62% Diwali shoppers to spend more this year than 2023: study

Delhi: At a recent webinar organised by MMA Global India, Amazon Ads held a session on advertising strategies for the upcoming Diwali festivities. Vijay Iyer, Director, Amazon Ads India and BOD Member, MMA Global India moderated the session and industry experts from HP India, Orient Electric and HiveMinds, shared their recommendations.

Moneka Khurana, Country Head and BOD Member, MMA Global India commenting on the webinar, said, “As we approach Diwali 2024, brands have an unprecedented opportunity to connect with consumers who are not only ready to spend more but are also actively exploring new products and experiences. At MMA Global India, our 'Brand as Performance' research highlights the importance of balancing immediate sales with long-term brand value. This season is a crucial test for brands to integrate performance-driven tactics with strategies that foster long-term brand building. Therefore, developing hard-working advertising strategies that not only drive immediate results but also build strong, enduring brands.”

To help set the scene for the conversation and to better understand how consumers are approaching the Diwali season this year, Iyer shared a series of new insights that Amazon Ads commissioned with YouGov. They included:

•    62% of Diwali shoppers plan to spend more this year as compared to 2023.

•    Nearly two thirds (64%) are excited to go shopping for gifts for their family and friends, while 58% are keen to shop for themselves or their homes.

•    Fashion and fashion accessories (62%), smartphones and tablets (58%), and personal care and grooming products (47%) are set to be the most popular categories during the festive season.

•    55% of shoppers are keen to explore new brands and products for purchase for both gifts and themselves.

•    Consumers are thinking about Diwali months in advance, with 47% starting to think about Diwali before July and 78% before September. 

•    67% use retail media channels like Amazon for research about brands and products and 58% use it for making purchases.

With Diwali recognised as a time when customers often explore new products, brands and categories, the industry experts shared some recommendations for brands to keep in mind ahead of the festive season: 

Shivani Chopra, Marketing Head - Consumer PC and Peripherals, India, HP India, said, “Consumers have already started their research and evaluation about products that they want to purchase around the festive season. If you haven’t started planning yet, it’s beneficial that you start soon. Identify your key products and fully commit to them, while keeping the consumer journey at the forefront.” 

Anika Agarwal, Chief Marketing and Customer Experience Officer, Orient Electric, said, “Since people are looking for new products, so about three months prior, July-August is a good build-up phase, to place new launches in shelves for consumers. Choose strategies according to market size and brand size and move forward accordingly. Choose where you have a right to win and explore that funnel.”

Jyothirmayee JT, Founder, CEO, HiveMind, “Consumers are open to exploring new brands and categories. Discovery is massive in the pre-consideration phase. If you have niche products that you thought were not suitable beyond a certain cohort of audience, then this is the time to educate and to start going into adjacent categories and drive new-to-brand and new-to-category consumers.”