Campaign India Team
Jan 19, 2017

Riding on Republic Day

Indians are not just sold on patriotism. A study by Nielsen reveals that consumers are buying more on national holidays

Riding on Republic Day

It’s traditionally believed that the festive season is the boom time for retailers. But a study by consumer research giant Nielsen indicates that national holidays like India’s Republic Day on 26 January are equally important.

Traditionally, customers in India made bulk purchases and indulged in premium purchases primarily during the festive season. However, Nielsen's analysis over the last couple of years points out that shoppers are not limiting their enthusiasm to festivals alone. They are also making bulk purchases during events created by retailers around national holidays like Republic Day, Labour Day (1 May) and Independence Day (15 August). Nielsen calls these days "Big Events" and says that such events are attracting additional shoppers as well.

The findings for the big events paper are based on the Modern Trade Scantrack data, which is collected across 12 key cities, namely Mumbai, Delhi, Chennai, Bangalore, Pune, Hyderabad, Indore, Kochi, Surat, Vadodara, Vijayawada and Visakhapatnam. Scantrack data for the past two years during Republic Day, Independence Day, Labour Day, Gandhi Jayanti and Diwali was analysed to arrive at the findings. The time period taken into consideration was from mid-2014 to mid-2016.

The study reports that big events represent a big sales surge; therefore, accessing the shopper spend becomes most important as it will bring a jump in the GMV (Gross Market Value) and enable higher customer acquisitions.

Currently, event sales contribute to INR 955 crore in modern trade (for the year ending May 2016), accounting for nearly 17 per cent of total fast-moving consumer goods (FMCG) sales. Nielsen says this is an 8 per cent growth in sales during events as compared to previous year.

However, Republic Day is not the biggest among the Big Events. While festivals and holidays occur throughout the year in India, the second half of the year is widely considered the festive sales period, as it fits in nicely with a lot of celebrated holidays. The retailer created week-long Independence sale event which is designed around the Indian Independence date of 15 August, makes around INR 190 crore in sales compared to an average event sale of INR 142 crore, designating it as the biggest sale event for the year.

Source:
Campaign India

Related Articles

Just Published

Premium
Cannes Lions 2018: ‘You can’t make content that hurts the fans’: Conan O’Brien
Premium
4 hours ago

Cannes Lions 2018: ‘You can’t make content that ...

O'Brien joined basketball legend Shaquille O'Neal and CNN's Chris Cuomo on the dais on day three of the festival

Premium
Cannes Lions 2018: Keith Weed - 'want to drive responsibility in the digital supply chain'
Premium
7 hours ago

Cannes Lions 2018: Keith Weed - 'want to drive ...

The chief marketing and communications officer of Unilever was also joined by three founders of 'sustainable brands' that were acquired by the company

Premium
Cannes Lions 2018: 'It’s time women put our flag in the stands and claim the space we require'
Premium
7 hours ago

Cannes Lions 2018: 'It’s time women put our flag in ...

Abby Wambach (two time Gold Olympic winner), Ibtihaj Muhammad (Bronze winner at Olympics), Casey Wasserman and Jaymee Messler discussed the importance of storytelling, women empowerment, the FIFA World Cup and more...

Premium
Live from Cannes: News and views from day one and two
Premium
8 hours ago

Live from Cannes: News and views from day one and two

Campaign editors Robert Sawatzky and Matthew Miller bring you their editorial assessment of the latest at Cannes 2018.