India’s Buying Propensity Soars in January 2017, Dips Sharply in March

Among eight cities, Delhi has lowest Buying Propensity; Mumbai scores highest
Bangalore, April 18: India’s Buying Propensity IndexTM (BPI) for the quarter ending March 2017 stood at 0.42 (measured on a scale between +1 to -1), a fall of 16% BPI over Q3 which was at 0.50.
The BPI is a result of a primary research conducted every quarter among 3,000 consumer-influencers across eight Tier–I cities in India. 
December, the month after demonetization, had witnessed a sharp fall to the lowest BPI at 0.26 in the months since April 2016. Prior to that, there had been a steady climb in BPI from June at 0.37 to November at 0.68. January 2017 saw a noticeable rise to 0.47, the highest in FY17 and there has been a continuous fall of the propensity to buy in subsequent months, with February 2017 showing 0.43 on lesser-than-expected relief in the Union Budget. The Buying Propensity Index fell further to 0.35 in March, a slip of nearly 20% and perhaps the nation has not taken the landslide win in UP too well, which snuffed out all opposition for the ruling party juggernaut.  Other factors such as the lowering estimates of India’s 2016-17 GDP, high retail inflation, and IIP contraction could have played a role too.
Commenting on the findings, N. Chandramouli, CEO, TRA Research (a Comniscient Group Company), said: “The last six months would be a very memorable period for those living in India. The very fact that India’s quarterly BPI for Q4 ends at the same number as Q1 may be a bit misleading, as this period has witnessed much buying recalibration by all, and sharply contrasting sentiment by many. However, the clear indication is that the worst of the DeMo effect is over.”
“There are sharp contrasts between Mumbai and Delhi, with the former showing the highest BPI among eight cities and Delhi showing the lowest, with a gap of 114% between them. The other important finding of this Quarter is that in March the sentiment of country’s buying or Environmental BPI is the second lowest in six months, standing at 0.28.”, Chandramouli added.
With regard to the city-wise BPI, the highest Buying Propensity was seen in Mumbai with Q4 BPI at 0.58 (Highly Positive) and Pune with Q4 BPI 0.54. The lowest Propensity to Buy was seen in Delhi with BPI at 0.27 and Ahmedabad with BPI at 0.30, showing extremely low propensity for purchase. 
About Buying Propensity IndexTM
The Buying Propensity Index (BPI) is a measure of the existing buying sentiment or ‘keenness to buy’ of India. The current Index represents the months of January, February and March 2017. The BPI is a detailed analysis of three factors: the Transactional and Aspirational Buying Sentiment of the Indian consumer along with the Environmental Buying sentiment of the country. The BPI value can range between -1 and 1 ranging from a completely Negative Sentiment to a fully Positive Sentiment.
Buying Propensity, a concept developed by TRA Research, attempts to understand the overt, covert, and contextual buying drives of consumer-influencers, the 10% of the population that influences the balance 90%. Buying Propensity is a natural pull that manifests on the basis of Trust (based on reasons to buy) and Attractiveness (based on an inherent magnetic pull to be bought). These two combine to make the fundamental substrate on which all buying decisions are made.
About TRA Research (www.trustadvisory.info)
TRA Research, a Comniscient Group company, is a Data Insights and Brand Intelligence company dedicated to understand and analyze stakeholder behavior. TRA Research’s Buying Propensity Index is a syndicated study which surveys 3,000 consumer-influencers across eight cities in India conducted every quarter. Buying Propensity measures the Transactional, Aspirational and Environment sentiments towards making buying decisions and is a direct measure of propensity to buy. TRA Research, India’s leading data insights company, also publishes The Brand Trust ReportTM and India’s Most Attractive BrandsTM.

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