Festive season spurs consumer spending in smaller towns
Subscribe to enjoy similar stories. As India's annual festive season unfolds, consumers in smaller towns and cities are cautiously opening their wallets. A good chunk of Indians plans to spend more this year, despite high prices tempering some of the enthusiasm.
The Bharat Lab Festive Report 2024 shows that 36% of small-town shoppers plan to spend more than last year, while 35% expect to maintain their budgets. But not for nearly 30%, for whom higher prices are a concern. Despite rising costs, spending will be driven by key categories such as fashion, electronics, and home décor, said Bharat Lab, a thinktank founded by advertising agency Rediffusion and Lucknow University.
New clothes and accessories top the list, with 86% of respondents planning wardrobe updates, followed by personal gifts (72%) and home décor (71%). Electronics are also popular, with 60% of consumers interested in purchasing gadgets, mobile phones, and home appliances. Sandeep Goyal, chairman of Rediffusion, said, "We started the Mood of Bharat study last year before the advent of the festive season.
This year, the study is bigger, deeper, and more comprehensive—it covers much more on the media stimuli too for the planned purchases." Goyal's insights point to a consumer base that remains optimistic despite economic pressures, fuelled by both tradition and evolving shopping trends. Parle Products is seeing demand come back after a plunge during the pandemic, said Krishnarao Buddha, senior category head. "We expect an increase of over 25% during the festive season.
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