India’s festive season is more than just a time of celebration; it’s a national phenomenon that brings together families, friends, and communities in a joyous display of cultural unity. Beginning in mid-September and lasting around 45 days, this period is marked by vibrant celebrations, religious rituals, family reunions, feasts, and above all, an economic surge that fuels the country’s markets. At the heart of this season lies Diwali, also known as the Festival of Lights, which marks the grand finale of the festivities. This period also encompasses other major festivals such as Navratri, Dhanteras, Chhath Pooja, and Bhai Dooj, all of which play significant roles in shaping the spirit and economy of the season.
Let's explore how India’s famous festivals—Diwali, Deepawali, Bhai Dooj, Chhath Pooja, and Dhanteras—boost consumer sentiment, drive economic activity, and create an atmosphere of joy and unity. We’ll also delve into how consumer behavior has evolved post-pandemic, with a focus on digitization, online shopping trends, and the ever-increasing role of tier 2 cities in the national economy.
A Season of Festivals and Economic Indulgence
The Indian festival season kicks off with the celebrations of Navratri, a nine-day festival dedicated to the worship of the Goddess Durga, followed closely by the grand finale—Diwali, the Festival of Lights. Throughout these days, the nation is enveloped in festive cheer, religious rituals, and social gatherings. Diwali, known as Deepawali in some regions, is celebrated across the country with great enthusiasm. The festival symbolizes the victory of good over evil, with homes lit by oil lamps, bursting of firecrackers, and the exchanging of gifts.
In addition to its cultural significance, the festival season has a profound impact on India’s economy. Consumer spending surges as people purchase new clothes, gold, jewellery, household goods, electronics, and festive sweets. This shopping frenzy is especially noticeable during auspicious days such as Dhanteras—a festival celebrated just before Diwali that marks a time for buying gold and precious items. The tradition of gifting during Diwali, Bhai Dooj, and Chhath Pooja further fuels spending, making this season one of the most economically vibrant periods of the year.
Dhanteras: A Festival of Prosperity and Jewellery
One of the most significant days during the Diwali season is Dhanteras, also known as Dhantrayodashi. It falls one or two days before Diwali and is considered an auspicious time for purchasing gold, silver, and other precious metals. According to the Mastercard Economics Institute (MEI), jewellery spending on Dhanteras surged by over 400% in previous years compared to regular days, and this trend is expected to continue in 2024.
The legend of Dhanteras holds that Goddess Lakshmi visits the homes of devotees on this day, bringing prosperity and wealth. To welcome the goddess, people clean and decorate their homes, light oil lamps, and make important purchases, especially jewellery. Gold buying is a key part of this tradition, and in recent years, we’ve seen a shift toward more modern jewellery options, with both traditional stores and online platforms offering special discounts to entice shoppers.
In addition to gold, Dhanteras is also a day for buying household items, electronics, and vehicles, all of which are considered symbols of prosperity. Retailers across India offer incredible deals, making Dhanteras one of the busiest shopping days of the year.
Festive Apparel and Gifting: A Shopping Surge
Another key component of the festival season is the buying of new clothes, which holds special cultural significance in India. During Navratri and Diwali, families shop for new apparel, both for themselves and for gifting to loved ones. MEI data from previous years shows that spending on apparel during the weekends of Navratri and Diwali typically sees a boost of 50% to 60%, much higher than regular weekends during the festival season.
Shopping for festive attire is an integral part of the celebrations, with women, men, and children donning new clothes to mark the beginning of new ventures, fresh starts, and the victory of good over evil. In 2024, online platforms and brick-and-mortar stores alike are expected to offer an array of festive collections, from traditional Indian wear such as sarees, lehengas, and kurtas to modern outfits that reflect the evolving fashion tastes of the country’s youth.
Gifting is also a central aspect of the season, especially during Diwali, Bhai Dooj, and Chhath Pooja. Exchanging gifts symbolizes love, affection, and goodwill, with common gifts ranging from sweets, clothes, and jewellery to more modern items like electronics and home decor.
