As soon as the festival of Diwali arrives across the country, there is a tremendous increase in the purchase of gifts, especially this time after the reduction in GST by the government, the sale of expensive gifts has increased by 15-20 percent. The number of customers in Gulshan Group’s malls in Noida has increased by 25-30 percent compared to last year. The main reason for this increase is the government making things cheaper and easier for customers to buy by reducing taxes on expensive items, which has given a boost to consumer shopping on the occasion of festivals.
Traditional sweets and dry fruits are an integral part of festive gift packages, with 60 to 70 per cent demand among consumers. Especially sweets made from khoya are being liked the most as gifts. At the same time, personalized gift packages on online platforms and sweets containing a mix of Indian and foreign flavors are also becoming increasingly popular in the market, due to which this segment is expected to grow by 20 to 30 percent compared to last year.
Apart from sweets, chocolates are also emerging as lavish gifts. Brands like Manam Chocolates have seen a tremendous increase in demand for their Indian flavored chocolates. These chocolates have now become a modern alternative to traditional sweets during festivals.
The demand for health-related gifts has also increased significantly this time. There has also been unprecedented growth in sales of health gadgets like smart rings, fitness plans and air purifiers, along with turmeric tea, spice kits and fitness-related subscriptions. It has been reported in the report that a 131 percent increase has been seen in the demand for cars and air purifiers. Fitness app Fitter has also reported growing popularity of its coaching plans and fitness subscriptions.
Thus, this Diwali shoppers are becoming more attracted towards traditional flavors as well as modern technology and health-oriented gifts. This change has brought a new era in the gifting patterns of consumers during festivals, which not only opens the door to better choices for customers but also provides new energy to the industries. This effect of GST cut will not only be limited to the festive season, but it is also likely to bring about a permanent positive change in consumer purchasing trends.