Retailers across key categories that thrive during festivals are dishing out offers, special products and more in the hopes of getting big business this festive season
Bengaluru: As the festive season 2024 begins, retailers across India are gearing up to capitalise on the surge in consumer spending and engagement. Brands are exploring every avenue, from exclusive product launches and appealing promotions to immersive in-store events and improved online shopping experiences to tempt customers to spend big.
Total festive spending in urban India is estimated to be approximately Rs 1.85 lakh crore or $22 billion, according to a survey conducted by community social media platform LocalCircles. One out of every two Indian households is expected to spend more than Rs 10,000 during this season.
Continue reading to discover the diverse strategies retailers across various categories are implementing, their sales growth expectations, and how they intend to adapt to the changing preferences of festive shoppers in a competitive market.
Beauty & Wellness
Preparations: Indian beauty brands are focusing on limited-edition collections, exclusive gift sets, and festive-inspired makeup ranges.
UK-based cosmetics company The Body Shop is offering a range of pre-packed gift sets, create-your-own (CYO) Gift options and gift-with-purchase offers. “These offers are designed to elevate the customer experience while making gifting both convenient and personal for all,” said Vishal Chaturvedi, Group chief revenue officer of Quest Retail, the Indian franchisee for The Body Shop.
Sustainability also remains a priority, with eco-friendly packaging and clean beauty formulations taking centre stage.
“This year, we are furthering our partnership with Plastics for Change by integrating fair trade verified recycled plastic into our festive merchandise like makeup and travel pouches,” Chaturvedi added.
According to Bonish Jain, founder of Mumbai-based PAC Cosmetics, there is a challenge of handling the higher volume of orders on time, and without error during the season.
“Strategic planning, data analysis, and investing in technology such as inventory management systems can be extremely helpful when it comes to stocking up, anticipating demand patterns, and planning the best delivery routes,” said Jain.
Expectations: During Diwali 2023, media reports highlighted a 51% surge in beauty and cosmetic orders, and brands are anticipating a continued increase in demand this festive season, building on last year’s growth.
Vidushi Goyal, chief marketing officer (CMO) of Swiss Beauty, is targeting a 30% growth this season, focusing on expanding the brand’s market reach and introducing new product lines.
On the other hand, Saahil Nayar, co-founder of Mila Beauté, aims for a revenue milestone of Rs 100 crore by FY25 and is projecting a 25% increase in numbers on a quarter-over-quarter basis, compared to the same period last year.
Vikas Bagaria, founder of personal hygiene brand Pee Safe, notes that the festive season does not drive as much traction for the brand compared to categories like cosmetics and skincare. However, he remains optimistic, expecting 1.5 to 2 times increase compared to regular months.
“Over the next two months, we are aiming for a 50%-60% month-on-month growth, translating into a quarterly growth target of around 30%,” he added.
Fashion & Lifestyle
Preparations: Apparel brands are accelerating their strategies for the festive season by expanding product offerings with special collections in ethnic and fusion wear, strengthening their omnichannel presence, launching early sales, and engaging in influencer partnerships.
Brands are expected to launch flash sales or limited-time period sales to create urgency within customers and drive quick purchases “We will be using emailers and social channels to announce 24-hour flash sale offers which will gain the eye of the customer and encourage quick purchases,” said Akshay Maurya, chief business officer of the online clothing brand The Label Bar.
Expectations: This year, the season is expected to show weak sentiment for clothing demand, according to Clothing Manufacturers Association of India (CMAI), due to a shift in consumer spending towards other lifestyle avenues, along with a slowing economy and rising inflation. Despite these challenges, many brands remain optimistic about experiencing a surge in demand,
TIGC is anticipating a sales increase of 20-25% compared to last year, similarly The Label Bar also expects a 20% growth in sales along with a 60% rise in website traffic.
ZYOD, a business-to-business clothing manufacturing platform records 10-20% of its annual revenue of ethnic wear coming in during the festive period.
