Why retail sales during the Diwali period in India are now often for short period ?

When I started my career in early 90s. Diwali retail sales period used to last for two months ,but now it is for just a short period

Diwali retail sales period in India was longer those days compared to today, and several factors contributed to this extended duration:

1. Traditional Shopping Behavior and Festive Preparation

• Extended Festive Preparation: In the 90s, Diwali shopping was a family-oriented activity, and it was common for families to prepare for the festival over several weeks. This extended preparation period included buying clothes, household items, gifts, and sweets gradually, as people made multiple visits to various stores.
• Spread-out Shopping Needs: Diwali celebrations involved buying different categories of products—new clothes, home decor, electronics, jewelry, and gifts—often at separate times. This phased approach naturally extended the sales period.

3. Limited Advertising and Marketing Campaigns

• Traditional Advertising Channels: In the 1990s, marketing was primarily done through print media, TV ads, and in-store promotions. Campaigns were less aggressive, less targeted, and more spread out, which meant that retailers had to extend their promotional period to capture customer interest over a longer timeframe.

4. Slower Decision-Making Process Among Consumers

• Lack of Urgency: The sense of urgency that we see today was largely absent in the 90s. With fewer “limited-time” offers or flash deals, consumers felt no pressure to buy quickly and would often take their time to compare options, negotiate prices, and make leisurely decisions.
• Cultural Focus on Planning and Preparation: Shopping for Diwali was seen as an event that required planning and patience, with families often making multiple visits to different shops over several weeks. This contrasted with today’s “quick decision” shopping culture driven by immediate deals and offers.

5. Local Retail and Less Competitive Environment

• Dominance of Local Shops: In the 90s, retail was dominated by local shops and markets rather than large chains or malls. These stores typically did not have the resources to run short, high-impact promotional campaigns. Instead, they offered discounts and promotions spread out over a month or more to ensure a steady flow of customers.
• Less Intense Competition: Without the presence of major e-commerce players and retail giants, the competition was less intense. Retailers did not feel the pressure to condense their sales efforts into a brief period. Instead, they focused on maintaining customer relationships over a longer sales window.

6. Longer Supply Chain and Distribution Cycles

• Slower Logistics: In the 90s, supply chains and logistics were not as efficient as they are today. Retailers had to account for longer distribution times to ensure that goods were available for a prolonged sales period. This was necessary to manage inventory and restock products, leading to a stretched sales season.
• Manual Stock Management: Without advanced technology and data analytics, retailers often managed inventory manually, making it difficult to plan for short, high-intensity sales. Extending the sales period allowed them to manage stock levels gradually and avoid shortages.

7. Economic and Consumer Spending Patterns

• Gradual Purchasing Power Growth: In the 90s, disposable income and purchasing power were gradually increasing. Consumers tended to make purchases cautiously, often spreading expenses over a longer period. Retailers adapted to this behavior by offering sales for several weeks to cater to consumers' spending habits.
• Fewer Big-ticket Items: Unlike today, when high-value items like electronics and gadgets are popular during Diwali, the focus in the 90s was on smaller, more traditional purchases like clothes, sweets, and household goods. These items did not have as much urgency associated with purchasing, allowing for a longer, relaxed shopping period.

Now the question is Why it is for shorter period now in India ?

Retail sales during the Diwali period in India are now often concentrated within a shorter, intense window of around 10 days for several reasons:

1. Shift to Online and E-commerce Sales

- Flash Sales and Mega Discounts: Online platforms like Amazon and Flipkart run special Diwali sales that typically last around 7-10 days. These platforms promote limited-time offers and exclusive deals, creating urgency and encouraging a higher volume of purchases in a shorter time frame.

- Early Access and Preview Sales: Many e-commerce platforms offer early access to their sales for premium members, so customers anticipate these short bursts of intense sales activity.

2. Changing Consumer Behavior

- Pre-planned Purchases: Consumers today often plan their Diwali shopping in advance, influenced by marketing and sales promotions from online and offline stores. This planning leads to a concentration of spending within a short window rather than over a prolonged period.

- Focus on Big-ticket Items: Many customers wait for the Diwali period to make big-ticket purchases like electronics, jewelry, and home appliances, which are often promoted heavily for a short time.

