Festival season spend in 2022 to top $32 billion, says survey
2 min read . Updated: 23 Sep 2022, 10:15 AM IST
Premium- Indian consumers will largely spend money on Diwali supplies, groceries and home renovation items, a survey by LocalCircles has found. One in three Indian households plan to spend an estimated ₹10,000 this festive season, with footfalls in stores and markets set to jump by 20%.
NEW DELHI: Spending in the festival season in 2022 could hit $32 billion as Indian households prepare for a restriction free Diwali, according to data released by LocalCircles, a citizen and community engagement platform.
While consumers spend will surpass levels seen in 2021, the number will be lower than 2019 when it stood at $37 billion.
India's festival season starts August and goes on through December with demand peaking around Diwali.
Indian consumers will largely spend money on Diwali supplies, groceries and home renovation items, a survey by LocalCircles has found. One in three Indian households plan to spend an estimated ₹10,000 this festive season, with footfalls in stores and markets set to jump by 20%.
LocalCircles received over 58,000 responses from consumers located in 362 districts of India for its survey. Over 60% respondents were men while 36% respondents were women. Meanwhile, 44% respondents were from tier 1, 33% from tier 2 and 23% respondents were from tier 3, 4 and rural districts.
Findings of the survey reveal that 35% of households plan to spend on Diwali supplies and 26% are planning to spend on festive groceries while 13% plan to buy home renovation products. In fact, 6% of households plan to buy white goods and appliances, while 6% intend to spend on smartphones and consumer electronics. Some 4% are likely to buy jewellery. Spending on services could also see a boost with home repair and travel projected to be top categories of spends.
Consumers are likely to open their wallets after two seasons of muted festive celebrations. However, high inflation has brought in some caution, especially in middle-income households.
As a result, this festive season consumers are likely to indulge in value purchases.
The survey revealed that while 65% households are set to spend this festive season, 35% are likely to refrain from spending.
"Attention must also be paid to the 35% respondents in this question who responded indicating that they do not plan to spend anything this festive season. It is likely that many of the respondents in this category are experiencing a squeeze with high inflation, loss of livelihood or employment and are just getting by month to month," according to the findings of the survey.
Of those spending, 49% are likely to shop via stores and markets, while 38% said they prefer to order online. The survey found that there will be a 20% increase in number of shoppers visiting markets as compared to last year.
Meanwhile, consumers are putting their need for value upfront, while concerns around the pandemic dissipate.
“When it comes to shopping criteria, with covid spread being low, covid safety is no longer a priority for most and they are likely to focus on either value for money or quality products as their top shopping criteria," LocalCircles said.
All in all, 2022 is likely to see strong festive season spending and should give an impetus to manufacturing, services as well as the travel and tourism industries.