“The season is a big driver for both domestic and international sales, and we prepare all year to make sure we are ready to meet the demand. Compared to last year, we have set an ambitious growth goal of increasing sales in ethnic wear by 20% during this festive period,” said Ankit Jaipuria, co-founder of ZYOD.
Alka Dembla, head of retail at The Indian Garage Co (TIGC), anticipates a shift towards in-store shopping experiences, hyper-personalised marketing, and digital-first strategies to better engage customers. She noted that brands will increasingly utilise AI-driven insights for more effective customer targeting and will actively incorporate social commerce to boost conversions.
Gold & Diamonds
Preparations: Gold prices are witnessing a strong resurgence in both international and domestic markets, with increased jewellery buying and investment activities expected to persist, especially during the festive period, according to World Gold Council.
Fine jewellery retailers are responding by expanding their presence and diversifying offerings. For example, Malabar Gold & Diamonds plans to open 20 new showrooms in October, while Tanishq, part of the Tata group, has partnered with the De Beers Group to promote and expand the natural diamond market in India.
“This season, I foresee increased use of digital engagement through virtual consultations and influencer collaborations to reach a wider audience,” said Amit Pratihari, managing director of De Beers Forevermark. “Flexible payment options, such as instalment plans and buy-now-pay-later schemes, are likely to be promoted to make luxury purchases more accessible.”
According to Aditi Khandelwal, co-founder of direct-to-consumer (D2C) silver Jewellery brand Kicky & Perky, “Early preparation for the festive season is becoming important, with new collections launching well in advance to give customers more time to explore and purchase. There is a trend towards creating culturally specific product lines that cater to various festivals, indicating a move towards more targeted and personalised marketing.”
Expectations: Despite the rising prices of gold, silver, and diamonds, demand from rural areas is expected to remain strong, particularly due to favourable monsoon conditions and an increase in crop sowing this year, which will likely boost purchasing power in these regions.
Kicky & Perky has set an ambitious growth target of 300% compared to last year, having already expanded its online presence from two to five sales channels.
Lab-grown diamonds, known for their affordability and sustainability, are also seeing rising popularity. Jewelbox, a lab-grown diamond jewellery brand, is aspiring a threefold increase in sales compared to the same period last year and is expanding its presence with new store openings in cities like Delhi, Gurgaon, Chennai, and Guwahati ahead of Diwali, according to co-founder Vidita Kochar.
Similarly, Solitario, another lab-grown diamond brand, is aiming for a 25% year-over-year growth, surpassing the industry’s average growth rate of 18%, as stated by Kabir Kate, CMO of Solitario.
Home Decor & Furnishing
Preparations: The home decor and furnishing industry thrives during the wedding and festive seasons, as consumers eagerly seek to enhance their spaces with new furniture and decor, often opting for these items as thoughtful gifts.
According to Anand Nichani, managing director of the mattress brand Magniflex India, “Sales often see a significant boost during the wedding season, as many newlyweds set up their homes and invest in essential furniture purchases, including mattresses.”
Online wallpaper retailer Life n Colors has expanded to new categories including home textiles, such as sofa and chair upholstery fabrics and curtains, alongside art prints and fresh wallpaper designs in accordance with the season.
Expectations: According to tech firm Unicommerce, e-commerce platforms witnessed a remarkable 50% surge in gross merchandising value (GMV) for the home decor category during the recent festive season sale compared to last year. Also, LocalCircles revealed that 40% of Indian households plan to invest in home decor.
Life n Colors is projecting a 50% growth this season compared to last year, fueled by its recent expansion into various locations and countries. Meanwhile, Magniflex is seeking a 20% increase in sales during the same period.
Shopping Centres
Preparations: Shopping centres have been capitalising on the growing trend of experiential retail by employing strategies like festive decorations, thematic events, special promotions, discounts, and loyalty programs, using innovations like virtual reality (VR) and augmented reality (AR) as well as partnering with brands for pop-up stores for years.
