“Exploring how luxury brands can leverage India’s biggest festival for brand growth and consumer engagement”

Introduction

As Diwali approaches, the vibrant and bustling streets of India fill with lights, colors, and excitement. Families prepare to celebrate the biggest festival of the year with loved ones, while businesses brace for the surge in consumer demand. For global luxury brands, Diwali represents one of the most significant opportunities of the year. This festive season is viewed as an especially auspicious time for purchasing jewelry, wearing elegant clothing, visiting family and friends, and exchanging gifts. Much like Christmas in the Western world, Diwali is a time when people indulge in festive shopping, splurge on high-end gifts, and invest in long-term assets, such as gold and jewelry—which alone accounts for 20% of annual sales during this period. With retail spaces and shopping malls packed with crowds and e-commerce witnessing a major boom, Diwali offers brands a unique window to connect with consumers through culturally resonant products and campaigns.

Diwali and Christmas: A Parallel Festive Season

Just as the streets of Paris are filled with lights and shoppers during the Christmas holidays, India during Diwali bursts with the scent of fireworks, the sweetness of traditional treats, and bustling commercial spaces where people gather to buy gifts for loved ones.

Drawing these parallels provides a clearer perspective for global luxury brands on how to approach the Indian market during Diwali. Like Christmas, Diwali is a time for extravagant gifting, exclusive holiday collections, and festive marketing campaigns that bring families together and emphasize luxury purchases. Western luxury brands often launch Christmas-specific collections, from high-end watches to designer handbags, often featuring well-known celebrities in their marketing. The Diwali season in India offers a similar opportunity, but with added cultural depth: the deeply rooted tradition of investing in gold and jewelry, making Diwali a particularly lucrative period for jewelry brands. For global brands, aligning their strategies with the festive traditions of Indian consumers during Diwali can open substantial opportunities. By adapting to the unique cultural elements of Diwali, brands can forge meaningful connections and potentially see significant returns in this dynamic and growing market.

Fusing Elegance and Heritage: Luxury Brands Embrace Indian Festivals

Global luxury brands have already started recognizing the potential of the Indian market during festivals like Diwali, creating a harmonious blend of modern luxury and deep-rooted traditions. One example is the recent fashion collaboration where actress Sonakshi Sinha adorned a Bvlgari sautoir necklace for Karwa Chauth, another significant Indian festival. By associating with local celebrities and influencers during these festive periods, luxury brands can create aspirational moments for Indian consumers.

In the luxury jewelry space, brands like Cartier, Bvlgari, and Tiffany & Co. have been gradually expanding their footprint in India by aligning their campaigns with key cultural events like Diwali. Limited-edition collections designed exclusively for Indian festivals help foster a deeper connection with the market. Similarly, high-fashion brands such as Louis Vuitton and Gucci have embraced the festive fervor with India-specific campaigns, blending their international appeal with local sentiments.

Some Statistics on Diwali, According to Statista Data in 2022:

• 20% of annual gold sales occur during Diwali.
• Over one billion people celebrate Diwali.
• Diwali world record with 606,569 diyas (oil lamps) lit simultaneously in the state of Uttar Pradesh, India.
• Estimated spending of 9 billion U.S. dollars.
• 50 million online shoppers expected in Tier 2 and smaller cities, compared to about 25 million in Tier 1 cities. (There are more online shoppers in small cities.)

Challenges for Global Luxury Brands

1. Price Sensitivity : One of the major challenges is price sensitivity. While there is a growing affluent class in India, consumers still seek value, especially during festivals when traditional purchases like gold are viewed as investments. This necessitates that luxury brands offer products that not only resonate with India’s cultural traditions but also provide perceived long-term value.
2. Traditional Clothing: Another challenge is that many Indians wear traditional clothing during Diwali celebrations. While this creates an opportunity for luxury brands in ethnic fashion, it also means that Western luxury brands may need to adjust their offerings and marketing strategies to align with traditional attire and the cultural significance of the festival.
3. Limited Retail Space in Smaller Cities: A significant challenge is the scarcity of luxury retail space in smaller cities. While urban areas like Mumbai and Delhi see a growing number of luxury boutiques, many Tier 2 and Tier 3 cities lack dedicated luxury retail outlets, limiting brands’ ability to engage with a broader consumer base.

