Nearly 70% of Indians are ready to spend more this Diwali, representing a marked 35% increase from last year, according to the third Festive Pulse Survey conducted by The Trade Desk.
The research indicates growing optimism among Indian consumers is slated to drive larger festive sales this year, with 84% expressing an interest in purchasing luxury goods and apparel, and 80% for Gold.
Amongst those who plan to spend more, 68% said they are more likely to increase spending on new clothes, 65% on Gold and jewellery, 64% on Diwali food items and gifts for family, and 64% on friends and colleagues.
According to the report, the planned increase in consumer spends is led primarily by 53% of consumers bullish view that their financial situation has improved. 49% of consumers indicated an eagerness to celebrate more this year as another reason.
The findings reflect an always-on branding strategy is the key to engaging consumers effectively. When shopping for Diwali, 58% of Indians consider themselves to be planned shoppers, while 45 % regard brand trust as an important factor in their Diwali shopping decisions, says the report.
The research also unveils significantly higher brand loyalty, compared to Diwali shopping last year. Within the top three product categories where consumers demonstrate the strongest loyalty, a notable 74% of consumers will stick to the same brand when purchasing products in health and personal care, which is an increase of 23% compared to last year.
While 69% of Indian consumers will do so for consumer electronics, there is an increase of 30%, and 65% for makeup and fragrances respectively, an increase of 27% from last year.
50% of the respondents said they are least likely to hold a strong brand affinity for toys, games, collectibles, and home and living, while 47% of the respondents indicated the same for travel.