Diwali Shopping: Is the consumer still impressed by discounts?

There is something interesting about the way Indians shop during Diwali today. The excitement of the festive season is still very much there. Families look forward to buying something new, whether it is a television, a refrigerator, a washing machine or simply something for the home. But if you watch consumers closely, you will notice that the way they make their purchases has changed.

A big discount or an attractive offer may catch their eye, but that does not mean they will necessarily buy the product. The consumer has become more careful with his money. Before making a purchase, he checks prices, looks at other brands, reads reviews and, quite often, waits for a few days to see if a better offer comes along. Even when someone walks into a showroom, he has probably done quite a bit of homework already.

I remember a time when a good festive offer could make a big difference to a sale. A free gift, an exchange offer or a substantial discount would get people interested. Retailers would make the most of the Diwali rush, and consumers would enjoy the whole shopping experience. That excitement has not disappeared, but the decision to buy is not quite as easy as it used to be.

A discount may attract, but will it sell?

There is nothing wrong with brands announcing Diwali discounts. It is an important season for business, and every company wants to do well. Consumers too look forward to these offers. After all, who does not like getting a good deal?

But I wonder whether brands are relying a little too much on discounts. Just because a product is available at a lower price does not mean it is the right product for the consumer. People are looking at the brand, its quality and whether it will give them value for the money they spend.

I have always felt that a good brand has to deliver what it promises. A discount can make a consumer look at the product, but if he is not happy with its features or performance, he will move on to another brand. Today, there are enough choices in almost every category. Consumers are not short of alternatives.

Buying a durable is a different decision

This is particularly noticeable when it comes to home appliances and consumer durables. Nobody buys a refrigerator or washing machine with the intention of replacing it in a year or two. These are purchases that families expect to use for a long time.

So, naturally, they look at the features. Is the washing machine better than the one they currently have? Does the refrigerator offer more space and better cooling? Is the television worth upgrading to? Are the latest features really useful? These are some of the things people consider before making up their minds.

They also look at the price difference between brands. Sometimes, a product may cost a little more, but the additional features may justify the extra money. A consumer who has done his research will probably make that comparison before deciding.

And what about after-sales service?

This is one area I feel deserves much more attention. Brands spend a lot of money advertising their products and announcing festive offers. But how much thought do they give to the service that follows the sale?

Take a washing machine or an air conditioner. What happens when it stops working? Does the company respond quickly? Can you get a technician without making several calls? Are spare parts available? These are very real concerns for anyone buying a durable product.

I know of people who have been unhappy with a brand not because the product was bad, but because getting it serviced became such a headache. That experience stays with the customer. The next time he goes shopping, he may well choose another brand, even if it costs a little more.

For me, this is where a brand earns its reputation. Selling a product is one thing; looking after the customer after the purchase is quite another.

The consumer is thinking beyond Diwali

Another thing worth noticing is that people are looking at the longer-term value of what they buy. They may not mind spending a little extra if the product is good, has the right features and comes with dependable service. Saving a few thousand rupees today may not mean much if the product gives trouble later.

Of course, India will always remain a price-conscious market. There are consumers who will wait for the best possible offer, and there are others who will stick to a brand they have trusted for years. There is room for both. But I don't think the consumer today is going to be persuaded by a discount alone.

I also feel that Diwali advertising is becoming somewhat predictable. Every brand seems to have a similar story to tell: special prices, cashback, exchange bonuses and festive savings. There is nothing particularly wrong with these messages, but perhaps brands need to give consumers another reason to consider their products.

After all, the festive season is not just about buying something because it is on offer. It is also about making a purchase that the family will be happy with long after Diwali is over.

The excitement of Diwali shopping is still there. The difference is that consumers are taking their time, comparing their choices and thinking a little harder before spending. Brands would do well to recognise this change. A discount can certainly get noticed, but it is the product and the experience that will finally matter.