As the spirit of Diwali spreads across the country, brands find themselves in a bustling market worth a staggering Rs 90,000 crore, filled with promising opportunities. Qoruz, the influencer marketing platform, has unveiled its comprehensive Diwali 2023 report, revealing the interplay between consumers and influencers. The report provides insights into the impact of influencer marketing on brand promotion during the festive season.
On the collaboration trends, the report unveils that over the past two years there has been a 21% increase in influencer collaborations, reflecting the strengthening of partnerships between brands and influencers. It also highlights that the brands today allocate over Rs 300 crores for influencer marketing during the festive season.
Talking about the report, Praanesh Bhuvaneswar, co-founder and CEO, Qoruz, said, “In the dynamic world of influencers, our Diwali 2023 report underscores the pivotal role of influencer marketing, especially during the festive season. Influencers are poised to be the next significant evolution in the marketing industry. With their innovative thinking and capacity to influence consumer choices, no brand can overlook the impact of influencers.”
When it comes to the engagement with influencers, 80% of Diwali shoppers engage with influencer-led content, reaffirming influencers’ central role in shaping consumer preferences. Additionally, influencer marketing is 1.5x effective on millennials as compared to other age groups such as boomers and Gens X and Z.
The report further reveals that due to the changing consumer behaviours over the past decade, Indian e-commerce has grown by 20x, with a 15x jump in annual transacting user base. This figure spikes during Diwali with 45% of shoppers anticipating increasing their online spending this festive season. However, 50 million e-commerce buyers come from tier 2 cities and lower, while the remaining 25 million are from the nation’s metros.
“Content marketing through the consumer’s device agnostic journey will be critical, and in the upcoming festive season, mobile and moment marketing should be a key focus therein. Second, influencers are considered primarily for mid-funnel marketing. However, considering the breakthrough in the creator economy, and related consumer behaviour, this festive season brands can explore a full-funnel influencer strategy to maximise ROI,” Chaaya Baradhwaaj, founder, managing director, BC Web Wise, added.
The largest influencer marketing spends sector-wise comes from personal care at 20% followed by food and beverage at 16%. Despite this, mobile phones have seen the largest growth in spends during Diwali, up 48% in 2022 compared to 2021. Food influencers from tier-2 and 3 cities have outperformed their tier 1 counterparts. However, Nano influencers recorded a remarkable 9.49% engagement rate during Diwali 2022.
For home decor, Bengaluru emerges as the hub for successful home decor influencer campaigns with nano influencers boasting at 9.09% engagement rate. Furthermore, fashion brands experience heightened engagement, particularly through micro and nano influencers. During Diwali 2022, nano influencers achieved an impressive engagement rate of 7.1%, surpassing their macro and mega counterparts, whose engagement sat at 1.2 and 1.1% respectively.
Moreover, influencer collaborations have seen a 21% increase during Diwali over the last two years. This has culminated in more than 67,000 posts across a network of 22,000 influencers, amassing total engagements of 5.3 million and 3.7 million video views. While 66% of Diwali shoppers make purchasing decisions based on influencer recommendations. User-generated content (UGC) influences 79% of purchasing decisions, underscoring the value of authentic customer relationships.
“In the dynamic world of influencers, authenticity stands out. Brands must forge genuine connections, ensuring shared values with influencers. A collective of micro-influencers often resonates more profoundly than a single celebrity, particularly during festive times,” Sooraj Balakrishnan, head of marketing, Acer, expressed.
Regional language campaigns are effective as 53% of Diwali shoppers prefer content in their regional language, highlighting the importance of linguistic relevance. Meanwhile, the maximum impact is achieved through a combination of paid advertisements and influencer campaigns. However, choosing the right influencer for Diwali campaigns is crucial.