent becomes more fragmented.

“For marketers, August calls for sharper allocation by geography, in fact even by zones in a city. One has to deliberate more on micro-marketing and micro-advertising with promotions aimed at the most amenable audiences and city-belts,” he said.

The monthly India BI tracking is designed to help brands, agencies, media houses, consultants, researchers and business analysts assess shifts in consumer willingness to buy. The index tracks Trust and Desire across brands, categories and sectors, providing an early view of emerging consumer trends, competitive shifts and changes in buying behaviour.