Consumer Preferences Shifts On Dhanteras
On the occasion of Dhanteras, businesses are getting ready to celebrate the festival of wealth and prosperity. It's that time of the year when companies, big and small, gear up for success and growth.
Shifting Preferences
Dhanteras shopping centred around metals like gold, silver and copper utensils for their auspicious significance. Walk into any store and one will see the shine of gold and silver, creating a festive atmosphere.
However, in changing times, consumer preferences have evolved, said Varun Tangri, CEO and founder at QueueBuster POS.
“While gold and silver still shine, there's a notable surge in smartphone and electronics purchases during Dhanteras, witnessing a 15-20 per cent increase compared to other times of the year,” he said.
According to Tangri, customers tend to allocate 35 per cent more of their budget to high-value items such as gold, jewellery and traditional valuables.
“The influence of Dhanteras on our customers' sales and overall revenue is substantial. Particularly in categories like electronics, mobiles and metallic consumer products, historical data reveals an impressive 25 per cent increase in sales on Dhanteras,” he highlighted
This surge is attributed to the tradition of buying metals and the festive spirit leading up to Diwali which falls a day after.
Tech Traditions
During this festive season, a notable surge in customer interest and purchases of home entertainment and day-to-day household appliances, which include Smart LED TVs, Speakers, Washing Machines and Dishwashers has been observed.
“People view Dhanteras as an auspicious time to invest in new gadgets and electronics, in addition to traditional purchases like gold, silver, gold ornaments, new copper, silver and brass utensils,” said Ajay Singh, Sales Director, Elista.
An increasing number of people opt to buy household items like vehicles, phones, laptops, refrigerators, microwaves and other consumer electronics on Dhanteras, he added.
According to Ravi Saxena, CEO and Founder of Wonderchef, in the utensils segment, customers favor non-stick and stainless-steel cookware, along with festive bakeware during Dhanteras.
"Designs that resonate with the festival’s cultural importance are particularly in demand," he said.
Vehicle Vibes
Dhanteras, being a significant period for the automobile sector, witnesses a surge of 25 per cent in demand, with many individuals choosing this auspicious day for vehicle deliveries, revealed Manideep Katepalli, Co-Founder at BikeWo.
“To align with the tradition of purchasing metals, we've noticed a growing interest in electric two-wheelers, reflecting a positive shift towards sustainable transportation,” he said.
According to Katepalli, Dhanteras marks a pivotal moment for his company's sales as it witnessed about 70 - 80 per cent of sales of the entire month, on this single day.
Furthermore, he observed the intriguing aspect is customers' inclination towards substantial purchases, resulting in 25 per cent growth in overall demand, especially in high-value items like electric two-wheelers.
“What adds intrigue is the shift in customer priorities during Dhanteras. Beyond cost considerations, customers now prioritise better-featured vehicles and quality, emphasising sustainability,” he highlighted.
Supply Chain Strains
While Dhanteras brings opportunities, it also poses hurdles. Amidst the festive fervour, businesses also face their share of challenges during the festive season.
One of the primary challenges for companies encountered during the Dhanteras season revolves around the supply chain readiness and availability of the products.
“Supply chain is a challenge during peak festive seasons,” Madhurima Rungta, Director, HunyHuny.
Furthermore, Katepalli emphasised, “The heightened demand during this period often strains our supply chain, leading to potential supply constraints. Managing inventory, logistics, and funds becomes a top priority for us, further complicated by customers' preference for same-day vehicle delivery without the option of making advance payments.
During this festive season, consumer electronic products are becoming a popular choice among the masses, which leads to a bit of a struggle for retailers.
“One common issue we face is meeting the increased demand, especially for specific consumer electronic products that are considered popular during this time. Supply chain disruptions can also affect timely product availability,” said Singh.