Chhath Pooja and Bhai Dooj: Celebrating Relationships and the Sun God
Following Diwali, the festivals of Chhath Pooja and Bhai Dooj extend the celebrations. Chhath Pooja is primarily celebrated in Bihar, Uttar Pradesh, and parts of Jharkhand, and it honors the Sun God. This festival is marked by rigorous fasting, prayers, and offerings made to the setting and rising sun along riverbanks. Although not as commercially driven as Diwali, Chhath Pooja involves significant spending on puja items, fruits, and traditional attire.
Bhai Dooj, on the other hand, celebrates the bond between brothers and sisters. Similar to Raksha Bandhan, sisters pray for their brothers' well-being, and in return, brothers give gifts to their sisters. This festival sees the exchange of sweets, clothes, and jewellery, boosting spending on these items.
The Rise of Tier 2 Cities: A New Economic Force
One of the notable trends in recent years has been the rise of tier 2 and tier 3 cities as key drivers of economic growth during the festival season. While metro cities like Delhi, Mumbai, and Bangalore remain major hubs of consumer spending, smaller cities like Indore, Udaipur, and Lucknow have seen significant increases in spending during Navratri and Diwali.
In 2023, spending in tier 2 cities during the Diwali period rose by over 190%, compared to an increase of about 120% in metro areas. This trend is expected to continue in 2024, fueled by growing affluence, financial inclusion, and digitization. As more people in smaller towns gain access to online shopping platforms and digital payment methods, their participation in the festival economy has increased, making them key players in driving economic activity.
Online Shopping and Pre-Festival Sales
The digital revolution has transformed how India shops during the festival season. E-commerce platforms have turned into virtual bazaars, offering incredible deals on electronics, apparel, home goods, and more. Pre-festival sales have become a key feature of the shopping calendar, with online transactions surging by more than 200% during this period in 2023. This trend is expected to continue in 2024, especially as online platforms roll out special deals and bank offers to attract shoppers.
The convenience of online shopping, combined with the ability to compare prices and get discounts through card payments, has made e-commerce a favorite among modern Indian consumers. Electronics, home decor, and apparel are the biggest beneficiaries of these sales, with consumers flocking to digital platforms to grab deals on high-ticket items like smartphones, washing machines, and furniture.
As Diwali approaches, online shopping tends to shift towards items like clothes, groceries, and confectioneries, as people prepare for family gatherings and festive feasts. MEI data from 2023 shows that the share of online spending on groceries and confectioneries rises by nearly 5 percentage points during Navratri and Diwali compared to the pre-festival sales period.
The Traditional Charm of Brick-and-Mortar Stores
Despite the growing popularity of online shopping, the charm of shopping in vibrant local markets remains strong. For many, the festive experience is incomplete without a trip to the bustling bazaars, where shops are decorated with lights, and streets are filled with the aroma of sweets and snacks.
In-person shopping continues to dominate spending on groceries, confectioneries, jewellery, and cosmetics during the festival season. In 2024, we expect more than half of the total in-person transaction volume during Navratri and Diwali to come from these categories, driven by traditions of gifting and celebratory feasts. Jewellery purchases, especially on Dhanteras, are also expected to see a significant boost as people flock to shops to buy gold and other precious items.
Conclusion
As India prepares for the 2024 festival season, there is much to look forward to. From the emotional and cultural richness of Diwali to the growing economic power of tier 2 cities, the season promises to be a period of joy, unity, and prosperity. With rising affluence, increased digitization, and the timeless traditions of family, gifting, and community gatherings, the festival season in India is a true celebration of life and happiness.
Whether you’re shopping for that perfect Diwali gift, celebrating the bond of siblings on Bhai Dooj, or preparing for the worship rituals of Chhath Pooja, the festival season brings out the best in India’s rich cultural heritage.
Here’s wishing everyone a joyous and prosperous Diwali and a wonderful festival season ahead!
[The images used in this blog post are not owned by Aavyaa, they are just for entertainment purposes]
| DHANTERAS | DEEPAWALI | DIWALI | FESTIVAL OF LIGHTS | CHHATH POOJA | BHAI DOOJ | DEEPAVALI | GODDESS LAKSHMI | RAKSHA BANDHAN |
~Mimansa Sharma
