India is entering into amid economic slowdown. This is the time when auto sector is going through its worst time. And, in the month of August leading biscuits, bakery and dairy product manufacturer Britannia had reported that people are thinking twice before buying 5 rupee biscuit pack. Among these weak sentiments, everybody is hopeful that upcoming festive season will bring cheer as consumers’ spending will go up.
E-shopping spends had dropped by a fifth in the first half of 2019, research firm Kantar's data shows. Only 3 in 10 respondents to the LocalCircles survey expect their finances to improve in the next six months but 35% households are likely to spend more than ₹10,000 during the festive season.
While the results clearly suggest a cutback in discretionary spending in Aug-Sep, the survey indicates that the consumer is likely to be back in the market come October.
White good sales
Diwali is the favorable time to buy TV, Fridge and gadgets including laptop, Smartphone amongst others. Survey shows that this time 27% of those who are going to be buying a gadget or a whitegood will opt for online marketplace including Flipkart, Amazon amongst others. However, 62% says that they will opt for offline store to make the purchase leaving positive note for brick and mortar players.
Category uptick is quite usual during Diwali. As per the survey, this time people are willing to expand highlight share on house renovation followed by white goods and other necessary items
Festive period is also the time to do aspirational shopping due to offers/ deep discounts offered by retail and eretail companies. As per the survey, 41% people have acknowledged that their spending on shopping, meals, movies and other services will be same as compared to last year. LocalCircles survey shows that just 11% of 22,000 respondents upped their spends on shopping, movies and meals in August while 46% either cut down or did not spend at all on discretionary purchases.