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60% household income decreased, people hold back big purchases: Nielsen

According to the report, people pushed their purchases for durable items but will go ahead with their plans once the lockdown is lifted

Nielsen released the third edition of its report on shift in consumer trends report due to Covid-19. According to the report, the income of 60% of households had been reduced as compared to the pre-Covid period and people are focusing on savings. 24% of households have pushed their purchases by a year. However, 28% said they will go ahead with their purchases when the lockdown is lifted.

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The report suggested a sharp decline in traditional trade as the FMCG category fell by 34% in April. The sharp degrowth of traditional trade channels can be attributed to area/ shop closures — on an average, a traditional retail shop was closed for 12 days in April due to various restrictions and constraints, the report said.

The modern trade also witnessed a slowdown in the two phases of the lockdown. Meanwhile, e-commerce picked up in the second phase of lockdown after being severely impacted during lockdown one.


The report said non-food items were impacted as they were deemed 'non-essential' products. Only hygiene products such as sanitisers, hand wash and floor cleaners saw growth in the non-food category.

The sale of fresh food items was negatively impacted due to supply chain issues, says the report. However, a sharper decline was witnessed for non-veg items. 40% of people said they will avoid consuming non-veg food items.

The study said people will continue to find comfort in the things they are familiar with and ruled out four implications of the social behaviour of consumers. Consumers will look for positivity in times of anxiety and heightened tensions.

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