3. Increased Competition Among Retailers

- Short-term Promotions: Both online and offline retailers compete fiercely by offering short, impactful promotions. These shorter sales periods help retailers create a sense of urgency and exclusivity, which boosts sales.

- Seasonal Festive Offerings: Many retailers align their inventory and promotional strategies specifically for the Diwali period, making it a peak but brief opportunity to maximize sales.

4. Concentrated Advertising Campaigns

- Targeted Campaigns: Companies spend heavily on advertising during the Diwali season, focusing on a short period to maximize impact. TV, digital, and print campaigns are designed to create a quick surge in consumer interest.

- Brand Tie-ups and Promotions: Brands collaborate with celebrities and influencers to create hype around their products during these 10 days, ensuring maximum visibility and consumer engagement.

5. Supply Chain and Inventory Management

- Optimized Stocking and Logistics: Retailers often concentrate their sales efforts over a short period to manage inventory and supply chain costs efficiently. Extending sales for too long could increase overhead costs and logistic challenges.

- Focus on High-demand Items: By focusing on a shorter sales period, retailers can better anticipate demand for specific products, avoiding excess stock and ensuring timely delivery.

This shorter, concentrated retail sales period is designed to create excitement and drive quick, high-volume sales in a competitive and dynamic market.

Why this is happening in Generation Z and millennials ?

The shorter retail sales period during Diwali is particularly effective among the younger generation due to several cultural, economic, and behavioral factors:

1. Preference for Convenience and Instant Gratification

- E-commerce Dominance: Younger generations prefer the convenience of online shopping, where they can quickly access deals and make purchases. Flash sales and limited-time offers appeal to their desire for instant gratification.

- On-demand Culture: Younger consumers are accustomed to quick services like food delivery and streaming, and they expect a similar, fast-paced experience during festive sales.

2. Influence of Social Media and Digital Marketing

- Social Media Campaigns: Brands use social media platforms heavily to promote their Diwali sales, targeting young consumers with engaging content, influencers, and quick deals. The urgency created through digital campaigns resonates with the younger audience, prompting them to shop during this short window.

- FOMO (Fear of Missing Out): The younger generation is more susceptible to FOMO, especially when influencers and peers showcase Diwali shopping experiences online. Limited-time offers and exclusive deals heighten this effect, pushing them to participate actively within the brief sales period.

3. Budget-conscious Shopping Habits

- Discount Hunting: Younger shoppers are more budget-conscious and seek value for money. Concentrated sales periods offer deep discounts, cashbacks, and bundle deals, aligning with their focus on saving money while shopping for quality items.

- Planned Spending: The younger generation often plans their shopping around these short sales events, using savings or credit to maximize the benefits of festive discounts, making them more likely to purchase within this concentrated time frame.

4. Focus on Technology and Big-ticket Purchases

- Tech-savvy Consumers: Younger consumers are keen on buying tech products like smartphones, laptops, and gadgets during festive sales. These high-demand items are typically highlighted for a limited time to create a buzz and drive quick sales.

- Focus on Aspirational Goods: This generation is more likely to make aspirational purchases during Diwali, such as electronics, fashion, and lifestyle products, which are often promoted heavily during these short bursts.

5. Short Attention Span and Engagement Strategies

- Quick Decision-making: The younger generation has shorter attention spans and prefers quick, impactful experiences. A shorter sales period matches this behavior, encouraging them to make swift purchasing decisions without losing interest.

- Gamification and Interactive Promotions: Many retailers use gamification strategies, limited-edition products, and interactive elements to engage younger shoppers during Diwali sales. These tactics work better within a brief period when excitement and engagement are high.

6. Shifting Traditional Practices

- Modernizing Festive Celebrations: The younger generation tends to modernize traditional celebrations, blending them with contemporary shopping trends. They are more likely to buy fashion-forward items, gadgets, or international brands rather than sticking to conventional festive shopping patterns.

- Focus on Experiences: Many young people prefer spending on experiences like travel, dining, or events during Diwali. As a result, when they do shop for products, they do so within the short period of intense sales to maximize value.

These factors combine to make a shorter sales period not only effective but also essential for brands looking to capture the attention and spending power of the younger generation during the Diwali festival.