Diwali is typically one of the peak season for sales in India. From clothing to cars, mobile phones to jewellery, consumers splurge during this festive season while brands scramble to grab their attention with heavy discount offers.

But with the pandemic disrupting the livelihood of individuals in the form of pay cuts and job losses, has consumer sentiment dampened this year? Will the cautious consumer go out and shop this Diwali? Are high-ticket items like cars and property going to see a fillip?

According to Insights and brand analytics company TRA Research, 65 per cent consumers reflect a ‘Positive Buying Sentiment’ for Diwali 2020. The finding was published in TRA’s Diwali 2020 Buying Propensity Report , a whitepaper based on consumer research conducted across 16 cities with 503 consumer-influencer respondents between June 9 and July 15, 2020.

TRA’s Buying Propensity Index (BPI) is a measure of the ‘keenness to buy’ of India. Buying Propensity is a scientific tool that gets to the root of buying, an act that manifests on the basis of two factors - an individual’s need-based buying and desire-based buying.

The research also said while 28 per cent felt the buying sentiment will remain the same as compared to June 2020. Only 7 per cent consumers felt that the buying sentiment will worsen in Diwali than in the current period.

Apparel segment to do well

The study plotted buying propensity versus planned purchase matrix in a graph with four categories: very high, high, medium and low priorities. Apparel category was the clear winner and outlier in the ‘Very High Priority’ spends with approximately 3.11 times higher priority than the average of all other categories.

Mobile phones undoubtedly have become the most important accessory. The third priority is to consumer electronics and consumers want to buy or upgrade their washing machines, ACs and refrigerators, the essentials which made life livable during this extended lock down. Two-wheelers are also found to be a very high priority which will be a preferred transportation in the future for its safety, increased mobility and costs.

‘High Priority’

Home furniture, jewellery and television were under ‘High Priority’ buying list of consumers. Items under this category have a high possibility of getting purchased even though the propensity is comparatively lesser.

“The Covid-induced lockdown has given rise to the world’s largest Work-From-Home experiment, and consumers seem keen to indulge in Home Furniture as a part of this new lifestyle change. TVs, which has become the household’s favourite entertainment pod, evident through the surge in TV viewership figures, is also on the High Priority buying lists of consumers,” the report added.

Car, laptops, kitchen appliances and personal accessories fell under the medium priority, home renovation, health insurance and travel was in the ‘Low priority’ category.

A total of 95 per cent consumers rate ‘Product Quality’ as the most important influence when making purchases for Diwali. This is followed by product usefulness (89 per cent), Product Price (88 price), Buying Convenience (87 per cent) and Brand Name (86 per cent).

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