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The Magic of Festive Loyalty in India – Streets bustling with vibrant colors, homes illuminated with a thousand lamps, and the scent of delicious sweets filling the air—this is the essence of the Indian festive season. A time of grand celebrations, cultural traditions, and togetherness, this period also marks a surge in festive shopping, making it an opportune moment for brands to deepen customer engagement through festive loyalty initiatives.
The months of October and November bring some of the biggest festivals across India, from Navaratri in Gujarat and Durga Puja in West Bengal to Diwali, the festival of lights. During this time, consumer spending peaks as people seek the perfect gifts, latest gadgets, and fashion essentials. Brands that strategically leverage loyalty software to capture long-term customer value beyond just seasonal sales.
But beneath the surface of these dazzling festivities lies a dynamic and ever-evolving market, where consumers are on a quest for the perfect gifts, the latest gadgets, and the most exquisite fashion. This festive period also creates an abundance of opportunities for brands not just to drive higher sales, but also to generate greater visibility and etch a space for themselves in the minds of consumers.
Several popular brands have used this season yearly to kick-start their sales and build a loyal customer base. But before we explore that, let us first examine how Indian consumers shop, especially during the festive season:
Recognizing these shopping habits, leading brands are capitalizing on festive shopping trends through exclusive deals, early access sales, and tailored loyalty program software. Up your loyalty game with Capillary’s robust loyalty software – Loyalty+.
For instance, Amazon and Flipkart rolled out their flagship sales—The Great Indian Festival and The Big Billion Days—granting early access to members of their loyalty programs, Prime and Flipkart+. This strategy not only boosted early engagement but also drove a 60% increase in Flipkart+ memberships compared to last year. Looking to up your customer engagement game? Check out Capillary’s Engage+.
Beyond discounts, brands are integrating loyalty software with payment solutions, such as Pay Later options and bank tie-ups, to offer additional benefits and a seamless checkout experience.
Also Read: Coalition Loyalty in the Retail Sector
But what exactly are people buying this festive season? Let’s have a look:
A festive occasion always calls for dressing up in brand-new clothes and accessories. People buy new clothes for themselves and for other family members to gear up for the celebrations. Whether you are from Tier 1, 2, or 3; this is a pattern common among the entire country during the festivities. According to the Nelson Media India survey, 69% of GenZ customers plan to spend heavily on apparel, clothing, footwear, and accessories.
Keeping this in mind, brands like Myntra and Meesho are offering festive shopping discounts of up to 90% on top fashion labels.
Myntra, the fashion and lifestyle e-commerce company, reported a remarkable 460 million customer visits during its recent Big Fashion Festival, its major annual sales event.
The Indian festive season is a prime time for tech upgrades. Indian consumers eagerly anticipate the festive season as an opportunity to upgrade their gadgets and enjoy the latest features and capabilities.
Exclusive deals and offers on e-commerce platforms make online shopping a preferred mode of purchasing gadgets for consumers. Flipkart revealed that during their Big Billion Day Sale, smartphones in the Rs 20,000+ segment saw a notable increase in demand among both metro and tier 2 audiences.
Prime members purchased more than 75 smartphones per second in the first hour of sale during Prime Early Access. 75% of phones were purchased by customers from Tier 2 and Tier 3 cities.
Amazon customers also shopped for more premium smartwatches in the first 48 hours compared to last year. Ten premium active noise-canceling headphones were bought by customers every minute on the platform.
Adding to this festive season is the Cricket World Cup. The World Cup has aligned with India’s festive season after 36 years and this has resulted in a higher-than-usual purchase of home appliances like speakers and TVs. Home appliances like washing machines, and refrigerators were always one of the most purchased items during the festive season.
Companies like Godrej expect a higher sale (30%) of premium appliances in the category of TV, audio equipment, and other home appliances.
Beauty products, encompassing cosmetics, skincare, and fragrances, experience a surge in demand during the festive season in India. The festive season accounts for a lot of community gatherings creating a demand for beauty products. According to the Nielsen Media survey76 percent of Indian consumers purchased luxury and authentic beauty brands during online festive shopping events.
During Indian festivals, decorating homes is a common tradition that boosts sales for companies in furniture and home decor. Home furnishing comprises almost half of Myntra’s home category, with bedsheets, curtains, and cushion covers, and stands being the major products in the category. This festive season, Myntra’s home category has seen a 50% jump in demand, with people showing a lot of interest in bedsheets, decorative items, cookware etc.
Automobiles are considered to be one of the most expensive items in an Indian household and that’s why several consumers consider waiting for the deals and discounts to open up during the festive season. Not just that, buying expensive things, like cars and bikes at the time of festivities is considered auspicious according to the Indian belief system.
According to FADA, the Navratri period saw a surge in bookings driven by the introduction of new models (particularly SUVs) and attractive consumer offers. Vehicle registrations during Navratri, as a result, soared 18%, an all-time high, surpassing the highest recorded in 2017.
Jewelry, especially gold, and silver has always been at the center of Indian heritage, and its purchase is mostly driven by tradition. According to Indian culture, purchasing gold and silver during Dhanteras, which is celebrated around the time of Diwali, is believed to bring joy and prosperity to the household. This belief results in people stocking up on gold, diamonds, and silver jewelry during the festive season. Understanding the Indian shoppers and their emotions with jewelry, several jewelry retailers, like Tanishq, offer attractive deals and discounts to pull the consumers to their shop.
The upcoming wedding season only adds to the demand for jewelry, with people starting their wedding purchases during this time.
When it comes to jewelry, consumers prefer in-store purchases as they prefer touching and feeling the jewelry and having a close look at the design. This really enhances their purchase decision. Hence, jewelry brands have been focusing on creating a memorable in-store experience for their customers.
While festive discounts drive short-term sales, building long-term customer relationships requires a strategic approach. Investing in loyalty program software allows brands to offer personalized rewards, exclusive experiences, and incentives beyond just price cuts.
The festive season in India presents a golden opportunity for businesses to forge emotional connections with consumers. With the right festive loyalty strategies, brands can ensure that their engagement doesn’t end with the celebrations but continues throughout the year.
Make the most of this season with Capillary Technologies’ loyalty software. Get in touch with us today to elevate your festive shopping experience for customers and maximize long-term brand engagement.
Brands can leverage festive loyalty programs to offer exclusive deals, early access sales, and personalized rewards, fostering long-term customer relationships beyond the Indian festive season.
The festive shopping season sees a surge in purchases across fashion, electronics, home appliances, jewelry, and automobiles, with consumers preferring a mix of online and offline shopping experiences.
Loyalty program software enables brands to track customer behavior, offer targeted promotions, and enhance engagement, leading to increased customer retention and higher sales during the festive season in India.
Leading e-commerce players like Amazon and Flipkart have successfully driven membership growth by offering early access and exclusive discounts through their loyalty software, increasing engagement during the Indian festive season.
Investing in loyalty software helps brands create personalized experiences, improve customer retention, and maximize revenue opportunities, making festive shopping more rewarding for both businesses and consumers.
January 2, 2025 | 4 Min Read
As India is gearing up for its festive shopping, brands have