Sales at Diwali bazaars look relatively better this year with a perceptible increase in consumer demand for Diwali-related items. Falling inflation, pay commission payouts and a good monsoon have illumined festival sales for both online and offline players. Rough estimates of the total quantum of festival-related sales vary from Rs 6,700 crore to over Rs 12,000 crore as there is no easy way to quantify such figure, feel many offline and online players. “But sales this year are surely expected to be higher by over 12% compared to last year,” says Praveen Khandelwal, secretary general, Confederation of All India Traders.
The positive feeling about this year’s Diwali is also visible from growth in online traffic for buying festival gifts. “Our sales have improved by 55% this season,” says Ashish Chandani, COO and co-founder, Giftease.com, an online gifting platform. Diwali, a series of festivals from Dusshera till Bhai Dooj, is considered to be the biggest festival in India, with everyone over-shooting their budget to celebrate it more auspiciously. The average ticket size has also improved by 35%, meaning people are spending more on gifts. In addition, “more and more corporate are placing bulk orders with us to gift their employees a better item this year,” adds Chandani. Many companies had been skipping this ritual altogether for a couple of years in a reflection of the economic distress that is still taking time to fade away. Corporates’ budget has also improved from Rs 400 (per gift item) to Rs 700 this year.
Gold and silver remain all-time favourites during Diwali and corners about 10% of the total sales conducted during this festival. Other items that are selling like hot cake include confectionary like dry fruits, sweets and chocolates. Moreover, there is a clear shift to small electronic gadgets (emerging a big category for gifting) that younger generations are happier to exchange. Electrical decorative lightings, readymade garments and FMCG products, too, are witnessing higher sales. “Interestingly, the anti-China campaign has given a new life to traditional potters who have developed a large number of artistic and innovative earthen products hoping to get good share in market,” says Khandelwal. Though the anti-China campaign (most viral on social media) has squeezed the sales of Chinese made products by 40%, many customers feel that Indian products are far too costlier and less fancier than the Chinese ones. “To boycott Chinese goods more effectively,” says a buyer at Sadar Bazaar, “we need to match their costing.”