36.18% to increase festive spending compared to last year: The Bharat Lab report

Delhi: The Bharat Lab, a think-tank created by the coming together of ad agency Rediffusion, and the  Lucknow University has released its latest Mood of Bharat report, “The Diwali Pulse 2024,”  shedding light on the festive season’s likely shopping behaviour and consumer sentiment in the  Hindi heartland. 

The findings reveal a festive surge in optimism, as consumers across the country prepare for one  of the biggest shopping seasons of the year. 

Based on surveys with 3,480 respondents in the Hindi heartland (largely Uttar Pradesh) through  in-person, telephonic and internet surveys, the sample covered a mix cohort across gender,  profession and lifestyles. Men (53%) and women (47%), students (24%) and working professional  (42%), business owners (34%) and salaried class (65.5%) – all were given a stage to express their  mood about Festive 2024. 

The report spans key categories such as gifting, fashion, jewellery, home décor, electronics, and  automobiles, offering valuable insights into possible consumer trends for Diwali 2024.

Sandeep Goyal, Chairman of Rediffusion, said, “We started the Mood of Bharat study last  year before the advent of the festive season. This year the study is bigger, deeper and more  comprehensive – it covers lots more on the media stimuli too for the planned purchases.”  

Key Findings from the Report: 

∙ Optimism triumphs over Inflation: Despite rising costs, 36.18% of respondents plan to  increase their festive spending compared to last year, while 35.02% will maintain their previous spending levels. Inflation, however, is causing 29.52% to possibly scale back. 

∙ Fashion dominates all other categories: New clothes and accessories remain the most  popular Diwali purchase category, with 86.35% of respondents planning to refresh their wardrobes, followed by personal gifts (72.84%) and home décor (70.83%). Electronics (60.92%) and jewellery (48.13%) also feature prominently on the shopping list. 

∙ Eco-conscious shopping on an all-time high: As a testament to the fact that Indian consumers are getting environmentally conscious, we see that sustainability is a growing factor in purchase decisions, with 83.36% of respondents considering environmental concerns, particularly in categories like fashion and electronics. 

∙ India has always loved a tryst with bargains & discounts: For 63.82% of shoppers, discounts and offers are the primary motivation, while 48.77% are driven by tradition and cultural significance, reinforcing the continued importance of Diwali as a time for family and heritage. 

∙ Shift to Digital: Online shopping continues to rise. 58% of respondents prefer a hybrid approach, saying they would buy both online and offline. 20.98% however would go purely digital. 

∙ Millennials Lead the Online Charge: Over 85% of Millennial and Gen Z shoppers prefer  online purchases, solidifying the dominance of e-commerce. 

∙ Where Screens Meet Sales: Social Media Sparks, TV + Press Seals the Deal : Social media influences 53.69% of consumers, particularly in fashion and electronics, driven by influencer marketing and engaging content. Meanwhile, 41.24% buyers still rely on TV  ads and newspapers, especially for big-ticket items like cars and 2-W vehicles and  

jewellery. Together, they form a powerful combination for reaching both digital-savvy  buyers and traditional shoppers. 

∙ Festive Fortunes: Half of Bharat Seeks Gold and Real Estate to Secure Financial  

Growth: Nearly half of all respondents (49.14%) plan to make new investments during  the festive season, with a strong focus on traditional assets like gold (55.26%) and real estate (40.74%). This demonstrates a widespread intent to capitalize on the festive  period for financial security and growth. 

∙ Holiday Escapes: Nearly Half of Bharat Embarks on Festive Travels: Nearly half of the respondents (49.71%) plan to travel during the festive season, with 54.12% opting for family trips. Destinations range from festival-centric locations to off-beat getaways, reflecting a desire for both tradition and relaxation. 

∙ Rising Costs, Rising Spirits: Despite Inflation  

While inflation is top of mind for many, 70% of respondents indicated that it doesn’t dampen their choices. A significant portion (30.42%) plans to increase spending by 25-50% to accommodate rising costs, showing resilience in consumer behavior. 

∙ Home décor: 31.84% consumers would like to buy furniture while 23.88% would like to  get their house painted this Diwali.  

∙ Electronics & Durables: Over 30% respondents are looking to buy a new mobile. 21.83%  are in the market for durables and home appliances. Large screen TVs are also being sought out by 4.8% of the population surveyed.  

Alok K. Rai, Vice Chancellor Lucknow University commented, “Bharat seems happy and  wanting to splurge this Diwali. The consumer is buoyed possibly by the surging stock markets  and the stability in the government and economy. These are good times.” 

Carol Goyal of The Bharat Lab, noted, “Diwali 2024 is poised to be a vibrant season. The enduring tradition of celebration, coupled with modern shopping trends, paints a picture of  optimism and joy.”