36% Indians plan to increase their spending this festive season: report

The Bharat Lab has unveiled a festive report that provides a comprehensive view of consumer behaviour during the upcoming festive season, focusing on spending trends, shopping preferences, and investment patterns across India. It highlights how cultural traditions, modern shopping channels, and inflationary pressures shape purchasing decisions for millions of consumers. 

In terms of spending outlook, 36.18% of respondents plan to increase their spending this festive season, while 29.52% plan to spend less, largely due to inflation. Despite financial pressures, many consumers are eager to indulge in festive shopping, with particular focus on traditional purchases like gifts, clothes, and home décor.

As per the report, Fashion leads the list of purchases, with 86.35% planning to buy new clothes, followed by gifts (72.84%) and home décor (70.83%). Electronics, jewellery, and even automobiles also feature prominently in festive shopping plans. Consumers are increasingly eco-conscious, with 83.36% factoring environmental concerns into their purchases. Sustainable and eco-friendly options are becoming more appealing, particularly in categories like fashion, electronics, and home décor.

Consumers continue to adopt a hybrid approach to shopping, with 57.45% indicating they will shop both online and offline, depending on convenience, availability, and price. Younger consumers, particularly millennials and Gen Z, lean towards online platforms, while older age groups still appreciate offline experiences. Social media (53.69%) and online ads (50.80%) have become key influencers in driving festive shopping, with traditional channels like TV ads and word-of-mouth recommendations remaining relevant but less dominant.

Inflation has had a mixed impact on consumer spending. While 70% of respondents said inflation would not affect their festive shopping decisions, a significant number still anticipate higher spending due to rising costs. Around 28.94% expect to spend 25-50% more, and 21.56% foresee spending over 50% more than the previous year. Brands offering value-driven promotions and discounts are likely to attract those feeling the pinch of inflation.

Gift-giving remains an integral part of the festive season, with 73% of respondents planning to buy gifts, primarily focusing on sweets, fashion items, and home décor. Interestingly, more than 50% of consumers plan to spend over ₹50,000 on gifts, reflecting the cultural significance and joy associated with gifting during festivals. Eco-friendly gifting is also gaining traction, with a notable portion of consumers opting for sustainable products.

The report highlights that nearly half of the respondents (49.14%) plan to make investments during the festive period, with gold and real estate being the top choices. Gold remains a favored investment, especially among younger adults, with 55.26% planning to invest in the precious metal. Real estate is also popular, particularly among the 30-50 age group, showing a long-term focus on financial stability. Inflation is pushing many to increase their investment budgets, especially in gold and property.

A significant 33.62% of respondents plan to purchase new vehicles during the festive season. Two-wheelers (50.14%) dominate the automobile market, followed by popular four-wheelers (34.44%) and luxury vehicles (15.43%). There is a growing shift towards electric vehicles, with 25% considering this more sustainable option, marking a steady move towards eco-friendly mobility.

Travel is another important aspect of festive activities, with 49.71% of respondents planning trips during the season. While many are focused on family-oriented travel, there is also a trend towards off-beat locations and staycations. Inflation has impacted travel plans, with over 60% of respondents expecting to spend more, particularly on accommodations and transportation.

Environmental concerns play a pivotal role in shaping consumer choices, with 78.87% of respondents expressing concern about pollution and sustainability. This eco-conscious mindset is influencing purchases across categories, from clothing to electronics, with more consumers opting for green products and reducing their environmental footprint.

The report is touted to have surveyed a balanced demographic, with 52.5% male, 47.25% female, and 0.25% identifying as other. Age-wise, 65% of respondents fell between 20 and 40 years old, while income groups were split into low (27%), middle (45%), and high (28%) earners. Geographically, responses were spread evenly across the north, south, east, ansocid west regions of India. 

Read the full report here: