The festive season in India has always been a huge occasion for marketers. What was primarily an annual offline retail indulgence by consumers, shifted to the online buying space during the COVID-19 period. The post-Covid period is witnessing consumers seek a harmonious blend of both online and offline shopping experiences to truly immerse themselves in the spirit of celebration. The allure of online shopping, with its unmatched convenience, vast array of choices, and irresistible offers, has captured the hearts of consumers across the country.
For businesses and marketers, this dynamic shift demands agility and adaptability. Connecting with consumers on an emotional level during festivals is now paramount. The creation of imaginative and emotionally resonant campaigns that strike a chord with people’s sentiments takes precedence. Moreover, businesses must offer engaging experiences across both online and offline channels to cater to the demands of today’s digitally savvy consumers.
Adgully delves into the key trends and insights in consumer behaviour during the festive season, and how have these trends evolved over the years.
In recent years, there has been a notable shift in the approach of Indian consumers towards the festive season, especially the post-COVID-19 times, observes Sooraj Balakrishnan, Head of Marketing, Acer India. “Today”, he says, “people are more inclined towards a blended shopping experience that combines both online and offline channels to create the best festive atmosphere.”
“The convenience of online shopping, coupled with its extensive range of options and attractive offers, has made it particularly popular among consumers. As marketers, it is imperative for us to be agile and adapt to these evolving consumer preferences. Establishing emotional connections with consumers during festivals is paramount. Therefore, brands should prioritize the creation of imaginative and resonating campaigns that strike a chord with people’s sentiments. Furthermore, it is crucial to provide engaging experiences both online and offline to cater to the demands of today’s digitally savvy consumers. By embracing these changes, we can effectively navigate the festive landscape and deliver memorable experiences that fulfill the expectations of our target audience,” he adds.
One of the biggest changes we have seen is the consumer looking for experiences and reasons to celebrate and indulge post pandemic, notes Unmisha Bhatt, Co-founder & Chief Strategy Officer, Tonic Worldwide. Experiences take a front seat and savings take a back seat, she quips. According to Bhatt, every opportunity to celebrate is seen as a festival in itself.
“Festive seasons are longer than ever. Regional festivals have become national in scale, being seen celebrated across India and not in just a specific region, with the diverse spread of audiences across India. A lot of indulgent shopping and emotional shopping decisions are seen in India during the festive season. While a lot of this shopping used to happen primarily in retail, over the years, it has now evolved to a more omni-channel experience. One of the other trends is that ‘Window Shopping’, too, has become a digital addiction. Users are hooked to browsing through e-commerce sales and making a lot of impulse purchases,” she points out.
With e-commerce giants like Amazon and Flipkart bringing their biggest sales during the year with annual IPs, a lot of planned purchases are stalled in anticipation of these sales. With increase in credit accessibility in the form of credit cards and personal loans, as well as additional offers seen on certain banks, new customers on e-commerce are seen from newer segments. Credit and e-commerce has democratised shopping and made it accessible to larger audience sets. While e-commerce has been thriving on Tier 2 and 3 audiences over the last few years, festive sales are seeing a new high from these regions. Flipkart’s Big Billion Days sale, which recently concluded, saw deliveries to remote areas as reported by Flipkart.
Another trend seen is premiumisation, particularly in the categories of smartphones, laptops, tablets and home appliances. People are ready to pay that premium if they are convinced on the product. Surround influencer led marketing, content marketing and educative content can help build trust and confidence amongst consumers.
Today, new trends show people leveraging sales period and festive period for looking up their fitness gear like Wearables/ fitness bands, nutrition brands and healthy alternatives. Even in food, snacks, sweets, people are ready to pay a premium for the healthier alternatives that can enable and justify their indulgences, which has led to new age D2C brands leveraging this opportunity during festive. Medicines on Flipkart experienced a 2.5X surge in shoppers, multivitamins and Ayush products emerged as popular choices as per the recently concluded sales report.
“Brands need to leverage these opportunities across categories with immediate festive marketing high impact activities and communication since this is the best time to see the largest uptake and ROI. A lot of larger and legacy brands are seen being cautious in their spends during this festive, which is making newer brands and D2C brands that are spending, leverage the opportunity. People are today ready to experiment with newer brands and experiences. Over the years, we have heard smaller companies and brands state that they want to avoid the festive clutter due to lack of deep pockets, but I would strongly recommend that if we are not being seen and discovered when the customer is in a mindset to buy, they are no longer going looking for brands but are happy to indulge with brands that they stumble upon on their social feeds. Instagram is the new search engine and being present on Insta ads and Reel first content has become a necessity more than ever,” elaborates Tonic Worldwide’ Bhatt.
According to her, conversational commerce is another trend that brands can leverage during the festive season. With newer technologies, building unique shopping experiences online can also give an edge to brands with AR/ VR.
