Six crackling ways to boost festival sales and smash targets

The festive season in India, running from Raksha Bandhan in August to Christmas in December, is more than just a cultural phenomenon—it’s a golden opportunity for businesses, especially in retail, e-commerce, and the gifting industry. Think of it as the IPL for businesses—high stakes, big rewards. But with the market becoming increasingly cluttered, how can your brand cut through the noise and make the most of this golden opportunity?

The answer lies in implementing smart product and marketing strategies that connect with customers while staying ahead of the competition. Let’s deep dive into some actionable tactics that will help your business shine during the festive season. Also examine a few real-life success stories and cautionary lessons from campaigns that missed the mark.

Timing is everything

A common pitfall businesses fall into is waiting too long to launch their festive campaigns. If you wait until the last minute, you might miss out on the early-bird shoppers who are already on the lookout for deals. According to a 2023 survey, 35% of Indian consumers start their festive shopping early—sometimes even a month before the actual festival. E-commerce platforms have accelerated this trend, with consumers seeking convenience and hunting for early deals.

Top e-commerce giants run their biggest sales at least a month before Diwali, capturing a large market share with pre-sale offers and exclusive bank discounts. In contrast, a niche electronics brand launched late, missing early shoppers and facing stiff competition, leading to a 20% sales shortfall. The learning? Start early to gain visibility and engage customers effectively.

Personalisation is key

During a festive season, Indian consumers are drawn like moths to flame towards gifts that reflect the joy and spirit of the occasion. Personalisation is your secret formula to tap into these emotions. Whether it is customised packaging or limited-edition products, aligning your offerings with the festive theme can create FOMO and drive conversions.

A case in point can be FabIndia’s 2022 Diwali collection. It featured personalised ethnic wear and eco-friendly packaging—resonating with eco-conscious consumers and driving high engagement. Conversely, a couple of years back, a home-grown luxury chocolate brand introduced India's first-ever ruby chocolate during Diwali. But it failed due to unfamiliarity and high price. The lesson? Balance personalisation with customer expectations—blending novelty and familiarity.

Leverage influencer marketing

Influencer marketing has become a game-changer in the digital age. During the festive season, people look for recommendations, and influencers can guide them. In fact, 29% of Indian consumers use social media for product research, making influencers crucial to driving sales.

Remember, the year 2023 Diwali campaign of an Indian e-commerce cosmetics player? It leveraged beauty influencers on Instagram and YouTube to connect with fans and beauty enthusiasts, effectively boosting sales. In contrast, as a tech brand’s mismatched influencers were seen as lacking authenticity, it resulted in reduced conversions. Also, ensure that the influencers you onboard genuinely align with your brand to ensure successful marketing outcomes.

Gift suggestions and curated bundles

The festive season can be overwhelming for shoppers, with so many gift options available. You can ease their decision-making process by offering curated gift bundles. These bundles not only provide value but also increase the average order value by combining multiple products into one offer.

Amazon and Flipkart excel at offering curated bundles and gift guides, personalised to increase conversions. In contrast, gift bundles offered by a clothing brand fell short of expectations due to its unclear value proposition compared to individual items.

Don’t overdo discounts and offers

Discounts are a surefire way to attract customers during the festive season. According to research, 77% of consumers say discounts impact their shopping decisions. However, excessive discounting and offers may lead to consumers delay purchase decisions by waiting for a better deal forever. It may also result in erosion of your brand’s premium image. So, release limited-time offers to create urgency.

Maruti Suzuki's early 2023 festive discounts on Alto and S-Presso boosted sales before the peak season. In contrast, a fashion brand’s extended discounts post-Diwali hurt its premium image and profits.

Don’t forget the post-festive strategy

Many brands focus all their energy on the festive period and forget to continue the relationship with customers afterward. But the work doesn’t stop once the festival ends. Around 12% of festive shoppers return for repeat purchases. A post-festive strategy can help maintain customer engagement and build long-term loyalty.

After Diwali, Amazon India used personalised emails suggesting related products and exclusive discounts, driving repeat purchases and fostering long-term customer relationships with post-festive engagement strategies.

Opportunities ahead

The festive season is a time of great opportunity for businesses. By starting your campaigns early, aligning your products with the festive theme, using influencers effectively, and offering curated gift bundles and discounts, you can maximise your impact. Remember, the key is to be strategic and thoughtful in your approach to stand out in the crowded festive market.

And don’t stop when the festival is over—continue engaging with customers to turn one-time buyers into loyal supporters. With the right strategies, your brand won’t just shine this festive season—it will dazzle.

- Gaurav Bhagat, managing director, Consortium Gifts.