As India prepares for the upcoming festive season, a time when urban households traditionally increase spending on a wide range of goods, a recent survey by LocalCircles sheds light on the anticipated shopping trends for 2024.
Despite a dip in consumer confidence reported by the Reserve Bank of India (RBI) in its July survey, Indian households remain committed to festive spending, with an estimated total expenditure of Rs 1.85 lakh crore (approximately $22 billion) during the season.
The LocalCircles survey, which garnered over 49,000 responses from prospective buyers across 342 districts, reveals that half of urban households will spend more than INR 10,000 on festival-related purchases, with 4 per cent expected to spend upwards of INR 100,000. Categories ranging from traditional pooja supplies to consumer electronics are expected to drive this spending urge.
Value For Money Takes Center Stage
Amid the economic pressures, the survey highlights a shift in consumer priorities, with 46 per cent of respondents ranking ‘value for money’ as their top concern during festive shopping, followed by product quality (43 per cent). Convenience, which was a key factor during the pandemic years, has taken a back seat, reflecting a return to more traditional shopping behaviours. This shift signifies that Indian households are balancing budget-consciousness with a desire for quality, even as the cost of living rises.
Online Shopping Continues To Grow, But Brick-and-mortar Dominates
Despite the growing prevalence of eCommerce, particularly in urban centres, the survey found that 70 per cent of urban households plan to do their shopping in physical markets or stores. While only 13 per cent of respondents indicated a preference for eCommerce platforms as their primary shopping channel, the influence of online sales is undeniable. With major platforms offering deep discounts and fast delivery services, many households are expected to make last-minute purchases online, especially in categories like consumer electronics and fashion.
India's unique shopping habits during the festive season, which include the purchase of everything from small pooja items to high-ticket consumer electronics, reflect the diverse needs of urban households. The survey found that 70 per cent of respondents plan to spend on traditional festive supplies like diyas, lights, and flowers, while 64 per cent will be stocking up on gourmet foods and festive groceries. Home décor is also a popular category, with 40 per cent of respondents planning to refresh their living spaces, and 38 per cent expecting to spend on beauty and fashion.
Key Spending Categories And Preferences
While pooja supplies and groceries remain top choices, other big-ticket items such as smartphones, white goods, and appliances are also expected to feature prominently in urban Indian shopping carts. The survey indicates that 22 per cent of respondents plan to buy consumer electronics, and 18 per cent will purchase white goods such as refrigerators and air conditioners. Meanwhile, a smaller percentage (4 per cent) will be investing in high-value purchases like automobiles and jewellery, underscoring a cautious approach in these luxury segments.
Festive Spending Outlook: Stable But Not Expanding
Despite robust spending projections, the survey also points to a broader context of economic caution. According to the July 2024 Consumer Confidence Survey, household expectations around savings, income, and employment have moderated, contributing to a decline in the Current Situation Index to 93.9 from 97.1 in May. This cautious outlook is reflected in the fact that nearly 26 per cent of urban households surveyed by LocalCircles do not plan to make any additional purchases during the festive season, indicating that financial pressures are weighing on a significant portion of the population.
However, for those who are spending, the survey suggests that the focus will be on getting the most value for money in categories that enhance both functionality and enjoyment during the festive period.
With urban households representing a substantial market, India's overall festive spending is estimated to remain stable at around $32 billion, including rural expenditures, consistent with previous years.
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