Despite rising costs, 36.18% of consumers in the heartland of India plan to increase their festive spending compared to last year, according to a report by The Bharat Lab, a think-tank created by the coming together of ad agency Rediffusion and the Lucknow University. 

While 35.02% shoppers will maintain their previous spending levels, inflation is causing 29.52% to scale back possibly, finds the report titled ‘The Diwali Pulse 2024’ that aims to shed light on the festive season’s likely shopping behaviour and consumer sentiment in the Hindi heartland. 

A significant 57.45% of respondents prefer to shop both online and offline equally, indicating that consumers value the flexibility of both channels and may switch between them depending on factors like convenience, product availability, and pricing. 20.98%, however, would go purely digital, with over 85% of Millennial and Gen Z shoppers preferring online purchases. 

The report indicates overall optimism amongst consumers for the festival season ahead.

Other key findings from the report: 

•    49.14% of respondents plan to make new investments during the festive season, with a strong focus on traditional assets like gold (55.26%) and real estate (40.74%). 

•    Nearly half of the respondents (49.71%) plan to travel during the festive season, with 54.12% opting for family trips to destinations ranging from festival-centric locations to off-beat getaways.

•    Social media influences 53.69% of consumers, particularly in fashion and electronics, driven by influencer marketing and engaging content. Meanwhile, 41.24% of buyers still rely on TV ads and newspapers, especially for big-ticket items like cars and two-wheeler vehicles and jewellery. 

•    New clothes and accessories remain the most popular Diwali purchase category, with 86.35% of respondents planning to refresh their wardrobes, followed by personal gifts (72.84%) and home décor (70.83%). Electronics (60.92%) and jewellery (48.13%) also feature prominently on the shopping list. 

•    Sustainability is a growing factor in purchase decisions, with 83.36% of respondents considering environmental concerns, particularly in categories like fashion and electronics. 

•    For 63.82% of shoppers, discounts and offers are the primary motivation, while 48.77% are driven by tradition and cultural significance.

•    While inflation is top of mind for many, 70% of respondents indicated that it doesn’t dampen their choices. A significant portion (30.42%) plans to increase spending by 2550% to accommodate rising costs, showing resilience in consumer behaviour. 

•    31.84% consumers would like to buy furniture while 23.88% would like to get their house painted this Diwali.  

•    Electronics & Durables: Over 30% respondents are looking to buy a new mobile. 21.83% are in the market for durables and home appliances. 

The report, based on surveys with 3,480 respondents in the Hindi heartland (largely Uttar Pradesh), spans key categories such as gifting, fashion, jewellery, home décor, electronics, and automobiles, offering insights into possible consumer trends for Diwali 2024.  

Dr Sandeep Goyal, chairman, Rediffusion, said, “We started the Mood of Bharat study last year before the advent of the festive season. This year the study is bigger, deeper and more comprehensive – it covers lots more on the media stimuli too for the planned purchases.”  

Prof Alok K. Rai, vice chancellor, Lucknow University, added, “Bharat seems happy and wanting to splurge this Diwali. The consumer is buoyed possibly by the surging stock markets and the stability in the government and economy. These are good times.”  

Carol Goyal, The Bharat Lab, said, “Diwali 2024 is poised to be a vibrant season. The enduring tradition of celebration, coupled with modern shopping trends, paints a picture of optimism and joy.”