Diwali splurge 2024: Indians to spend Rs 1.85 trn, 40% on home decor
Source: Business Standard
Indians are ready to dive into festive shopping, with many households planning to spend over Rs 10,000 during the festive season of 2024. A survey conducted by community platform Local Circles reveals that urban India is set to spend Rs 1.85 trillion this year. Despite the growing influence of e-commerce, the survey points out that 70% of urban households will stick to local and retail stores, while only 13% plan to use online platforms for their purchases.
How much will urban India spend?
The survey, which collected over 49,000 responses from households across 342 urban districts, dug into spending patterns for the 2024 festive season. It found that 40% of households plan to invest in home decor, while 38% will focus on beauty and fashion. Gadgets and whitegoods are also on the list, with 22% and 18% respectively planning to make purchases in these categories. Additionally, pooja supplies and festival groceries are expected to be top spending areas.
Fast delivery platforms have made it easier for metro and tier-2 households to make last-minute purchases online. However, even with the convenience of e-commerce, the majority of urban households still prefer traditional stores. Retailers, including those dealing in automobiles, whitegoods, and consumer electronics, are banking on the festive spirit to boost sales.
Will the festive spirit offset consumer confidence dips?
Retailers are hopeful despite a recent Reserve Bank of India (RBI) survey showing a decline in consumer confidence for the second consecutive time in July 2024. The RBI’s bi-monthly Consumer Confidence Survey (CCS) revealed that households’ optimism about future economic conditions has waned. The Current Situation Index (CSI) dropped to 93.9 in July from 97.1 two months earlier. Nonetheless, the festive season is expected to drive spending, especially on essential festive items like pooja supplies and groceries, according to the survey.
What matters most to festive shoppers?
Household budgets play a big role in determining how much families spend during festivals. According to Local Circles, value for money remains the top priority for 46% of households, while 43% prioritise product quality. Only 8% of respondents said selection or range matters, and a mere 3% highlighted convenience as a deciding factor.
The survey asked urban households how much they plan to spend beyond their regular monthly expenses. Among 12,008 responses:
4% expect to spend Rs 1 lakh or more
4% plan to spend between Rs 50,000 and Rs 1 lakh
18% will spend between Rs 20,000 and Rs 50,000
26% intend to spend between Rs 10,000 and Rs 20,000
14% will spend between Rs 5,000 and Rs 10,000
8% will spend up to Rs 2,000
26% don’t plan to spend anything this festive season.
Where will urban India shop?
With online shopping becoming mainstream after the pandemic, the survey also explored how households plan to shop this year. Out of 11,710 responses:
70% said they will visit malls, retail stores, or local markets
13% plan to use e-commerce or online platforms
5% will order through online catalogues for delivery via phone or WhatsApp
6% plan to use other channels
6% were undecided.
While only 13% plan to do most of their shopping online, 40-50% of households are expected to buy electronics or fashion items online as platforms offer promotional discounts. Local Circles estimates that India has nearly 400 million unique registered online shoppers.
What are people buying?
Festive shopping covers a broad range of items, from decorations to luxury goods. The survey found that nearly 70% of respondents plan to buy pooja supplies and festival groceries. Other categories include:
64% will buy festival groceries like dry fruits and sweets
40% will spend on home décor
38% will shop for beauty and fashion items
22% will purchase consumer electronics
18% will invest in whitegoods like fridges and air purifiers
4% will buy automobiles or jewellery.
First Published: Sep 26 2024 | 2:26 PM IST
