After months of pent up demand amid the coronavirus pandemic, consumers are likely to return to the market this Diwali with demand for products in certain categories expected to be high.
After months of pent up demand amid the coronavirus pandemic, consumers are likely to return to the market this Diwali with demand for products in certain categories expected to be high. In fact, two in every three customers exhibit positive sentiments for shopping this Diwali for categories such as mobile phones, consumer electronics and two-wheelers, according to a report released on Tuesday. “65% of all consumers expressed a positive buying sentiment as compared to now, and 28% felt it would remain the same. The apparels category was a positive outlier and had the highest buying priority at 3.11 times the average of all other categories,” according to TRA’s Diwali 2020 Buying Propensity Report.
Other than apparels, and mobile phones, home furniture, jewellery and TVs are also on high priority, the report said. The coronavirus pandemic had a severe impact on retail as the country remained under a nationwide lockdown for two months in one of the strictest shutdowns across the world. While companies faced challenges such as supply chain disruption, lack of workforce, etc, consumers also remained skeptical of discretionary spending amid layoffs and salary cuts.
However, as economic activities have started to resume, and with festivities around the corner, the demand may pick up soon. “Diwali has traditionally been a period of consumption boom as consumers tend to increase spends, and brands scramble to catch their attention. This Diwali will be a deciding factor for many brands, as they prepare trepidatiously for the festive season,” N. Chandramouli, CEO, TRA Research, said. Overall, coronavirus will have a detrimental impact on consumer spending this year with a 5.1% less spend expected this year as compared to last year.
Other than high priority categories for consumers, there is a medium consumer buying propensity for items such as personal accessories, cars, laptops and kitchen appliances, while travel and home renovation remain on low priority.