As Diwali approaches, the festive spirit in India is palpable, with consumers ready to embrace the season with open wallets. 36.18% of people plan to spend more this year compared to last, reflecting a surge in consumer optimism, as per a report by Rediffusion. Meanwhile, 35.02% expect to maintain their spending habits, while 29.52% are bracing for a tighter budget, likely due to inflationary pressures.
What’s on the shopping list?
According to the report, the festive shopping landscape reveals intriguing trends. New clothes, garments, and accessories are the most sought-after items, with 86.35% of respondents indicating plans to purchase in this category. This is closely followed by personal gifts at 72.84%, emphasising the tradition of giving during Diwali.
In addition to fashion, home décor is also a priority for 70.83% of shoppers, showcasing an interest in sprucing up living spaces for the celebrations. Not to be overlooked, electronics come in strong, with 60.92% planning to invest in gadgets and appliances, while jewellery attracts 48.13% of buyers, underscoring its cultural significance during the festivities.
Interestingly, new vehicles have captured the attention of 33.62% of respondents, indicating a substantial segment willing to make big-ticket purchases this season. This demographic primarily gravitates toward popular four-wheelers (33.05%), luxury cars (18.88%), and two-wheelers (48.07%).
Online vs. offline shopping preferences
In a notable shift towards hybrid shopping behaviour, 57.45% of respondents prefer a mix of online and offline shopping. While 22.29% choose to shop exclusively in physical stores, 20.98% are opting for online purchases. Notably, Millennials and Gen Z dominate the online shopping demographic, reflecting a generational shift in shopping habits.
The influence of social media
Digital platforms are wielding significant influence over purchasing decisions. A striking 53.69% of respondents are swayed by social media, with Instagram and Facebook leading the charge in shaping consumer preferences. Additionally, 50.80% of respondents report that online ads play a crucial role, while traditional recommendations from family and friends still resonate with 43.85% of shoppers.
Television and print ads remain relevant but are overshadowed by their digital counterparts, as 41.24% acknowledge their impact, and 26.34% find in-store promotions less compelling compared to online influences.
Insights on home décor purchases
When delving into home décor preferences, wall hangings top the list at 52.24%, followed by furniture (31.84%) and carpets (31.26%). Interestingly, women (73.31%) show a stronger inclination toward home décor purchases than men (68.75%). However, specific items like torans and wallpaper see more female buyers, while men predominantly purchase carpets and wall hangings.
Higher-income consumers (earning more than Rs 2,00,000) demonstrate a preference for furniture and paint, with 87.06% of paint buyers favouring in-person shopping. Conversely, those with lower incomes (below Rs 50,000) gravitate toward refrigerators and home appliances.
Sustainability and environmental consciousness
A notable trend emerging this season is the increasing environmental consciousness among shoppers. 80.70% of fashion buyers express a preference for eco-friendly products, indicating a broader shift toward sustainability. This concern extends to electronics as well, where 81.13% of buyers prefer sustainable options.
The impact of inflation
Inflation is certainly on the minds of consumers this season. A significant 80.66% report that rising costs have affected their spending decisions, with 30.42% expecting to increase their holiday spending by 25-50% due to these economic pressures.
When considering jewellery purchases, 38.10% of respondents are driven by discounts, while 31.53% are influenced by tradition and cultural significance, further emphasising the need for brands to align their marketing strategies with consumer motivations.
Conclusion
With over 50% of respondents planning to spend more than Rs 50,000 on gifts this Diwali, it’s clear that Bharat is embracing the festive season with a robust mindset. The convergence of tradition, consumer optimism, and digital influence paints a promising picture for retailers as they prepare for one of the most important shopping periods of the year. As trends evolve, brands will need to adapt, ensuring they resonate with the diverse and dynamic preferences of the Indian consumer.