Indians are spending more on media and entertainment: CMS consumption report
Apr 29, 2024
New Delhi [India], April 29 : Indians are spending more on media and entertainment. A consumption report by CMS Info Systems says the media and entertainment sector has grown by 29 per cent in the financial year 2024. The report further suggests that the average spending of Indians in the entertainment sector has gone up by nearly 100 per cent.
According to industry experts, this surge is attributed to the popularity of Over-the-Top (OTT) platforms and the post-pandemic return of audiences to theatres. The report underscores a shift in consumer trends, with Indians diversifying their spending habits beyond essential items to include both discretionary (luxury goods) and non-discretionary (essential items like food) purchases.
The report further highlights that with the growth in the economy and increased income, Indians are moving beyond the 'roti, kapda, makaan' paradigm and increasingly spending on both discretionary (luxury goods) as well as non-discretionary (essential items like food) goods.
The latter is endorsed by a robust 16.76 per cent annual growth in the average spending in the FMCG (Fast-moving consumer goods) sector in FY 24, which is a remarkable recovery compared to the 21.94 per cent decline observed in FY 23.
The travel industry is on the rise in India with an annual growth of 6.36 per cent in the average spending in the aviation sector and 8.16 per cent annual growth in railway sector spending during FY 24. Over two years, from FY 22 to FY 24, the aviation and railway sectors have witnessed 27.42 per cent and 56.35 per cent growth respectively in average spending.
"The Indian economy continues to be driven by consumption and we are observing a robust growth with evolution in spending patterns. The Indian consumption story is expected to play out robustly in the FY 25, where sectors like FMCG, Aviation, and E-commerce would drive stronger consumption growth" said Anush Raghavan, President, Cash Management Solutions, CMS Info Systems.
The report highlights that the Indian consumption story is undergoing a transformation as evidenced by the slowing pace of decline in e-commerce spending in FY 24. The average spending in e-commerce declined by 14.61 per cent in FY 24, earlier in FY 23 it declined by 25.44 per cent.
The metro cities continue to dominate India's consumption spending in FY 24 with a 10.37 per cent increase in average ATM withdrawals for spending, which is closely followed by a 3.73 per cent increase in Semi-metro locations.
As India's consumption story evolves, driven by changing consumer behaviours and spending patterns, stakeholders are observing the shifting dynamics and their implications on various sectors of the economy.