Recently, Indian malls have also begun adopting an omnichannel approach for convenience, exemplified by Infiniti Malls’ plan to launch an omnichannel model and Inorbit Malls’ becoming the country’s first mall operator to venture into e-commerce.
“This festive season, we expect mall sales strategies to centre around personalisation, along with technology integration,” said Santush Pandde, chief operating officer – real estate at Grauer & Weil India, owner of Growel’s 101 Mall in Mumbai.
Infiniti Mall is developing a 360-degree experiential offering that combines shopping, dining, and entertainment, featuring events like Dandiya, live musical concerts, comedy shows, kids’ carnivals, and larger-than-life décor along with offers and promotions. Nexus Select Trust has enlisted Bollywood actor Ayushmann Khurrana for a campaign that will run from Dussehra through Diwali and extend into Christmas.
Expectations: The shopping centre sector in India is performing exceptionally well, with a reported 11.5% increase in mall consumption nationwide for the fiscal year 2024, as per the Shopping Centres Association of India (SCAI). North India and West India experienced the highest growth rates, at 13.0% and 13.9%, respectively.
Growel’s 101 Mall is targeting a footfall increase of 15%-20% thanks to its festive programs and anticipates a 20% rise in sales during this period.
Meanwhile, New Delhi-based Elan Group is also forecasting demand across various categories, especially in fashion and personal care. “We expect significant growth in foot traffic and sales through engaging social media campaigns, influencer partnerships, and exclusive festive offers,” said Vidhi Attri, senior operations manager at Elan Group.
Additionally, mall operator DLF Retail is pursuing ambitious growth by introducing nearly 80 new brands in recent months, as per media reports.
Food & Beverage
Preparations: Quick service restaurants (QSRs), cafe chains, bakeries, and snack brands nationwide are gearing up for an increase in demand by launching special festive menus, organising events, tastings, and cooking workshops, enhancing social media promotions, and ramping up their delivery services.
“Brands are expected to focus on regional advertising campaigns, tailored to the diverse cultural preferences of different regions,” said Akshali Shah, executive director, Parag Milk Foods. “Collaborations and partnerships with influencers, chefs, and food platforms will boost brand awareness and promote product usage in festive recipes.”
Vimal Sharma, founder of luxury chocolate brand Smoor, notes that food brands are increasingly shifting towards quick commerce platforms, as customers prioritise convenience for last-minute gifting. Smoor is offering customisable gift hampers, along with special discounts on bulk corporate orders and early-bird deals for those ordering through quick commerce platforms and smoor.in.
Masterchow, an Asian food brand in the ready-to-cook segment, is launching a special campaign in October that includes a ‘fun’ challenge, giving participants the opportunity to win prizes worth up to Rs 5 lakh. “This year, we are taking a more interactive approach with our new campaign, encouraging active audience participation to enhance brand engagement,” said co-founder Vidur Kataria.
Expectations: Masterchow is pursuing a 400% growth compared to the same period last year, fueled by the introduction of seven new stock-keeping units (SKUs). Meanwhile, Bakingo, an online bakery and cake delivery service, is expecting over 60% growth compared to last year, driven by expansion into new cities and a focus on scaling its operations.
Continental Coffee Ltd. (CCL), a publicly listed instant coffee retailer, has set double-digit growth targets for this period. “Our growth is fueled by the rising demand for coffee in both domestic and international markets. We are leveraging influencer marketing, dedicating around 25-30% of our budget to this strategy,” said Raja Chakraborty, CMO of CCL.
Mumbai-based ice cream chain Naturals is aiming for double-digit growth during the season and is also anticipating a surge in bulk orders. “With the growing demand for bulk orders during this time, we expect a significant boost in sales volume and a notable increase in revenue compared to last year,” said Siddhant Kamath, director of Naturals.
