Spending right is also about slashing costs at the right places. Here are simple strategies to help trim monthly expenses without compromising on your lifestyle.
FOOD & BEVERAGES
Share of consumption: 2008 - 40%, 2009 - 30%
Strategies:
- Buy at discount stores.
- Buy staples in bulk.
- Eat less meat, more veg.
- Cut out on junk food.
- Substitute expensive ingredients.
Can help cut cost by 20%
TRANSPORT & COMMUNICATION
Share of consumption: 2008 - 12%, 2009 - 13%
Strategies:
- Combine trips for shopping and entertainment.
- Consider car-pooling.
- Bundle phone, cable, Net services with one operator.
- Shift to lower rate plan if you don’t use a service fully.
- Consider prepaid plans for cell phones if usage is low.
Can help cut cost by 15%
HOUSEHOLD PRODUCTS
Share of consumption: 2008 - 3%, 2009 - 3%
Strategies:
- Buy durables during sales.
- Shop online for gadgets.
- Hold on to upgrades.
- Consider used furniture.
- Mix and match home furnishings across brands.
Can help cut cost by 15%
HOUSING & UTILITIES
Share of consumption: 2008 - 12%, 2009 - 13%
Strategies:
- Shift to a lower interest rate home loan, cut EMI.
- Move to a less expensive location, save on rent.
- Use energy-efficient appliances to cut power bill.
- Insulate to reduce AC and heating costs.
Can help cut cost by 10%
EDUCATION & HEALTH
Share of consumption: 2008 - 9%, 2009 - 11%
Strategies:
- Switch to per-day gym package if not a regular.
- Switch to generic medicines wherever possible.
- Club routine doctor visits.
- Explore online study aids.
Can help cut cost by 5%
APPAREL & FOOTWEAR
Share of consumption: 2008 - 5%, 2009 - 5%
Strategies:
- Switch to private labels and in-house brands.
- Buy at factory outlets.
- Consider semi-formals.
- Stock up during offseason discount sales.
Can help cut cost by 20%
PERSONAL PRODUCTS
Share of consumption: 2008 - 11%, 2009 - 9%
Strategies:
- Consider using grooming products instead of visits to beauty parlours.
- Buy smaller packs of products that are not used frequently.
- Cut down on costly cosmetic treatments.
Can help cut cost by 25%
ENTERTAINMENT
Share of consumption: 2008 - 7%, 2009 - 8%
Strategies:
- Shift from a restaurant to a budget eatery.
- Explore weekend getaways for short vacations.
- Move to morning shows, weekday movie tickets which are cheaper.
- Cut down on expenses on parties and weddings.
- Download music.
Can help cut cost by 30%
Potential savings estimates based on prices in metros; consumption share figures for 2009 are estimates; source for consumption patterns: McKinsey, Technopak, Indicus Analytics.
SPENDING TRENDS IN INDIA
- Consumers are substituting highcost pepper with chilli.
- Fast-food joints like McDonalds have not seen a drop in sales.
- Sales of high-end accessories like branded bags, belts have been hit.
- Kirana stores benefit by offering products on credit.
- Sale of private labels compared to standalone brands is picking up.
- Gyms are launching per-day packages to lure customers.
- Package tours are being preferred by out-bound Indian tourists.
- Advance bookings for air tickets and hotel rooms are going up.
- Weekend getaways from bigger cities is seeing a spurt in demand.
- Last-minute bargains are increasing.
- Upgrades for gadgets, cars and televisions are taking a hit.
- Mp3 players sell more than iPods, illegal music downloads on the rise.
- Big-ticket spending as on property and renovation is on decline.
- Cosmetic sales have seen only a marginal decline of less than 10%.
- Education spending has not been impacted at all.
- 25% increase in sale of milk cartons
- 30% decrease in average travel budgets
GLOBAL TRENDS
- High-cost white pepper is being replaced by black pepper.
- Sale of meal ingredients is growing faster than ready-to-eat meals.
- Sale of in-store labels has gone up by 25% compared with brands.
- Discount stores like Wal-Mart have seen a spurt in footfalls and sales.
- Demand for carbonated beverages and storage products has dipped by 20%.
- The number of US consumers who are buying music CDs has fallen by 17 million in a year.
- Holiday sales have dipped by more than a fourth across Europe and the US.
- Students priced out of four-year colleges migrate to two-year ones.
- There is a 27% increase in number of local customers (within a km) in Britain.
- Chocolate sales in the US, UK growing despite a 10% price increase last year.
- Tobacco sales increased by 9% and alcohol sales by 6% in the UK last year.
- Lipstick sales in the US have increased by 11% in the past year.
- Average ticket sales at soccer matches in the US have risen 18% in one year.
- Spy gadget sales have seen a 15% increase in sales in Europe.
- Cable TV sales have not been affected by slowdown in the US and Europe.
- 20% increase in chocolate sales in the US and UK
- 23% increase in payments for music downloads