Avanish Agarwal, Consulting CMO, SMAAASH, notes that Indian consumers tend to increase spending during the festive season, with a focus on gifting and home improvement. “There’s a growing preference for online shopping due to convenience, discounts, and safety concerns. Festive shopping begins earlier each year, with consumers seeking deals and offers well in advance. E-commerce and social media play a significant role in influencing purchase decisions. Sustainability and eco-friendly products are gaining popularity, reflecting a shift towards conscious consumerism,” he adds.
Implications for marketers:
- Marketers should plan campaigns well in advance and leverage the digital space for promotions.
- Personalisation and segmentation are crucial to capture consumer attention.
- Building trust and promoting sustainable practices can enhance brand loyalty.
- Brands should consider integrating their offline and online strategies to provide a seamless shopping experience.
The festive season brings in big bonanza from e-commerce giants through their great sales, says Barin Mukherjee, Co Founder and CEO of Digital Refresh Network, an AI-assisted content solution company. “Therefore, most brands are directing their attention towards e-commerce platforms to maximise sales during the season. Some brands are also placing a strong emphasis on personalising their communications. This trend was kickstarted by Cadbury last year when SRK addressed ads specifically for small merchants. The current focus in communications and messaging revolves around utilizing technology and AI to customise brand communications for individual customers,” he adds.
The post-pandemic scenario
How has the COVID-19 pandemic impacted marketing and advertising strategies during this festive season? Are there any lasting changes in consumer preferences and brand engagement?
In the post-COVID era, says Sooraj Balakrishnan, brands are embracing the ethos of sustainable and ethical marketing, integrating innovative technologies such as augmented reality shopping to elevate the festive experience. He further adds, “Successful marketing thrives on its ability to evolve alongside shifting consumer values, necessitating the creation of finely tailored strategies. Businesses find the key to success in understanding their consumers, enabling the crafting of strategies that bring added brilliance to celebrations. This transformative journey towards sustainability and technology is not only reshaping the future of marketing but also promising a more radiant and enduring festive season and beyond.”
According to Unmisha Bhatt, the hybrid behaviour pattern appears to have become a lasting trend among consumers, not only in the workplace after the COVID-19 pandemic but also from a shopping perspective. “Given this preference, brands and marketers will have to leverage a strong omni-channel strategy and invest in newer tech like digital OOH innovations, hyper personalisation, marketing automation, CRM, linking retail and e-commerce amongst others. Customers are looking for better experiences through the shopping journey, pre-purchase, purchase and customer service. Brands will need to invest in the entire consumer journey to enhance the experience with a combination of tech and human touch as well as age-old relationship building for long-term retention and LTV,” says Bhatt.
Barin Mukherjee feels that COVID has overall accelerated the online purchase adoption. Therefore, he adds, there is more thrust on online sales. “Nevertheless, I believe that this year, we are far from being limited to staying indoors, which is why most brands are adopting an omnichannel strategy. Digital channels are being leveraged to increase brand awareness and drive e-commerce sales; but offline channels are expected to play a significant role this year.”
The pandemic accelerated the shift to digital marketing and e-commerce, says Avanish Agarwal, adding “Brands adopted a more empathetic and socially responsible tone in their communication. Safety and hygiene became top priorities, influencing consumer choices. Remote work and online education led to more screen time, impacting content consumption.”
According to Agarwal, the lasting changes in consumer preferences and brand engagement include:
- Digital channels and e-commerce will continue to play a prominent role.
- Safety and health-related messaging will remain relevant.
- Brands need to invest in creating engaging and informative digital content.
Emerging platforms
What are the emerging platforms and channels for advertising during the festive season, and how effective are they in reaching and engaging the target audience?
In today’s digital age, observes Sooraj Balakrishnan, emerging platforms for festive season advertising encompass mobile marketing, online video platforms like YouTube, and visually engaging content.
“These avenues are highly effective in reaching and captivating the target audience due to the prevalence of mobile device usage, the persuasive impact of videos on shopping decisions, and the ability of visuals to convey the essence of festive offerings. Furthermore, it is crucial to utilise the capabilities of social media, email marketing, and precision-targeted e-commerce platforms to build and maintain connections with a wide online audience, extending beyond the festive season to year-round engagement,” he adds.
According to Avanish Agarwal, social media platforms like Instagram, Facebook, and Google are essential. “Video streaming services like YouTube and OTT platforms are gaining popularity. Influencer marketing is effective in reaching and engaging the audience. Augmented reality (AR) and virtual reality (VR) experiences can create immersive brand engagement. These platforms offer precise targeting options and real-time analytics, enhancing ROI. However, competition is fierce, making it important for marketers to stand out with creative and relevant content,” he explains.
