Everyone enjoys the goodies, the glitter and glamour and the endless zest for living that grips people around Diwali. All this does translate into increased consumer spending. Some consumers delay their purchase decisions until the festive season, both due to auspicious reasons and also to avail of the festive offers available during this time. This is especially important this year, as, hit by the economic slowdown, consumers have tightened their budgets, and the retail sector has been one of the biggest casualties. With market sentiments gradually turning positive, a ray of optimism and confidence can be seen in the Indian consumer. The festive season has built in expectations for most retailers, that the consumer would be back on a spending spree again.

Historically, the festival season accounts for around 20-40 per cent of the yearly sales in the consumer-centric sectors. Last year, there was a subdued demand during the festival season on account of recession in the market. However, initial data for the current year shows that the festival season has started on a good note as people are feeling good about the economic turnaround. For example a 10-35 per cent growth in sales has been observed in lifestyle products during this period.

Retailers are all set to cash in on this opportunity. Many companies in the consumer durables sector, automotive sector and other extended categories have initiated large scale advertising campaigns, announcing the launch of a number of new brands, new models of existing products in the market, special festive discounts etc. to boost consumer spending. There are deals galore everywhere. Other than straight discounts, consumers are lured with travel packages, cash vouchers and other sorts of gifts.

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