70% of consumers ready to spend more this Diwali: Survey

Approximately 70% of Indians are ready to spend more this Diwali, representing a marked 35% increase from last year, according to the third Festive Pulse Survey conducted by The Trade Desk.

As per the survey, the planned increase in consumer spending is led primarily by consumers’ bullish view that their financial situation has improved (53%), and consumers’ eagerness to celebrate a lot more this year (49%).

The new research indicated growing optimism among Indian consumers is slated to drive larger festive sales this year, giving brands an opportunity to build advertising campaigns tailored to consumer interests and preferences as the biggest shopping season of the year approaches.

Skyrocketing optimism spurs consumer spend

The surge in optimism is driving increased consumer spend, with a significant majority expressing an interest in purchasing luxury goods and apparel (84%) and gold (80%). Amongst those who plan to spend more, 68% said they are more likely to increase spend on new clothes, 65% on gold and jewellery, 64% on Diwali food items and gifts for family, and 64% on friends and colleagues.

“This year's Diwali is shaping up to be the most significant shopping season ever. People are gearing to celebrate more, in turn, they plan to spend more,” said Tejinder Gill, General Manager, India, The Trade Desk. “To make the most of this opportunity, marketers should focus on building trust to engage customers with relevant advertising campaigns that reach them at the right place at the right time. The Trade Desk is empowering marketers to make smarter media decisions for the festive season and for the long term, whilst helping them track campaign performance to drive business growth effectively.”

Brands who engage early and consistently will stay top-of-mind

The findings reflect an always-on branding strategy is the key in engaging consumers effectively. When shopping for Diwali, more than half (58%) of Indians consider themselves to be planned shoppers, while almost half (45%) regard brand trust as an important factor in their Diwali shopping decisions.

The research also unveils significantly higher brand loyalty, compared to Diwali shopping last year. Within the top three product categories where consumers demonstrate the strongest loyalty, a notable 74% of consumers will stick to the same brand when purchasing products in health and personal care, which is an increase of 23% compared to last year. While 69% of Indian consumers will do so for consumer electronics, an increase of 30%, and 65% for makeup and fragrances, an increase of 27% from last year.

Indian consumers are least likely to hold a strong brand affinity for toys, games, and collectibles (50%), home and living (50%) and travel (47%). Marketers who employ an always-on strategy can help enhance brand affinity by maintaining consistent connections with their audience throughout their entire purchasing journey.

OTT platforms are effective advertising channels

The open internet provides an opportune place for brands to advertise, and over-the-top (OTT) streaming platforms are garnering notable traction. The majority of respondents (61%) express a willingness to research a product online if they like the ads shown on this channel. Furthermore, people aged 25 to 40 years exhibit a larger appetite for ads on OTT platforms, as half of them (51%) reportedly pay attention to ads on the channel. Concurrently, 43% said they direct their attention towards ads on news, websites, and blogs.

Survey methodology

The survey was conducted online by research firm Milieu amongst a nationally representative sample of 1,000 India adults, fielded in June 2023. All data was weighted by age and gender to reflect the latest Indian population estimates.

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