New data shows approximately 70 percent of Indians are ready to spend more this Diwali, representing a marked 35 percent increase from last year, according to the third Festive Pulse Survey conducted by global advertising technology leader The Trade Desk. The planned increase in consumer spend is led primarily by consumers’ bullish view that their financial situation has improved (53 percent), and consumers’ eagerness to celebrate a lot more this year (49 percent).
The new research indicates 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 percent) and gold (80 percent). Amongst those who plan to spend more, 68 percent said they are more likely to increase spend on new clothes, 65 percent on gold and jewellery, 64 percent on Diwali food items and gifts for family, and 64 percent 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 percent) of Indians consider themselves to be planned shoppers, while almost half (45 percent) 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 percent of consumers will stick to the same brand when purchasing products in health and personal care, which is an increase of 23 percent compared to last year. While 69 percent of Indian consumers will do so for consumer electronics, an increase of 30 percent, and 65 percent for makeup and fragrances, an increase of 27 percent from last year.
Indian consumers are least likely to hold strong brand affinity for toys, games, and collectibles (50 percent), home and living (50 percent) and travel (47 percent). 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 percent) 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 percent) reportedly pay attention to ads on the channel. Concurrently, 43 percent said they direct their attention towards ads on news, websites, and blogs.