Diwali 2024: Indians likely to spend more than Rs 1.8 lakh cr on traditional gifts, sweets

Diwali gifts: With Diwali, the festival of lights, just around the corner. It is the perfect time to ponder over the ideal gifts for your loved ones. Giving gifts during Diwali is a longstanding tradition that signifies the sharing of happiness and blessings. According to a survey conducted by LocalCircles, the gifting trend is expected to reach its peak this festive season, with urban India estimated to spend approximately Rs 1.85 lakh crore. The options for gifts are vast, ranging from traditional sweets to crockery to chocolates.

The survey revealed that a substantial Rs 1.2 lakh crore has already been spent between September and October, with a final surge anticipated in the last ten days leading up to Diwali.

Gifting continues to be a significant aspect of the festive expenditure, alongside purchases of essential items at the eleventh hour. Community-focused social media platform LocalCircles obtained insights from over 31,000 urban households across 314 districts in India. The survey participants included a diverse mix of individuals, with 46% residing in tier 1 cities, 30% in tier 2 cities, and 24% in smaller towns.

Trends this year

The survey stated that a majority of individuals still favor shopping locally when it comes to purchasing gifts. Of the 15,801 responses collected, 53% mentioned that they prefer to buy gifts in person and deliver them themselves, while 21% choose to order gifts online but still opt for hand-delivery. Only 15% of respondents prefer the convenience of having their online purchases shipped directly to the recipient.

The findings reveal that while traditional in-person shopping remains popular, online shopping is quickly gaining traction as well. When distance becomes a factor, individuals are more likely to look towards online options for their gift-buying needs.

Traditional sweets vs others

The survey found that a majority of respondents prefer traditional gifts, with 53% choosing sweets, bakery products, or chocolates. Additionally, 48% opt for dry fruits, while 27% prefer candles, fragrances, and lamps.

When asked about the types of gifts they consider purchasing, the responses indicated a strong preference for edible and practical items. Specifically, 53% buy traditional sweets, bakery products, or chocolates, 48% choose dry fruits, and 27% select fragrances, candles, and lamps. Furthermore, 18% purchase kitchenware, 16% prefer gourmet foods, and 12% buy home furnishings, trays, crockery, and pots.

53% buy traditional sweets, bakery products, or chocolates
48% opt for dry fruits
27% choose fragrances, candles, and lamps
18% buy kitchenware
16% prefer gourmet foods
12% go for home furnishings
12% buy trays, crockery, and pots

Interestingly, household items like crockery and kitchenware are also gaining popularity, with 1 in 6 respondents stating that they enjoy gifting these practical items.

Conclusion

The 2024 LocalCircles festive spending survey revealed that 70% of urban Indian households plan to do their festive shopping in stores or markets, while only 13% are likely to opt for eCommerce. Interestingly, when it comes to purchasing festive gifts, 36% of consumers surveyed express a preference for online shopping. This suggests a growing trend where individuals who buy gifts for celebrations also lean towards online shopping.

One common scenario driving this shift is when a gift needs to be sent to a family member or friend in a different city. However, feedback from consumer discussions highlights a lack of a comprehensive online platform in India that offers a wide range of merchandise and a seamless gifting experience.