Theme: Marketing | Is India Inc over-reliant on the festive season to boost sales?

Diwali is over, but is festive shopping is over? 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 emphasize the expanding influence of social media and digital platforms in dictating marketing strategies. They also discuss 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.