Mobile marketing plays a pivotal role in the advertising strategy for the festive season in India. This is due to the high penetration of mobile users and the fact that a significant portion of e-commerce traffic originates from mobile devices, says Unmisha Bhatt. Additionally, Bhatt adds, the shopper journey across various platforms, including Search (Google and YouTube) and Meta, especially Instagram, has evolved to become a new destination for both searching and shopping.
“Long-term intellectual properties (IPs) and events, when developed effectively, serve as excellent means to connect with festive shoppers. Events like the ‘Amazon Great India Sale’ or Flipkart’s Big Billion Day sales are prime examples. Nowadays, the sports season has become a festivity in itself. With the overlap of the festive season and the sports season, brands have a unique opportunity to capture consumer attention using these available strategies and media properties across various platforms. In this digital age, conversation commerce and social commerce are pivotal platforms for digital brands to exploit. Moreover, larger and well-established brands must take a proactive step into the digital realm, moving beyond mere surface-level online presence.” Bhatt says.
With e-commerce on the rise in India, how are traditional retailers and e-commerce companies adjusting their marketing and ad spending strategies to compete effectively during the festive season? Experts stress on the need for striking a balance between online and offline shopping.
Barin Mukherjee believes that COVID has accelerated the adoption of online purchasing, leading to a stronger focus on online sales. However, he believes that this year, restrictions on going out are less stringent, so most brands are adopting an omnichannel strategy. Digital channels are being used to enhance brand visibility and drive e-commerce transactions, but offline channels will also play a significant role this year.
Gone are the days when one could afford to be only traditional, observes Unmisha Bhatt. “Even if maximum sales for a CPG brand today comes from a kirana store, kiranas are selling it online on market places or grocery delivery platforms. The smarter strategy lies in being omni-channel, like the customer, and add value in the entire customer journey across retail as well as e-commerce. Similarly, D2C brands today realise the importance of physical outlets and are building a store presence in key locations and markets,” says Unmisha Bhatt.
In India’s growing e-commerce market, traditional retailers and online businesses must adopt marketing strategies, says Sooraj Balakrishnan. According to him, traditional retailers need a strong online presence while improving in-store experiences. “E-commerce companies should focus on digital advertising, data analytics, and precise targeting. Festive season campaigns require increased investment. Both should embrace innovation, including influencer marketing, interactive ads, and personalized recommendations. Striking a balance between online and offline shopping is key, with omnichannel strategies becoming vital in this competitive landscape.”
Traditional retailers are embracing e-commerce and offering omnichannel experiences, observes Avanish Agarwal. “E-commerce companies are broadening their product offerings and improving their customer service, with a special emphasis on pre-festive season sales and promotions. Competitive pricing, customer service, and product quality are crucial factors in this competitive landscape.”
Ad spend trends
Let us take a look at the ad spending trends during the festive season, including the allocation of budgets across various media channels, and the effectiveness of these investments in terms of ROI and brand visibility.
According to Avanish Agarwal, the allocation of budgets varies, but leans toward digital channels, especially social media and e-commerce platforms. “Traditional media like TV and print still have a share, but are declining. The effectiveness of investments depends on creative quality, targeting, and analytics. Brands should analyze ROI and brand visibility through performance metrics and surveys,” he adds.
Historically, says Unmisha Bhatt, ad spends have seen the largest spike during the festive season across categories. “As the festive season approaches, we observe brands becoming active, starting with events like the World Cup and capitalising on the Amazon and Flipkart sales. Many legacy brands continue to allocate a significant portion of their marketing budget to above-the-line (ATL) advertising, with comparatively lower investments in digital marketing. Modern digital brands are achieving a balanced presence across various platforms by tailoring their approach to capture the target audience’s attention based on the mindset and context of user behaviour on each specific platform. This approach strongly demonstrates a return on investment (ROI), where it is possible to measure top-of-the-funnel performance indicators such as awareness, affinity, and recall using metrics like reach, engagement, and views.”
“At the bottom of the funnel, metrics like walk-ins, e-commerce sales, clicks, and leads generated can be used to assess ROI. Simultaneously, a ‘through the funnel’ approach is the most effective investment strategy during the festive season, allowing brands to promptly convert top-of-mind awareness into actual moments of purchase,” says Bhatt.
“As the festive season approaches, digital marketing is rapidly changing. Brands use nostalgia for deeper connections and strategize social stunts for meaningful engagements. AI integration has enabled advanced personalization and analytics, and with careful use, deep fakes are setting content creation standards. Internet celebrities offer genuine reach and trust. Collaborating isn’t just influencer marketing; it’s about aligning with brand values. This season highlights digital marketing’s evolution. Brands are positioning and leveraging technology and trends. Our goal: deliver campaigns that stand out and yield results,” said Nikhil Kashyap, Vice President – Business and Strategy (North), RepIndia
link