WHY DIWALI IS THE SHOPPING SEASON IN INDIA
Diwali is typically a five-day long celebration and has become the shopping season in India. Dhanteras, which is one of these five days, is considered to be an auspicious time to purchase gold and silver objects. It is also customary to wear new and extravagant clothing on the day of Diwali. During these days, Hindus welcome Lakshmi, the goddess of wealth and prosperity into their homes, which has a great significance for shopping and is very important this year especially given the current economic slump.
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Diwali, Dussehra, Navratri, and Dhanteras are the peak of the shopping season in India throughout the months of October and November. Consumers generally tend to take advantage of this time of the year to hunt for impulsive buys, as well as to finally purchase those pricey things they’ve been eyeing all year and consider it to be the best time for shopping. After noticing years of offers and discounts during Diwali, customers have grown to expect deals and promotions during this time, and they are more than happy to save their holiday shopping till then.
Retailers as well, reserve their biggest and best discounts and special offers for the Diwali time. To create these discounts, sellers would use self-service platforms like lightning deals. Heavy retail discounts are offered in both offline and online businesses at this time to entice customers who are shopping for themselves or buying gifts.
As more customers get familiar with ecommerce, the percentage of online purchases over the Diwali period has gradually grown in recent years. Flipkart’s Big Billion Sale and Amazon’s Great Indian Festival have become associated with the festive season. In reality, the number of buyers during Diwali has increased in recent years, owing to enticing internet deals and the ease of delivery. Although earlier it was only customers from metropolitan cities shopping online during the festive season, consumers from other regions who shop online have also steadily begun increasing. To avoid any issues, online retailers have been fine-tuning their marketing tactics and improving operational capacity well in advance of the holiday season.
For both buyers and sellers, Diwali is the most important holiday of the year. Buyers want to celebrate Diwali and are in a festive mood to spend money on the items they like, thus sales are different from the rest of the year. For every seller, this is the busiest time of year, when orders and sales skyrocket. The seller can sell a wide range of items and provide discounts to entice consumers.
Several surveys have revealed that it is online marketing that affects consumer behaviour the most during this season, including OTT video streaming platforms and mobile applications. Social media and Influencer Marketing is another highly influential mode of advertising during this period of time.
● The Diwali season discounts are something sellers eagerly anticipate. There is already a purchasing mood in the market, and that is why businesses spend millions on marketing and promotions, resulting in massive sales growth. In several areas, including electronics, home appliances, and apparel, sales increase by as much as 3–5 times.
● Issues such as delayed pickups and delivery develop as a result of increasing sales. However, during the last three to four years, brands have figured out how to effectively prepare for rising traffic. Brands. start planning two months ahead of time. They normally receive instructions from their marketplace operations teams with tips and instructions for handling Diwali orders.
● This year, with Covid still present around us, even though it is expected that celebrations will be low-key, spending during the festival is likely to remain high. This is because due to travel and gathering restrictions, shopping has become one of the only remaining ways to enjoy for consumers, which might actually make the sales rise more than the preceding years.
● Gifting is a popular approach to share holiday cheer, especially when gatherings are smaller than normal. Gifting amongst families is a major driver of lower-priced-goods sales. Therefore, it is not just high-end products that customers save up for throughout the year that see a rise in sales during Diwali, but also moderately priced items that make for good gifts.
● With Diwali bonuses coming in, self-gifting is also an emerging trend during this period, especially for products such as electronics and jewellery.
● For brands selling traditional clothes, they can expect to see a drastic surge in their sales as almost everyone across the country buys traditional clothes to wear on Diwali, regardless of availability of offers or discounts.
● There is an increased visibility for all products and the typically slow moving stock and old season stock tends to sell faster allowing sellers to clear out their stock.
● It is the optimal time for brands to introduce new products due to the impulse buying behaviour of customers during Diwali.
● There is much better ROI on marketing campaigns.
● Since there is a higher sales volume which translates into more products, the production cost is decreased.
However, it is also important for sellers to employ proper retention strategies after the Diwali season to keep the acquired consumers.
● Diwali has become synonymous with the best offers and discounts.
● Some brands even offer additional benefits such as free shipping, Buy 1 Get 1 and so on.
● Many luxury brands are also gifting products directly to their most valuable customers in an effort to develop connections with VIP clientele and Diwali is the ideal time of year to do so.
● After going through a difficult year with the pandemic, the Diwali season is the perfect time to unwind and reward yourself with new products, clothes, etc