Conclusion

Diwali presents global luxury brands with a golden opportunity to expand their presence in India’s rapidly growing market. By combining cultural understanding, strategic collaborations, and innovative product offerings, brands can align their sales efforts with the festive spirit of Diwali. As India continues to emerge as a significant consumer market, brands that embrace Diwali as a time for renewal, indulgence, and gifting are likely to find success. Recognizing the emotional and cultural significance of this festival allows global brands to tap into India’s vast consumer base, much like their strategies for Christmas in the West. The pertinent question for global luxury brands as Diwali approaches is not whether to engage, but how.

Recommendations

Culturally Relevant Marketing Campaigns

• Emphasize Local Traditions: Develop marketing campaigns that resonate with the cultural significance of Diwali. Highlight themes of gifting, renewal, and family togetherness to create emotional connections with consumers.
• Use Local Influencers: Collaborate with Indian celebrities and influencers who embody the spirit of Diwali. Their association can lend authenticity to the brand’s message and enhance relatability among local consumers.

Exclusive Limited-Edition Collections

• Design Festival-Specific Products: Create limited-edition collections that reflect traditional Indian aesthetics and craftsmanship. This could include jewelry that incorporates traditional motifs or fashion pieces that merge modern luxury with ethnic styles.
• Highlight Craftsmanship: Emphasize the artisanal craftsmanship involved in creating these exclusive pieces. Share stories about the artisans and the materials used to engage consumers on a deeper level.

Leverage E-Commerce Platforms

• Invest in Online Presence: Given the growing appetite for luxury products online, enhance the e-commerce experience by optimizing websites for mobile devices and providing a seamless shopping experience.
• Diwali-Themed Promotions: Utilize online platforms like Flipkart and Amazon to launch Diwali-themed sales and promotions, increasing visibility and accessibility for consumers in both urban and smaller cities.

Tailored Product Offerings

• Adapt to Local Fashion Norms: Recognize that traditional clothing is popular during Diwali and tailor product offerings accordingly. Introduce accessories that complement traditional attire, such as statement jewelry and designer handbags that align with ethnic wear.
• Diverse Price Points: Consider introducing a range of products at various price points to cater to different segments of the market, from affluent consumers to those seeking aspirational luxury.

Create Experiential Marketing Opportunities

• Pop-Up Stores and Events: Host pop-up stores or exclusive events during Diwali in key cities to engage with consumers directly. These experiential marketing opportunities allow brands to showcase their offerings in a festive environment.
• Virtual Experiences: For wider reach, consider virtual events that allow consumers to engage with the brand, such as online styling sessions or interactive showcases of limited-edition collections.

Post-Purchase Engagement

• Follow-Up and Feedback: After the Diwali season, follow up with customers to gather feedback and foster long-term relationships. Engage them with exclusive offers for future purchases or invites to VIP events.
• Build Community: Create online communities where consumers can share their experiences, style tips, and brand interactions, enhancing customer loyalty and brand affinity.

By implementing these recommendations, global luxury brands can effectively navigate the complexities of the Indian market during Diwali, tapping into the festival’s cultural significance and maximizing their impact on local consumers.

Contributors

Bhartiya Paris Club https://bhartiyaparisclub.com/

Anish Kumar Singh

Founder, Bhartiya Paris Club

Email: contact@bhartiyaparisclub.fr

Phone: (+33) 760775628

Jatin Kohli

Consultant Expert : Luxury

Email: jatin.kohli@essec.edu

Phone: (+33) 780778913