It’s that time of the year again which most Indian marketers wait with bated breath, there is festivity all around and thanks to better market condition, Indian consumers are looking forward to splurge this festive season both in offline as well as online shopping. According to a survey released by Paypal – an online payment company, 45 % Indians are expected to spend more during this festive season than they did last year. (via Business Wire). The result also revealed some other interesting statistics:
- 70% of Indians are keen to keep the holiday spirit alive without fail.
- The average Diwali spend amongst Indians this year is $213 with household items, health and beauty, entertainment and vouchers or gift cards topping the Diwali gift list.
- Of the four countries surveyed across south and Southeast Asia, Indians also appear to be the savviest at online shopping, with three quarters intending to shop online during the upcoming festive period.
- Time (75 %), crowds (65 %) and access to a wider range of products (60 %) are the main reasons cited for going online & avoiding shops
- Despite favoring their home grown talent, with 69 % of online shoppers in India perceiving local merchants to be at least on par if not better as overseas merchants, they still view lower prices, free shipping and greater choice as areas where online merchants are much stronger.
Seems to be good news for marketers & better news for e-marketers! (Look – Facebook has started using Diwali to promote it’s tagging feature)
Traditionally speaking, festivals in India have always been boom time for marketers as it’s this period when purchase and consumption are at real peak. It’s the time when even consumers who would have deferred purchases or those who prefer to stretch their money through discounts and sales get all set to splurge again.
For a consumption driven economy like India, festival-spends are actually one of the key indicators of market condition and state of economy. Considering last year’s lull festive sales due to economic downturn and global recession, the figures mentioned in Paypal’s survey definitely seem to be promising enough. But whether the economy has recovered this year and the market condition has improved can be best tested if these optimistic estimated spends actually come true. And all these glitters are actually gold or not can only be decided once the third quarter results of companies are announced.
What’s your take?
Aside: Wish all readers a ‘bagful’ (after shopping 🙂 ) & prosperous diwali!
Recommended Read: Online Diwali sales – electronic items accounted for 45% of the sales