Why Brands and Businesses Need To Engage Customer In Newer, Deeper Ways

Though 1/4th of consumers had increased spending, 2/3rd were not so positive
Why Brands and Businesses Need To Engage Customer In Newer, Deeper Ways

Despite Diwali 2021 is certain to accelerate the return to normalcy but it won’t be a solution-for-all, given the rising inflation and waning income and career security still playing on many consumers minds. In fact, during this period, though 1/4th of consumers had increased spending, 2/3rd were not so positive. 

Among the categories, Apparel has seen a surge while real estate remains mixed; automotive growth has been hampered by supply-side issues like semiconductor shortages while mobile phones, the category that reflects consumer sentiment the most, are still not on all-out demand mode due to limited stock availability and other issues, as per a survey by Market Xcel. The data suggests that the businesses need to try something different to tackle the challenges. 

Vishal Oberoi, CEO, Market Xcel, said, “The pandemic has led to multiple generational consumer shifts and behavioural changes some of which are permanent while the rest will be over a period crawl back to normal. We are definitely seeing some tentativeness among consumers as they remain wary of what is ahead, not just on the pandemic but macro-economic factors like rising inflation. What that means for brands and businesses is to engage and assure the customer in newer, deeper ways, and, fully convince them on the economic value of their purchase decisions.”

Gold is seeing some pick-up in jewellery over diamond despite its price weakness in the recent past; jewellers are betting on marriage season to make up the deficit. In the consumer durables category, many consumers are looking at repair over replace seeking to extend the appliances’ durability. There is little consumer appetite for impulse shopping besides heightened price sensitivity, the survey finds. 

The Diwali 2021 period has been unique in the sense it comes at a time when the entire world is working toward getting everything back to normal. As such, developments happening during the period will set the course for what lies ahead for the country’s economy. 

“The success ahead as much depends on how well and quickly brands and businesses tune themselves to the above. Finally, we chose Diwali to study the sentiment as we believe, not just the stock market, but even beyond its’ the single national festival that is celebrated nationally, spurring huge economic activity across sectors,” said Ashwani Arora, Executive Director, Market Xcel. 

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