Festive advertising trends – why consumers will not splurge this year
Though consumer sentiments are high, we will not see aimless splurge anymore by consumers during the festive season. The COVID-19 crisis has changed the consumer psyche and communication that is not rooted in overt consumerism will be more attractive to us, writes Arun Fernandes, Founder-CEO, hotstuffmedialabs.
Though the Ganesha festivities were much muted than before the pandemic, this year at least saw people coming out and shop. This was way better than the almost deathly silence that the festivals witnessed in 2020. Marketeers seem to be enthusiastic, hoping that the pall of gloom is finally being lifted and while India clocked in 70 crore+ vaccination – “markets are opening” is the buzz phrase of this phase.
In fact, the last quarter of the calendar year is being predicted to be a revival of sorts for the Indian economy, as Indian consumers will loosen their purse strings a wee bit wider than last year. YouGov’s recent market study gives a big thumbs up to the Diwali spending Index, which is by and large traditionally indicative of the boost in third quarter sales every year in India. This year, the propensity towards spending is higher than last year as per the survey and a major trigger for the same is an overall positivity marked by this period of festivities. Brands are all geared up with their spending strategies with deep discounts, festive offers and aggressive share-of-mind campaigns. E-commerce is looking at a higher uptick this year than total sales of $4.8 billion, which was last year. A larger number of consumers, who were not online buyers have been pushed to buy online because of the extended lockdowns. They have tasted the ease, wide choice, variety, the thrill of discounts and flash deals and now they are hooked.
Nevertheless, this year though the sentiments are high in terms of consumer spending, urban consumers have become much more discerning than what they were in the pre-pandemic era. Uncertainties still loom large and, therefore, wiser spendings are on the anvil.
BFSI brands are giving a major impetus to their strategies with attractive offers and sops that will get the consumer to buy into their products. Private lender Kotak Mahindra Bank’s limited festive offer of reduced home loan interest rates are a case in point. There is a rise in demand as there is a greater interest in buying larger and comfortable home spaces, as work and education have both shifted to home. Strong rallies are being seen in the equity markets, which will perhaps get the wise and wary to look at mutual funds and SIPs especially, for making the rupee work harder for them.
The COVID-19 pandemic brought a major shift in how the insurance sector was viewed in India. It became deemed as an ‘essential commodity’ as many veered towards term life insurance plans – its simplicity and affordability led to its rising popularity. Consumers are viewing financial products that give them customised and exclusive solutions, with greater interest. More and more young people are buying into brands, now with the use of digitisation in terms of modes of transactions, redemptions, renewals, etc. The pandemic set us on the path of second income and that is here to stay. This festive season will see a major push by BFSI brands and experts are commenting that apart from consumer durables, telecom, FMCG, auto and e-commerce, the BFSI segment will drive the growth in spends this year.
Though there is a speculation about the third wave, the overall public sentiments are much better than the last year and the ADEX looks like touching the pre-COVID-19 era, what with Indian players bringing us cheer during the Olympics and Paralympics and with the IPL and the T20 World Cup Cricket coinciding with the festive season. Digital ad spends have shown consistent growth spends over the past years and the trend will continue with TV dominating the space and digital inching close behind. New categories like fintech, edutech, health tech, gaming, digital wallet payments, neo banks, etc., all are increasingly looking at digital spends and there is a much-anticipated growth in this segment.
Yes, the sentiments are high, but we will not see aimless splurge anymore by consumers. The crisis has changed the consumer psyche and communication that is not rooted in overt consumerism will be more attractive to us. So, on a very positive note, let’s herald new beginnings with a fresh sense of discernment that is palpable.