Around Rs 4.25 lakh crore Trade expected this Diwali, China may lose Rs 1.25 lakh crore Business

As India gears up for Diwali, traders across the country are anticipating a massive surge in business, aiming for a collective turnover of approximately Rs 4.25 lakh crore during this festive season. This projection, shared by the Confederation of All India Traders (CAIT), reflects the optimism among local businesses hoping to capitalize on the holiday shopping rush. Delhi alone is expected to see an impressive Rs 75,000 crore in trade, underscoring the significant economic activity in major urban hubs.

Traders across India also expected robust sales on Dhanteras, with retail trade projected to reach approximately Rs 50,000 crore nationwide, as reported by the Confederation of All India Traders (CAIT). This year, the theme “Vocal for Local” is driving consumer preferences, with a notable shift towards Indian-made products and a significant drop in demand for Chinese goods traditionally sold during Diwali.

CAIT estimates that this strong preference for local goods could lead to a loss of around Rs 1.25 lakh crore in business for China this season, underscoring the growing support for Indian-made products during the festive season.

Diwali Trade in 2023

According to the Confederation of All India Traders (CAIT), the 2023 Diwali season generated ₹3.75 lakh crore in economic activity. This was a record trade for the festive season. You can see in the chart below how much money was spent on which category.

In the first week of festive sales, e-commerce marketplaces in India recorded sales of $6.5 billion, nearly ₹55,000 crore—a 26% increase compared to last year. And the momentum isn’t slowing down. Projections indicate that total festive sales for 2024 could reach close to ₹100,000 crore, with some estimates even pushing this figure to ₹120,000 crore!

High Hopes for Record Sales

The festive spirit is not only limited to Delhi; traders in metropolitan areas, Tier 2 and Tier 3 cities, and even small towns and villages are setting up to meet the high demand expected this Diwali. Many of these markets have already seen increased sales from previous festivals like Rakshabandhan, Navratri, and Karva Chauth, which have laid the foundation for this Diwali’s optimistic targets. The record-breaking sales expectations stem from an anticipated rise in demand for popular Diwali purchases, such as:

• Electronics and mobile phones
• Jewelry and luxury items
• Ready-made garments and traditional wear
• Home decor, furnishings, and puja materials
• Gifts, sweets, and food items

With these product categories leading the way, traders hope to cater to all aspects of Diwali celebrations, ensuring no segment of the market is left behind.

Discounts and Promotions to Boost Sales

To encourage spending, traders are readying enticing offers like ‘buy one-get one free’ and special Diwali discounts. These promotions are designed to not only drive sales but also counter the competition posed by e-commerce platforms. By offering similar or better deals, physical stores aim to capture a significant share of consumer spending and push the Rs 4.25 lakh crore goal within reach.

Support from Local Authorities

To manage the anticipated crowds, traders have requested additional support from local authorities, including enhanced security and traffic management, particularly in high-traffic markets. This approach ensures that shoppers can enjoy a hassle-free experience, further encouraging spending.

A Strategic Push Against E-commerce

With e-commerce platforms competing fiercely for Diwali shoppers, local traders are stepping up with an immersive shopping experience. Praveen Khandelwal of CAIT highlighted that by creating a vibrant, interactive market environment complete with Diwali decorations and exclusive in-store promotions, physical stores hope to reclaim customer loyalty and reach the ambitious turnover target.

With preparations well underway, traders across India are poised for an exceptionally profitable Diwali season. The Rs 4.25 lakh crore target not only highlights the strength of India’s local markets but also showcases the deep economic impact of Diwali on India’s retail sector.