We are already amidst the festive season and the market sentiments are looking favorable for an explosive comeback in the wake of the pandemic. Having lost almost 2 years to the dreaded virus, consumers are itching to get back to the festive season shopping spree. If the significant surge in the spending of big companies on digital marketing campaigns is anything to go by, the stars seem aligned to bless this season as the one to change the fortunes of the Indian economy. Here is how we will see the events unfold in the coming days.
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Influencer Marketing is the Key to Crack the D2C Route
The direct-to-consumer brands are utilizing the opportunity presented by the influencer marketing strategy by allocating their budgets to digital influences. As per a report by INCA, the influencer marketing industry is poised to grow at a CAGR of 25% for the next decade to a colossal size of Rs 2,200 Crore in 2025.
Companies have already announced that their budget includes around a 10-30% increase in marketing expenses compared to the last year. The most prominent sectors that are touted to experience unprecedented growth and an influx of customers include e-commerce, jewelry, lifestyle, health, autos, consumer electronics, FMCG brands, fashion, personal care, etc.
Additionally, e-commerce giants like Amazon, Flipkart, Fabindia, etc. have already raised the ceiling with their spending on ads this festive season. In addition to that, they are offering humungous sales to encourage and persuade people to buy commodities of all sorts. Flipkart’s ‘Big Billion Days’ and Amazon’s ‘Great Indian Festival’ are two of the key highlights of the year leveraging consumer engagement during the festive time.
Growing Internet Usage in Tier 2 Cities
Social media influencers are the key to penetrating the semi-urban and rural regions which are growing exponentially in internet usage. That is the reason why Tier 2 and Tier 3 cities and towns are the keys to achieving unprecedented scale. The direct-to-consumer reach of these social media stars is exactly what the businesses are looking to leverage with the hope of gaining a huge footfall in this festive season.
Consumers are eager to get back to brick-and-mortar stores after months. However, with the advancements in the digital marketplace in the last couple of years, there will be a healthy balance between offline and online shopping excursions.
Big corporations and small business establishments alike are recognizing the potential that this season entails and leaving no stone unturned in order to capitalize on the massive sales perspective. The season began with Ganesh Chaturthi and will go on till Diwali. The local markets are flooded with customers pointing to a convincing recovery.
Road to Recovery
Last season was widely regarded as revenge shopping where the pent-up demand propelled the revenues of the companies to rise rapidly within a short span of time. However, this year looks more convincing despite the global supply chain issues and rising inflation almost playing spoilsport.
The economy is back on its feet and the reason is the festive season sales and customer engagement at all levels. In the wake of the last two years, businesses and customers have understood the relevance of online and offline services. Therefore, this year could be considered the first massive festive season that will be celebrated like the pre-pandemic era. Digital marketing will be the key to enticing a wider audience into the festive markets.
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