How SMEs Can Boost B2B Sales During Diwali 2024?

Diwali is not just a festival of lights, but a golden opportunity for SMEs to accelerate B2B sales. This year, over 5 crore items are anticipated to be purchased for gifting purposes alone.

The festival season in India is traditionally a peak time for businesses across sectors, and with Diwali 2024 expected to bring a 10-15% increase in corporate spending, SMEs can capitalize on this window with the right strategies.

Thank you for subscribing to Business Growth Blueprint for SMEs! This week, we dive deep into actionable strategies, examples, and data-driven insights that can help Indian SMEs make the most of Diwali 2024 and significantly boost their B2B sales.

With 36% of urban shoppers ready to spend more than previous years, the potential for B2B sales is immense.

Rediffusion indicates that 36.18% of people plan to raise their Diwali spending this year compared to last year. New clothes, garments, and accessories top the list of desired items, followed by personal gifts, home décor, electronics and jewelry.

Companies that strategically position themselves can reap significant rewards.

1. Leverage Seasonal Marketing to Build Brand Visibility

In the weeks leading up to Diwali, businesses typically ramp up their marketing efforts, and SMEs should not be left behind. A smart seasonal marketing campaign, especially on digital platforms like LinkedIn, Facebook, and Instagram, can increase visibility.

Collaborate with influencers or other businesses to cross-promote products. Create engaging content that highlights your offerings and encourages sharing among followers.

Example: Last Diwali, a Delhi-based packaging SME ran a targeted LinkedIn ad campaign aimed at procurement heads in the FMCG sector, resulting in a 25% increase in inquiries and closing deals worth ₹30 lakh . Use strategic marketing with personalized offers, emphasizing limited-time deals to create urgency.

2. Offer Custom Corporate Gifting Solutions

Corporate gifting is a key Diwali tradition, with businesses allocating budgets for gifts to employees, clients, and partners.

According to a report by Trade India, the corporate gifting market is expected to cross ₹25,000 crore in 2024 . SMEs can tap into this marking customized gift hampers, branded merchandise, or innovative eco-friendly gifts.

Example: An Ahmedabad-based printing and packaging SME secured a large contract from a pharmaceuticals company by offering personalized, eco-friendly packaging for their Diwali hampers. This not only increased their B2B sales but also established a long-term partnership .

3. Build Strategic Alliances

Diwali is the perfect time to foster partnerships and collaborations with complementary businesses. Collaborating on bundled offers or co-branded products can widen your reach and tap into a new customer base.

Retaining existing customers is often more cost-effective than acquiring new ones. Engaging with your current clientele can lead to repeat business during the festive season.

Reach out with personalized messages or exclusive offers for loyal customers. Consider sending out festive greetings along with special discounts tailored to their previous purchases.

Example: A manufacturing SME collaborated with a logistics company last Diwali to offer a comprehensive "ready-to-ship" solution for corporate gifting clients. This partnership led to a 40% increase in order volume during the festive season.

Such collaborations allow SMEs to provide holism while sharing marketing and operational costs.

4. Enhance B2B E-Commerce Capabilities

With B2B e-commerce platforms seeing tremendous growth, SMEs should ensure their online sales channels are optimized for the Diwali rush.

According to a report by KPMG, India's B2B e-commerce market is expected to grow by $60 billion by 2025, driven by increased digital adoption among small businesses .

With over 57% of consumers preferring online shopping, ensuring your website is mobile-friendly is critical.

Offer special Diwali bundles tailored for businesses. Bundling products can encourage larger purchases and help move inventory that may not sell as quickly.

Make sure your website or marketplace listings are updated to Diwali-specific offerings, bulk discounts, and special services like priority shipping. Consider offering a seamless online ordering experience with instant chat support for B2B buyers who may require immediate attention.

Example: A stationery company in Bengaluru successfully increased B2B sales by 40% during Diwali last year by offering customized gift hampers for corporate clients.

5. Offer Early-Bird Discounts and Loyalty Programs

To capture the early Diwali shoppers, offering early-bird discounts can incentivize businesses to place orders in advance.

According to a RedSeer report, 30% of Diwali B2B orders are finalized by mid-October. Launching a loyalty program that rewards bulk orders with attractive or future perks is another effective strategy to encourage repeat business.

Example: A Mumbai-based electronics SME introduced a Diwali loyalty program, offering 10% off on bulk orders placed before October 15. The initiative helped them secure advance orders worth ₹50 lakh, ensuring smooth operations without the last-minute rush.

6. Utilize Data and Analytics to Target the Right Clients

Use data to understand client behavior, identify high-value clients, and personalize your offers. Diwali presents an excellent opportunity to re-engage with dormant clients by offering tailor-made solutions based on past orders.

Example: A Pune-based IT solutions firm used CRM data to identify clients who hadn't purchased in the last six months. By sending personalized Diwali offers highlighting previous purchases, they reactivated 20% of inactive accounts .

7. Highlight Sustainability

A substantial 80.70% of fashion buyers prefer eco-friendly products, and 81.13% of electronics shoppers share this sentiment. Today's consumers are increasingly conscious of sustainability and prefer eco-friendly products.

Promote any sustainable practices or products you offer during Diwali. Highlighting eco-friendly packaging or ethically sourced materials can resonate well with environmentally conscious businesses.

Example: A home décor company that introduced biodegradable decorations saw a surge in B2B orders from corporates looking to enhance their sustainability credentials during the festive season.

8. Focus on Customer Experience

A seamless customer experience can set you apart from competitors and encourage repeat business.

Ensure excellent customer service through all channels—be it email, phone, or social media. Offer easy returns and fast shipping options to enhance satisfaction.

Example: An online gift shop improved its customer service response time during Diwali by implementing AI chatbots, leading to a 35% increase in customer satisfaction ratings.

9. Capitalize on Government Schemes for MSMEs

For Diwali 2024, the government is introducing various schemes aimed at providing financial assistance to citizens, such as the Diwali bonus program specifically designed to help women shop for the festival without financial worries.

Additionally, there are government initiatives proposed in the budget, including schemes like Viksit Bharat by 2047 and support for solar energy through rooftop solar projects.

You can check out the government-backed schemes launched to support MSMEs and SMEs in scaling operations. Programs like the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) can help SMEs secure the necessary funds for inventory buildup and marketing .

Tip: SMEs should explore options such as SIDBI's SMILE scheme, which offers loans to MSM interest rates, especially during the festive period when demand surges .

Final Thoughts

With the right mix of marketing, partnerships, and leveraging government support, SMEs tremendous B2B sales potential this Diwali. By staying ahead of the curve and implementing the strategies outlined here, businesses can drive growth and establish themselves as key players in the B2B ecosystem.

Want to take your Diwali B2B sales strategy to the next level?

Reach out to StratefiX Consulting for personalized solutions and industry-specific insights that can help your business thrive in the festive season and beyond.

As we gear up for Diwali 2024, it’s essential for SMEs to recognize the unique opportunities this festival presents for boosting B2B sales. We aim to help businesses drive substantial growth during this festive season.

Remember the words of Mahatma Gandhi:

“The best way to find yourself is to lose yourself in the service of others.”

By serving your customers well this Diwali, you not only enhance your brand’s reputation but also contribute positively to the festive spirit that unites us all.

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Chirag Patel - Co-founder, StratefiX Consulting