Festive Forecast 2024: What’s Trending This Season in India?
From Diwali to Christmas, these few months of the year bring a surge in spending across categories. This article highlights the key trends that will dominate this 2024 festive season.
Festivals hold a special place in the heart of India. They act as the glue that binds communities together, breathes life into traditions, and spreads joy and unity. But there's another side to festivals—they're a boon for the economy, giving a much-needed boost to the D2C, retail, eCommerce, food, and travel sectors.
Thanks to technology, festivals are getting a modern makeover—think mobile apps for everything festival-related, virtual gifts, and sharing the celebrations on social media. So, shopping habits have moved online, consumers are looking for more personalized experiences, and there's a growing trend towards celebrating in eco-friendly ways.
Businesses are catching on, too, tailoring their offerings to be more tech-savvy and in tune with what consumers want today. The festive season kicks off with Onam, spans through Navratri and Diwali in October-November until Christmas and New Year in December, contributing 30-35% of annual sales across most categories.
Today’s article highlights festive trends you must know for the upcoming 2024 festive season.
Impact of Festive Season on Different Sectors
Festive Season is the golden window for founders, especially if you're into D2C, eCommerce, or retail. It's the perfect time to introduce those special products or deals you've been thinking about and really get your brand out there with some heartfelt, festive-themed marketing.
An Ipsos study commissioned by Amazon India reveals a surge in consumer excitement for shopping. Nearly 90% of respondents are eager to shop during the festive season, and 70% specifically look forward to shopping online.
Festivals in India bring a significant boost to multiple sectors, with businesses gearing up to meet the surge in consumer demand:
D2C: The festive season drives an increase in consumer demand, with shoppers looking for gifts, discounts, and festive-specific products. This period allows D2C brands to ramp up marketing efforts, engage in targeted promotions, and offer limited-edition products that create urgency among consumers.
Data from GoKwik's network, which covers more than 4,000 direct-to-consumer (D2C) brands, reveals a 38% increase in Gross Merchandise Value (GMV) and a 49% growth in orders in July compared to June of this year (2024).
Retail: The festive season is crucial for retail, driving sales through festive discounts, special promotions, and exclusive product launches. Consumers flock to stores to purchase gifts, decorations, and household items, making it a make-or-break period for retailers.
In its 2024 forecast, the National Retail Federation (NRF) anticipates positive growth for both online and brick-and-mortar sales. Retail sales are projected to increase worldwide. The Indian Retail Industry expects a 20-25% increase in sales for fashion and jewellery categories, with a mix of traditional and modern designs.
eCommerce: The rise of online shopping has transformed how consumers approach festivals. eCommerce platforms see record sales with offers like the Great Indian Festival or Big Billion Days, making it a prime time for founders to capitalize on digital promotions and flash sales.
According to Redseer Report 2024, eCommerce saw a 13% growth in Gross Merchandise Value (GMV) during last year’s festive season (September-December 2023), and this year, it has the potential to grow by at least 20%.
Fashion: Festivities trigger a wave of shopping for traditional and contemporary outfits. Fashion brands, both online and offline, launch festive collections, and with the increasing focus on sustainable fashion, eco-friendly options are gaining popularity among conscious consumers.
Last year, there was a 32% increase in sales for fashion and lifestyle brands, and it is expected to grow more this year. (Based on Razorpay Diwali Report, 2023)
Food: From festive sweets to gourmet treats, food brands see a surge in demand. Home-cooked meals are paired with purchases from restaurants and cloud kitchens, increasing sales in the packaged and fresh food industries.
In 2023, the festive season brought in a 40% increase in dining out and a 48% increase in restaurant transactions. (Based on Razorpay Diwali Report, 2023)
Travel: Festivals often lead to family reunions and holidays, boosting the travel and hospitality sector. Travel startups, hotels, airlines, and cab services experience high bookings as people travel to celebrate with loved ones or take festive vacations.
During the 2023 festive season, India saw a 2X increase in spending on flight tickets and a 35% increase in spending on holiday accommodation. (Based on Razorpay Diwali Report, 2023)
Top 8 Festive Trends for 2024
Meesho has released its ‘eCommerce Festive Forecast 2024’, offering an in-depth look at seller readiness and consumer shopping trends for the upcoming festive season.
eCommerce Budgets on the Rise
Over 60% of Meesho shoppers plan to increase their online shopping budgets this festive season, highlighting the growing dominance of eCommerce in festive spending.
The Age of Influencers
Half of the respondents (50%) use influencer affiliate links for trending products, while nearly 70% follow influencers for reviews and hauls, showcasing the strong impact influencers have on shaping purchasing decisions.
FOMO Fuels Festive Buying
Social media drives festive shopping, with 40% of shoppers influenced by FOMO (fear of missing out) on popular products. This highlights how platforms impact consumer behaviour during this period.
Decision Drivers
Positive reviews are key for 54% of Meesho shoppers, while 43% value high-quality content and detailed product information, emphasizing the importance of trust-building through content.
Planned vs. Last-Minute Shopping
Around 60% of respondents prefer to plan their festive purchases in advance, while 24% mix planned and last-minute buys, and 16% focus purely on last-minute shopping.
Planned shopping involves organizing purchases ahead of time, allowing for better deals and less stress. Last-minute shopping is characterized by rushed decisions and often higher costs due to urgency and limited options.
Local and Artisanal
A surge in interest in locally sourced and handcrafted items highlights a shift towards supporting small businesses and celebrating regional craftsmanship.
Sustainable Celebrations
Eco-friendly products and practices are in demand, with an increasing focus on minimizing waste and supporting ethical brands.
The National Retail Federation (NRF) reports that 35% of shoppers prioritize sustainability in their holiday purchasing decisions, a trend expected to grow globally.
Digital Festivities
Virtual and augmented reality experiences are enhancing celebrations, offering innovative ways to connect and celebrate remotely.
Brands like Myntra and Lenskart have integrated AR into their shopping experiences. It allows users to visualize and do try-on of the products, making festive shopping more interactive and engaging.
Final Thoughts
As holiday seasons change, so do trends and technology, especially online shopping, which is becoming a huge part of people deciding what to buy. Nowadays, it's easy to get influenced by favourite online personalities and the buzz on social media, which shapes shopping habits.
To keep up, you really need to step up the game as a brand by focusing more on your online presence, making sure people have a smooth shopping experience on the website, and teaming up with influencers. This way, you can stay in the game and keep attracting customers in the lively Indian market.
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