Russia-Ukraine war biggest concern for Indians: Kantar

The invasion of Ukraine remains the number one concern of people in India followed by economic worries and the cost of living crisis, says the finding by Kantar. Asked to spontaneously share their concerns, 37 per cent of people mentioned the war, followed by 29 per cent mentioning economic issues, as their top concerns currently. Climate and environmental issues have also emerged among top three concerns. Covid-19 is no longer seen as a pressing issue like rest of the world, except in China where lockdowns are just lifting.

Kantar's Global Issues Barometer study is a detailed analysis of 800 people's attitudes in India contrasted to 11,000 people across 19 countries (representing 68 per cent of global GDP) as they strive to adapt to the tempest of global events. The study asked open-ended questions to understand peoples' real opinions and used Kantar's TextAI technology to understand and analyse the responses.

The war in Ukraine is currently the biggest concern in India like every geographic region surveyed. As expected, the concern is much lower than the European counterparts. There is a high correlation between concern and proximity. A total of 64 per cent of people across the globe mentioned the war as a concern while only one in three of India's (37 per cent).

Talking to Bizz Buzz, Soumya Mohanty, Managing Director & Chief Client Officer- Insights Division, Kantar, says, "Macro issues like inflation, climate and Ukraine war are cutting through and have an impact, but Indians feel safer and more secure than rest of the world."

Elaborating it, he said that high inflation is right here, right now is affecting increasing numbers of people. People look up to brands to help them wade through. On Climate change, he said that no longer far away, or a lifestyle choice. The need to act is obvious; people expect it of you and need help to do so.

Coming on Ukraine war, he said that while we are not directly impacted by it, its impact on the commodity pricing is felt

Covid was a global pandemic, and a personal experience. It is seen as a one in series of major disruptions. But having seen the worst during pandemic, our benchmark of 'what affects us' has raised. So, there is still a sense of optimism that future will be better.

Asked how are global issues/concerns impacting India vis-à-vis the global market/ western countries, he replied that Climate and Cost-of-living crisis are worrying Indians more.

On which sectors/brands are more likely to be hit as a result of the changing consumer psyche, he says that with prudence settling in, discretionary spends are likely to be trimmed down. So the impact is likely to be more on high value, large ticket, non-essential items. For these sectors, it will be imperative to give a strong reason to buy -which can be emotional and aspirational.

As we understand the study will come out in two waves, what are some of the significant changes that you have tracked as compared to the first wave, since we are on the second one?

Replying to it, Mohanty said, "Two things which we see changing in a month are: a. Reduced concerns around war and b. increased concerns around inflation and cost of living which is in line with how we see commodity prices and cost of living increasing."

Eco-anxiety is consumer consciousness towards climatic changes. It has been there for a while, but one would expect it to take a backseat amidst rising inflation. On the contrary, what we notice is that people haven't forgotten about it, he said

The United Nations has been laying a lot of stress on sustainability, what steps should brands be taking to address sustainability/ eco anxiety?

According to Mohanty, "First and foremost, expectation from brands is to provide green but affordable solutions. Consumers are not looking for structural changes like solar panels etc. Secondly, they expect brands to be more energy efficient & reduce their carbon footprint."

What are some of the key learnings for brands that are coming out through the study?

Well, for brands, the key learning is to remain relevant. In the times of uncertainty, familiarity lends reassurance. This is something we witnessed even during Covid. Staying true to the core purpose, recognizing what matters in people's lives and being relevant to the current needs is going to drive success, he said.

What are some of the immediate challenges that brands would face in the current inflationary economy and even more steep price rise is expected in the near future? How can they counter this pricing where there is a possibility of consumers getting conservative on spend?

"We see prudence settling in and discretionary spends are likely to be trimmed down. The impact is likely to be more on high value, large ticket, non-essential items. For these sectors, it will be imperative to give a strong reason to buy -which can be emotional and aspirational," he replied.

Are we expecting to see brands down trading, shrink their package size to tackle inflation? What are the factors that will drive the consumers to make that purchase?

Different brands, he went on, would use different strategies, some may trim down pack size, others would increase the price. Consumers look for return that they will get. This can be either functional or emotional. The pay off has to be rightly articulated and communicated to consumers, and this would differ by categories…can be sustainability for beauty and skin care, price equation for large ticket or quality for F&B.

The cost-of-living crisis is #2 on people's minds. Price increases in fuel, food & drink and household bills have been noticed the most. Compared to the world, Indians feel the pinch of price increase on white goods more.

While 35 per cent of the population report their household financial situation is deteriorating, 46 per cent believe the general economic outlook of their country is negative right now. People are struggling to meet their living costs, with 32 per cent of households experiencing difficulties meeting their monthly outgoings and 11 per cent unable to meet their commitments. The problem looks set to continue, a further 71 per cent of people believe inflation will continue to rise even further. But there is sliver of hope as two third of people in India feel secure in their jobs and expect pay rise that will match inflation.

Climate inaction is causing remarkably high levels of distress with more than half of people experiencing eco-anxiety. Two-thirds of the population believe businesses have a responsibility to solve the climate crisis, while 84 per cent of consumers want to buy environmentally sustainable products but need brands to do more work on affordability.