Festive Shopping Trends: What's Hot This Year?

Eyeing a major shift from previous years, Indian consumers are set to unleash remarkable festive spending in 2024, with millennials leading the charge across both traditional and digital channels. Shoppers are expected to spend an average of Rs 25,000 this season, a 47 per cent increase compared to 2023, according to the Disney+ Hotstar Festive Sentiment Survey. Noting the surge, businesses and brands are positioning themselves to capture this wave of consumer enthusiasm.

 Consumer Confidence
The survey paints a picture of robust consumer confidence with 84 per cent of respondents reporting their spending capacity has either improved or remained stable compared to the previous year. 73 per cent of consumers are planning to increase their festive expenditure, with women leading the charge in driving higher budgets while 16 per cent intend to maintain last year's spending levels.

However, the YouGov Diwali Spending Index reveals that the festive spending landscape shows geographical variations. Consumer sentiment in tier one cities has reached spending propensity to 35 per cent, jumping from last year's 30 per cent. Northern markets are emerging as the powerhouse of this spending surge, outpacing other regions in terms of consumer confidence and purchase intentions.

Digital-first
As digital ad spends are skyrocketing, brands across India are pouring more of their marketing budgets into online advertising to capture the mindshare. The numbers speak for themselves - according to the Magna Global Ad Forecast report, digital ad spending in India is set to grow by 15.9 per cent in 2024, reaching Rs 580 billion (US$6.9 billion).

As consumers spend more time online, the allure of digital advertising lies in its ability to precisely target consumers and deliver personalised experiences. Mihir Jain, Sales and Marketing Director at Insight Cosmetics notes, “The ability to reach a larger, more targeted audience based on their interests and behaviours is a critical factor. Additionally, the cost efficiency of digital ads, particularly the lower cost per conversion (CPC), makes them highly appealing.”

Online platforms have emerged as the preferred shopping destination, capturing 59 per cent of consumer preferences, while traditional retail accounts for 42 per cent. Online advertisements have become the primary source of product knowledge, influencing 58 per cent of shoppers, followed by offline advertising at 46 per cent and personal recommendations for 25 per cent. Teleshopping still holds a niche audience at 11 per cent, but the shift to online platforms is evident.

Nisha Khatri, CMO of Libas highlights the power of digital engagement stating, “We do a of live commerce and see a lot of quick conversions. In an hour of applicable codes, we see really great numbers reaching up to 3 to 5 lakhs worth of orders.” Reflecting their digital-first approach, she reveals, “60 per cent of our marketing budget goes into our aspects for the digital ones.”  

Premium Product Demand Surges
The spending surge spans multiple categories. Apparel, mobile phones, food and beverages and the beauty and wellness sector dominate the shopping lists of consumers, with each category holding a 25-28 per cent share of overall purchases. The jewellery sector is also catching a renewed interest from younger demographics.

Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers notes that gold remains India’s most-preferred investment option. “We are witnessing renewed interest from millennial and Gen-Z consumers, who are looking at making timely investments in the yellow metal. This has led to an acceleration in demand momentum for traditional temple jewellery as well as polki and uncut jewellery pieces”, he asserts.

“This consumer demographic is further playing a critical role in the growing popularity of platinum jewellery pieces as well as dual-tone jewellery designs, reflecting the dynamic nature of the market”, he adds.

On the beauty front, this sector is adapting to changing consumer preferences with strategic approaches. Medhavi Nain, Head of Marketing at House of Beauty discusses how data analysis and emerging trends guide the company’s festive marketing strategies. “For our beauty brands, we allocate our budget across influencer partnerships, ecommerce promotions, in-store activations and targeted digital marketing, ensuring that every campaign is informed by the latest consumer insights”, she shares.

To ensure that the brand stays impactful and relevant during the festive season, she believes that the resource allocation allows them to focus on areas with the highest potential for engagement and conversion. “We’re not only looking at what products performed well in previous years but also staying attuned to current market conditions and competitor activities”, Nain explains.  

Jain highlights the effectiveness of influencer marketing for the beauty industry as consumers often seek recommendations from trusted voices. “We are using a multi-channel approach but social media and influencer marketing are our focused channels for digital ad spending this festive season. These platforms including Instagram, Facebook and YouTube are most relevant for our target group in the beauty industry”, he emphasises.

Social media and influencer marketing have emerged as the prime channels for digital ad spending, with social platforms accounting for 34 per cent of the digital pie and video ads contributing 14 per cent, as per the Magna Global Ad Forecast report.

The 5G Upgradation
Mobile phones are a particularly hot item this festive season, boosted by the desire for 5G upgrades. As consumers upgrade for better connectivity, enhanced cameras and premium features, brands are capitalising on this trend.

Karan Dua, Head of Brand Marketing at Oppo India highlights the company’s positioning to meet the growing demand. “The sentiment of trust and resilience aligns with Oppo India’s commitment to delivering premium user experiences through durable and reliable smartphones”, he says.

Oppo’s Diwali campaign, #VishwasKaDeep emphasises the brand’s focus on dependability across India’s diverse geographies, offering features like the IP69 Waterproof Rating in its popular F27 Pro+ series which is also quite popular in non-metro cities. “The campaign speaks about how our products are dependable and reliable in most of the extreme geographies ranging from mountains to ocean and deserts”, he notes.

Gifting As Key Trend
A new pattern emerging this season is the prominence of self-gifting, with 87 per cent of consumers shopping for themselves and 43 per cent buying for others for festive indulgence.

“Self-gifting is a very big trend this season where the ads which are served to our audience online convert quite fast because, of course women being our more impulsive and stronger customer base in terms of conversion. 70 per cent of our customer base is millennials and Gen Z. We have seen a 19 per cent jump in sales of festive pieces compared to last year”, observes Khatri, with consumers trading up for more expensive goods.

Libas has positioned itself to meet this demand by releasing strategic campaigns featuring actor Kiara Advani, as well as hosting flash sales that create urgency through FOMO (Fear of Missing Out).

Tech & Emotional Storytelling
New-age technologies like AI, AR and VR are also making inroads into festive campaigns, enhancing audience targeting and creating immersive experiences. The festive season is seeing a creative use of technology to enhance consumer engagement. “As part of the Diwali campaign and to deepen the experience, we have created an interactive microsite that allows smartphone users to explore Diwali from various regions and create their AI-driven Diwali postcards”, shares Dua.

This aligns with broader market trends as revealed by the ShareChat & Moj Report which indicates 86 per cent of Indians prefer content in their regional language.

But while technology is a key driver, emotional storytelling remains at the heart of festive marketing. As Khatri points out, Libas focuses on the product as the hero, weaving a narrative around each collection that resonates with consumers. “We ask ourselves, who is the Libas woman?” Khatri explains. The result is a 360-degree campaign that integrates social media, ads and offline marketing to create an immersive brand experience.

As the festive season unfolds, the convergence of increased consumer confidence, digital adoption and evolving shopping preferences suggests a transformative period for Indian businesses. With brands investing heavily in omnichannel presence and creative marketing strategies, the 2024 festive season could be on its path to setting new benchmarks for consumer spending.

Reema Bhaduri

BW Reporters The author is the Editorial Lead at BW Businessworld. Majorly writes on marketing, advertising, experiential marketing and retail. She closely looks upon the vertical of BW Marketing World and BW Retail World.