Gifting surge expected during India’s festive season

The upcoming festive season in India is expected to see significantly increased spending on discretionary items, consumer electronics and gifts as people return to stores following two years of COVID-related restrictions.

Context 

Brands and retailers are anticipating growth of up to 25% on the same period in pre-COVID 2019: consumer sentiment is positive, in both rural and urban areas, and there’s a lot of pent-up demand.

Additionally, “Large family gatherings are expected during the festivals after a gap, and this will be the first wedding season without COVID protocols in two years”, notes the director of a large mall operator in Delhi-NCR. “We expect to see these occasions boost gifting and discretionary consumer spending,” he tells the Economic Times.

Takeaways 

• The festive season starts with Raksha Bandhan next week, followed by Janmashtami and Ganesh Chaturthi, and goes on to Dussehra, Durga Puja, Diwali and Christmas. The wedding season starts in November.
• “We are already at 30% higher growth rates compared to last year,” says Manish Saini, chief operating officer at gifting company Ferns N Petals. “We expect growth to settle at 60% over last year as orders per day are in the range of 18,000-20,000 for Raksha Bandhan.”
• Consumers could pick up smartphone bargains as brands look to clear current high levels of unsold inventory. 

Sourced from Economic Times