Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Is consumer sentiment drooping?
Mon, 27 Aug Pre-Open

Worry time seems to be in the offing for the companies producing not-so-essential items as well as for the retailers if recent consumer survey by Ipsos, the world's third-largest market research firm, is anything to go by. The survey highlights that Indians are planning to curtail their spending on non essential items such as eating out, buying branded clothes and going on holidays.

The reason for all this is more than obvious. It is stubborn inflation. And it is not only the prevailing high price situation. With poor monsoon, people are equally worried for the future as well. So, they are being prudent and want to save for the possible rainy days ahead.

While it all looks so clear, many experts do not believe that the consumer sentiments are fizzling out. Some feel that overall consumer sentiment is still not negative. Some are more optimistic and feel that consumer sentiment in India continues to be strong. As a matter of fact, during this Independence Day week, retailers witnessed a huge sale. But, in our view, that should mostly be attributed to huge discounts offered by the retailers. Also, it may be the fear of further price rise that could have prompted this kind of huge response by the consumers.

However, one conclusion from all this is that there exists a great demand. And no one can deny the growing demand for essential as well as non essential goods by the Indian consumers. The only point is that consumers have now started looking for values in the prevailing tough situation.

As far as the business environment is concerned, it continues to remain volatile. The whole industry is waiting for many policy reforms such Foreign Direct investment (FDI) in retail and some other biils. However, considering the recent logjam in parliament, this wait would only be longer. There seems to be no respite from inflation due to a weak monsoon and high interest rate situation.

Now the important question arises what should companies do in this volatile economic environment. How can they address the existing demand or can create more demand? The idea lies in the focus on goods that consumers actually need. And then offer them at reasonable price.

Companies would do well if they reformulate their strategies as per the prevailing situation.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Is consumer sentiment drooping?". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.