Festive season sparkles as Indians to spend 40 per cent more this Deepavali

The appetite for consumption of goods that are lifestyle-centric seems to have gone up, thanks to lowering of interest rates. This, among other reasons, have led to a marked growth of 40 per cent in consumer demand, compared to the festive season last year.

This data point came up in a survey conducted by Assocham and covered consumers in age groups 24-34 and 35-45 years in Delhi-NCR, Bangalore, Chennai, Mumbai, Ahmedabad, Kolkata, Chandigarh, Lucknow and Indore. 

The uptick in demand is visible in the sale of automobiles including passenger cars, two-wheelers, mobile handsets, consumer durables and fashion -wears. The eastern and western region topped the demand chart while the northern region is expected to catch up in the run-up to Deepavali. The grocery spend has gone up by about 20 per cent while budget apparels risen by 52 per cent. Likewise, it is expected that spend on lifestyle and fashion accessories would surge by 32 per cent in the next three months in view of the festive season.

Rural demand is also adding to the festive fervour, with good monsoon lifting buyers’ confidence especially the category of farmers and farm labour. Clear pick-up is visible in the sale of two-wheelers, jewellery and even consumer durables in the rural and semi-rural areas in most parts of the country.  

Delhi and other north Indian cities would pick up pace in the next few days in jewellery buying, apart from consumer durable. “Green shoots in the economy are giving a lot of confidence to consumer demand, which would lead to an appetite for fresh investment after a brief lag,” opines Assocham Secretary General DS Rawat. 

Women are likely to spend more on apparel than men, while the latter tend to spend more on lifestyle accessories than the former, notes the survey. The average amount spend on mobiles during the festive season is expected to range from Rs 15,000- 35,500, up from Rs 10,000-15,000 for the last six months. In case of mobile phones and other electronics, consumers will re-evaluate various brands and their offerings especially, in terms of the value proposition before making the purchase decision. 

The average ticket size for home appliances and electronics during the festive season is expected to be Rs 15,000-25,000 six months ago. Typically, the middle and upper middle class spend around Rs 10,000 to Rs 25,000 in the festive season.