Diwali is over, but is the festive shopping over yet? Trends suggest that festive sales really boomed this year. Estimates from the Confederation of All India Traders show that on Diwali retail markets across India did a record trade of Rs 3.75 lakh crore. Shopping during festivals is a norm, but is India Inc. over-reliant on this season to boost sales? In this episode of the State of the Economy podcast, Chitra Narayanan talks to Shiv Shivakumar and Sandeep Goyal, Chairman and Managing Director, Rediffusion, to find out.
In the podcast, Shiv Shivakumar and Sandeep Goyal noted that sales jumped during the festive period. Goyal attributed the recent surge in sales to pent-up demand from deferred purchases during the Covid-19 pandemic, even as he noted that most firms sold more products and services during this period which spanned from August to November. He also noted that there was a shift in consumer behavior, such as increased spending on consumer durables and home renovation, due to postponed purchases during the pandemic.
Shivakumar and Goyal also discussed how the convergence of the cricket World Cup with Diwali helped boost the sale of consumer electronics. Shivakumar noted that apparel sales did not match the expectations, and said that this was possibly due to perpetual discounting done throughout the year.
The host and guests also discussed the repetitive nature of advertising during this period and pointed out the lack of creativity in storytelling. They also emphasized that the expanding influence of social media and digital platforms in dictating marketing strategies. They also discussed the role of quick commerce firms and social media in influencing buying patterns.
Listen to the podcast to understand the relationship between regional festivals, and increased consumer spending.
(Host: Chitra Narayanan, Producers: Anjana PV, V Nivedita)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.