The total festive season spending in 2022 is likely to be over $32 billion as 1 in 3 Indian households are willing to spend over Rs 10,000 this festive season, a survey by Local Circles has revealed. While there is a consumer segment that is feeling the squeeze due to the high price rises, the affluent households, on the other hand, with high disposable incomes are all ready to make up for the previous festive period they have lost due to the COVID-19 pandemic, the survey pointed out.
The nation-wide survey by Local Circles received over 58,000 responses from household consumers located in 362 districts, of which 64% respondents were men while 36% were women. Notably, 44% respondents were from tier 1, 33% from tier 2 and 23% respondents were from tier 3, 4 and rural districts.
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How much is the consumer willing to spend this festive season?
The first question posed to the respondents was how much are they willing to spend on festive season beyond their regular monthly spending. Answer: 3% households are planning to spend Rs 1,00,000 or more; 9% to spend between Rs 50,000 and 1,00,000; 15% between Rs 20,000 and 50,000; 6% planning to spend between INR 10,000 and 20,000; 17% to spend between Rs 5,000 and 10,000; and 9% up to Rs 2,000. There are also 6% household respondents who will spend but are undecided about how much.
The survey further revealed that 35% of the respondents are not planning to spend anything in this festive season. The results of this poll are indicative of the fact that the divide may be rising with one-third spending robustly (Rs 10,000 or more), one-third planning limited spending (up to Rs 10,000) and one-third not spending at all.
What’s on the wishlist?
The survey further shed light on the wishlist of the respondents. As many as 35% of respondents are planning to buy Diwali supplies like diyas, lamps and flowers, among other things, and 26% are planning to spend on gift packs, gourmet foods and dry fruits, among other things. Some 6% wanted to go for goods and appliances; another 6% preferred smartphones and consumer electronics; 4% were willing to spend on jewellery, and another 4% on automobiles.
After getting badly affected due to the COVID-19 pandemic, the services sector also seems to be a popular option this season. Spending on services saw a boost in the survey with home repair and travel as top categories of spend. The survey revealed that 24% respondents to the question of wishlist revealed plans to travel, whether by flight, train or road; 20% are planning to undertake home repairs; 8% plan to get their homes painted; 10% plan to avail of eating out options or home deliveries; personal care or grooming at saloon is part of wish list of 8% respondents.
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Mode of shopping this season
According to the survey, a large segment of respondents are willing to visit malls or stores or markets for the purchase. As many as 49% of household consumers are keen to make physical purchases in this festive season. This is higher than the 40% who opted for it in a similar survey last year. Moreover, 33% of the respondents in this survey preferred online shopping – a 6% dip from last year’s survey.
While safety and convenience saw 13% opting for home delivery after making selection from online catalogue by local stores, this year the demand for the channel has come down to 5%, the survey revealed.
