A recent report from CLSA on urban consumption patterns suggests a shift in spending preferences, particularly among younger Indians. The analysis highlights that traditional categories like QSR (quick service restaurants) and FMCG (fast-moving consumer goods) are witnessing tepid sales. Instead, there is a notable move towards new spending avenues such as events, travel, dining out, luxury goods, and consumer electronics.
Key insights from the report include the following:
- Consumption has shifted significantly towards high-ticket items like travel, luxury and premium goods, fashion, cosmetics, and electronics.
- Over 100,000 individuals are ahead in the ticket queue for events priced between $50 and $400.
- Several major shows have sold out quickly, including three events with over 50,000 tickets each, priced at an average of $75. Resale tickets are currently being sold at five times their original price.
- Popular singer Diljit Dosanjh sold over 250,000 tickets at an average price of $90, while concerts for international stars Dua Lipa and Bryan Adams saw rapid sell-outs.
- According to the report, four concerts alone saw ticket sales exceed ₹350 crore to ₹400 crore, accounting for over 40% of the incremental quarterly sales of listed QSR companies.
- The World Cup and IPL cricket events also saw a similar surge in ticket demand and sales frenzy.
The data suggest a strong shift in urban spending patterns, reflecting changing priorities and a growing preference for entertainment and luxury experiences over traditional consumption categories. This trend may have long-term implications for businesses in the QSR and FMCG sectors, as discretionary spending continues to move towards lifestyle and entertainment segments.
