Over 70% of Bharat unfazed by inflation, plans to spend big this Diwali: Bharat Lab report

The Bharat Lab, a collaboration between ad agency Rediffusion and Lucknow University, has unveiled its Diwali Pulse 2024 report, shedding light on the shopping trends and consumer sentiment in India’s Hindi heartland ahead of the festive season. With insights gathered from 3,480 respondents, the study highlights an optimistic atmosphere despite inflation, with a majority of consumers eager to maintain or increase their spending. Covering categories like fashion, electronics, and home décor, the report offers a deep dive into Bharat's evolving preferences as the festive spirit approaches.

Dr. Sandeep Goyal, Chairman of Rediffusion, provided insight into the study conduct, stating, “We started the Mood of Bharat study last year before the advent of the festive season. This year the study is bigger, deeper and more comprehensive – it covers lots more on the media stimuli too for the planned purchases.”

The reports showed that a significant portion of the respondents (36.18%) plan to increase their festive spending compared to last year, while 35.02% will maintain their previous levels. However, 29.52% are scaling back due to rising costs. This balance between consumer optimism and caution is echoed by industry leaders. As Dinesh Jain, Managing Director of PMJ Jewels, notes, “The post-pandemic recovery has led to increased consumer spending, with a notable rise in demand for both traditional and contemporary jewellery.”

Key consumer trends reveal fashion as the dominant category, with 86.35% of respondents planning to refresh their wardrobes. Personal gifts (72.84%), home décor (70.83%), and electronics (60.92%) follow closely. The sustainability movement is also gaining traction, with 83.36% of shoppers factoring in environmental concerns, particularly in fashion and electronics purchases.

It indicates that 86.35% of respondents plan to buy new clothes and accessories, with men slightly leading this trend at 51.75% compared to 47.92% for women. In the electronics sector, males show a stronger inclination, accounting for 55.66% of planned purchases, while female buyers represent 43.87%. Conversely, women are more prominent in the home décor category, with 73.31% expressing intent to make purchases.

Online shopping continues to rise, with over 58% of consumers preferring a hybrid approach of both online and offline purchases. Millennials and Gen Z lead this digital charge, with over 85% opting for online shopping. Influencer marketing plays a key role, with 53.69% of consumers swayed by social media, particularly in categories like fashion and electronics.

The festive season also brings significant investment plans, with nearly half of the respondents intending to invest in traditional assets such as gold (55.26%) and real estate (40.74%). These trends align with a growing focus on financial security, as Prof. Alok K. Rai, Vice Chancellor of Lucknow University, points out, “Bharat seems happy and wanting to splurge this Diwali. The consumer is buoyed possibly by the surging stock markets and the stability in the government and economy.”

Inflation, while a concern, does not seem to dampen spirits entirely. Over 70% of respondents indicate that inflation won’t affect their spending choices significantly. In fact, 30.42% plan to increase their budgets by 25-50% to accommodate higher prices, showcasing resilience in consumer behavior. Krishnarao Buddha, Senior Category Head at Parle, emphasizes, “We expect an increase of over 25% during the festive season, and to cater to such demand, we are launching varying gifting options.”

Additionally, nearly 50% of respondents plan to travel during the festive season, with family trips making up 54.12% of the planned travel. This mirrors a broader trend toward balancing tradition and leisure during Diwali.

As the festive season approaches, brands and businesses have a clear opportunity to leverage consumer optimism, particularly through discounts, digital engagement, and sustainable options.