A report from Rediffusion indicates that 36.18% of people plan to raise their Diwali spending this year compared to last year. New clothes, garments, and accessories top the list of desired items, followed by personal gifts, home décor, electronics and jewellery.
As Diwali draws near, the festive atmosphere in India is electric, with consumers poised to spend more this year.
According to a report by Rediffusion, 36.18% of respondents plan to increase their spending compared to last year, signalling a rise in consumer optimism. In contrast, 35.02% intend to maintain their current spending levels, while 29.52% are preparing for tighter budgets due to inflation.
The report reveals several intriguing trends in festive shopping. New clothes, garments, and accessories are the most desired items, with 86.35% of respondents planning to purchase in this category. Personal gifts follow closely at 72.84%, highlighting the tradition of giving during Diwali. Home décor also ranks high, with 70.83% prioritising it.
About 60.92% plan to invest in electronics. Additionally, 48.13% of consumers are interested in jewellery, which carries significant cultural importance during the celebrations. Notably, 33.62% of respondents are considering buying new vehicles, with a preference for popular four-wheelers (33.05%), luxury cars (18.88%), and two-wheelers (48.07%).
A notable shift towards hybrid shopping behaviour is emerging, with 57.45% of consumers opting for a mix of online and offline shopping. Only 22.29% prefer exclusively physical stores, while 20.98% choose to shop online.
Millennials and Gen Z lead the online shopping trend, reflecting a generational change in purchasing habits.
Digital platforms are playing a critical role in influencing purchasing decisions. A significant 53.69% of respondents are swayed by social media, particularly Instagram and Facebook. Additionally, 50.80% report that online advertisements are essential in their decision-making process, while 43.85% are influenced by traditional recommendations from family and friends. Although television and print ads still hold relevance, they are less impactful compared to digital sources, with 41.24% recognizing their influence and only 26.34% finding in-store promotions compelling compared to online options.
In terms of home décor preferences, wall hangings are the top choice at 52.24%, followed by furniture (31.84%) and carpets (31.26%). Women exhibit a stronger inclination toward home décor purchases (73.31%) than men (68.75%). Specific items like torans and wallpaper attract more female buyers, while men typically purchase carpets and wall hangings.
High-income consumers (earning over Rs 2,00,000) show a preference for furniture and paint, with 87.06% of paint buyers opting for in-person shopping. Conversely, those with lower incomes (below Rs 50,000) tend to gravitate toward refrigerators and home appliances.
This season also sees a growing emphasis on environmental consciousness among shoppers. A substantial 80.70% of fashion buyers prefer eco-friendly products, and 81.13% of electronics shoppers share this sentiment.
However, inflation remains a significant concern, with 80.66% of consumers stating that rising costs have affected their spending decisions. When it comes to jewellery purchases, 38.10% are motivated by discounts, while 31.53% are influenced by tradition and cultural significance, emphasising the need for brands to tailor their marketing strategies to align with consumer motivations.
The report concludes that more than 50% of respondents are set to spend over Rs 50,000 on gifts this Diwali, showcasing strong enthusiasm among consumers. The interplay of tradition, optimism, and digital influence creates a favourable outlook for retailers. To make the most of this crucial shopping season, brands must adapt to changing trends and meet the diverse preferences of Indian consumers.
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