This is how the Indian consumer will shop this festival season


After a long wait, there is festive excitement and companies from different categories of consumers are hoping to make the most of this much-needed positive mood in the post-pandemic world. The Indian consumer is just as excited and ready to spend as the big local festivals – Navratri, Dusshera and Diwali – are around the corner in the coming weeks.

To make the most of this craze, leading companies – both online and offline – have launched their discount promotions in India on a massive scale. According to a recent Forrester report, the Indian holiday season will generate $ 9.2 billion in online sales, a whopping 42% increase from 2020 year over year.

From a marketing ecosystem perspective, that would mean the Chief Marketing Officer, Jitender Miglani, Senior Forecast Analyst at Forrester at The Drum, is spending more on both offline and online channels. He explains how the connected ecosystem will evolve, adding, “Marketplaces will spend more to drive traffic to their websites, manufacturers will spend more to promote their brands, and marketplaces sellers will spend more campaigns to promote their brands. Output demand generation. “

The festive line-up

  • This year, Navaratri begins on October 7th, Dusshera falls on October 15th, and Diwali is celebrated on November 4th.

  • During this month-long holiday season, possibly the busiest time of the year, retailers and brands are offering heavy discounts and great deals on their products as consumers usually wait for their big purchases.

  • As every year, two of the largest online retailers, Flipkart and Amazon, launched their online sales events Big Billion Days (BBD) and Great Indian Festival (GIF) respectively to grab consumer attention during this time.

The changing habits of Indian buyers

  • One of the biggest changes the pandemic brought about has been the speed and speed with which people have come to shop online. Buyers are now much more comfortable shopping online than ever before.

  • According to Miglani, “the post-Covid world has removed several inhibitions from online shoppers, resulting in a much faster adoption of digital payments.”

  • Shopping online is safer, saves time, and is easier than visiting online stores – all of which have resulted in wider adoption of digital in non-standard categories such as groceries, clothing, and general merchandise.

Big change: online sales growth beyond the subway

  • Interestingly, most of the market growth during the pre-pandemic period was driven by buyers from the metro and tier 1 cities, which is no longer the case, stresses Miglani. Online retail will see strong growth this year driven by consumers in tier 2 and tier 3 cities.

  • According to the study, users from tier 2 and tier 3 cities are making a significant contribution to market growth. It is estimated that there will be around 75 million online shoppers this holiday season, with 50 million from tier 2 cities and beyond.

Play the developing class

  • Growth in the smartphones, consumer electronics and large appliance categories will be strong as consumers typically wait for the holiday season to update their devices with new product launches in India.

  • While smartphones are still the largest category, food is growing the fastest, which in turn is a post-pandemic development.

  • According to the study, grocery retail will emerge as the fastest growing category as most of the festive themed categories within the grocery store go online, aided by the increase in shopping cart size over that period.

  • As the economy reopens, casual clothing shopping is returning, albeit on a small scale, and therefore fashion, the third largest category, is expected to perform better this year compared to last year.

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