25% consumers likely to spend more this Diwali: Report

By: |
November 02, 2021 2:16 PM

The apparel category has seen a surge in purchase intent

In the consumer durables category, a number of consumers are looking at repair over replace seeking to extend the appliances’ durability.

With Diwali around the corner, many Indian consumers are ready to increase their spending. Although Diwali won’t be a jackpot for the economy, the festival will certainly lead to relatively higher economic activity and accelerate the return to normalcy, according to Market Xcel survey on retailers or consumers sentiment around Diwali 2021. According to the survey findings, one-fourth(25%) of the consumers are looking at increased spending while two-third (66%) are not so positive. Several factors such as rising inflation and waning income and career security are still playing on many consumer minds, the report added.

“It’s very important to understand the consumer sentiment as we approach Diwali 2021 in couple of days. The pandemic has led to multiple generational consumer shifts and behavioural changes some of which are permanent while the rest will over a period crawl back to normal. We are definitely seeing some tentativeness among consumers as they remain wary of what is ahead, not just on the pandemic but macro-economic factors like rising inflation. What that means for brands and businesses is to engage or assure the customer in newer, deeper ways and fully convince them on the economic value or rationale of their purchase decisions,” Vishal Oberoi, CEO, Market Xcel, said.

The accelerated move to online caused by the pandemic is here to stay, the report added. While apparel has seen a surge in purchase intent, the consumer sentiment for real estate remains mixed. In the jewellery category, gold is seeing more pick-up in demand than diamond. However, smartphone category is still not seeing very high demand due to limited stock availability, among other issues.

As per the report, automotive growth has been hampered by supply side issues such as semiconductor shortages. In the consumer durables category, a number of consumers are looking at repair over replace seeking to extend the appliances’ durability. There is growth in austerity among consumer who got accustomed to work at home lifestyle.

“Diwali 2021 is unique in that it comes at a time when the world and India is crawling or attempting to get back to the normal unlike 2019 which was pre-pandemic and 2020 which was bang in the middle of the pandemic. We believe the findings call for brands and businesses to spend more time in understanding the new consumer who is emerging across categories with changed needs and different expectations. The success ahead as much depends on how well and quickly brands and businesses tune themselves to the above,” Ashwani Arora, executive director, Market Xcel, stated.

Read Also: FlowGuard Plus launches #PlumberKaSaathi campaign to unite the plumber community in India

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