MAM
Diwali shopping to surge with 70 per cent consumers ready to spend more
Mumbai: New data shows approximately 70 per cent of Indians are ready to spend more this Diwali, representing a marked 35 per cent increase from last year, according to the third festive pulse survey conducted by global advertising technology leader The Trade Desk. The planned increase in consumer spending is led primarily by consumers’ bullish view that their financial situation has improved (53 per cent), and consumers’ eagerness to celebrate a lot more this year (49 per cent).
The new research indicates growing optimism among Indian consumers is slated to drive larger festive sales this year, giving brands an opportunity to build advertising campaigns tailored to consumer interests and preferences as the biggest shopping season of the year approaches.
Skyrocketing optimism spurs consumer spend
The surge in optimism is driving increased consumer spend, with a significant majority expressing an interest in purchasing luxury goods and apparel (84 per cent) and gold (80 per cent). Amongst those who plan to spend more, 68 percent said they are more likely to increase spending on new clothes, 65 per cent on gold and jewellery, 64 per cent on Diwali food items and gifts for family, and 64 per cent on friends and colleagues.
“This year’s Diwali is shaping up to be the most significant shopping season ever. People are gearing to celebrate more, in turn, they plan to spend more,” said The Trade Desk general manager, India Tejinder Gill. “To make the most of this opportunity, marketers should focus on building trust to engage customers with relevant advertising campaigns that reach them at the right place at the right time. The Trade Desk is empowering marketers to make smarter media decisions for the festive season and for the long term, whilst helping them track campaign performance to drive business growth effectively.”
Brands who engage early and consistently will stay top-of-mind
The findings reflect an always-on branding strategy is the key in engaging consumers effectively. When shopping for Diwali, more than half (58 per cent) of Indians consider themselves to be planned shoppers, while almost half (45 per cent) regard brand trust as an important factor in their Diwali shopping decisions.
The research also unveils significantly higher brand loyalty, compared to Diwali shopping last year. Within the top three product categories where consumers demonstrate the strongest loyalty, a notable 74 per cent of consumers will stick to the same brand when purchasing products in health and personal care, which is an increase of 23 per cent compared to last year. While 69 per cent of Indian consumers will do so for consumer electronics, an increase of 30 per cent, and 65 per cent for makeup and fragrances, an increase of 27 per cent from last year.
Indian consumers are least likely to hold strong brand affinity for toys, games, and collectibles (50 per cent), home and living (50 per cent) and travel (47 per cent). Marketers who employ an always-on strategy can help enhance brand affinity by maintaining consistent connections with their audience throughout their entire purchasing journey.
OTT platforms are effective advertising channels
The open internet provides an opportune place for brands to advertise, and over-the-top (OTT) streaming platforms are garnering notable traction. The majority of respondents (61 per cent) express a willingness to research a product online if they like the ads shown on this channel. Furthermore, people aged 25 to 40 years exhibit a larger appetite for ads on OTT platforms, as half of them (51 per cent) reportedly pay attention to ads on the channel. Concurrently, 43 per cent said they direct their attention towards ads on news, websites, and blogs.
Survey Methodology
The survey was conducted online by research firm Milieu amongst a nationally representative sample of 1,000 India adults, fielded in June 2023. All data was weighted by age and gender to reflect the latest Indian population estimates.
Most business owners treat their working capital limit like a safety net. It sits there, attached to their current account, ready to be drawn on whenever cash gets tight. And for routine operations, that arrangement works fine. But there are specific situations where a lump-sum loan disbursed quickly into your account is the smarter financial move. Knowing when to pick one over the other can save you real money and keep your business from getting stuck.
The Fundamental Difference People Overlook
A working capital limit, often structured as an overdraft or a revolving credit facility, gives you access to funds up to a pre-approved ceiling. You draw what you need, pay interest on what you use, and replenish it as receivables come in. It is designed for short-term, recurring needs like paying suppliers or covering payroll gaps.
A term loan disbursed quickly, on the other hand, drops a fixed amount into your account. You repay it in instalments over a set period, with a clear end date. The interest rate is typically fixed or at least predictable. These two products solve different problems, and treating them as interchangeable is where businesses get into trouble.
When Speed and Certainty Matter More Than Flexibility
Here’s a scenario that plays out constantly. A retailer gets an opportunity to buy inventory at a steep discount, but the supplier wants full payment within 48 hours. The retailer’s working capital limit is already partially drawn. The available balance might cover part of the order, but not all of it. Requesting a limit enhancement takes days, sometimes weeks, because the bank reassesses your financials.
An instant business loan solves this cleanly. You apply, get approval quickly, and the full amount lands in your account. You buy the inventory, sell it at full margin, and repay the loan over the next few months. The cost of interest on that loan is far less than the profit you would have lost by passing on the deal.
This pattern repeats across industries. A logistics company needs to repair a critical vehicle immediately. A restaurant has to replace kitchen equipment before the weekend rush. A manufacturer lands a large order but needs raw materials upfront. In each case, the need is urgent, specific, and finite. A revolving facility wasn’t built for these moments.
The Hidden Cost of Over-Relying on Working Capital Limits
There’s a psychological trap with revolving credit. Because it’s always available, business owners tend to lean on it for everything, including expenses that really should be financed separately. When you use your overdraft to fund a one-time capital purchase, you reduce the buffer available for daily operations. Then, when a genuine cash flow gap appears the following week, you’re scrambling.
Worse, many working capital limits come with annual renewal. If your financials have dipped, the bank can reduce your limit or decline renewal altogether. If you’ve been using the facility for purposes it wasn’t designed for, your utilisation patterns can actually work against you during the review.
A distinct term loan keeps your working capital limit clean. Your revolving facility handles day-to-day operations. Your loan handles the one-off expense. This separation makes your balance sheet easier to read and your banking relationship easier to manage.
Interest Rate Math That Favours Term Loans
Working capital limits often carry floating interest rates pegged to the bank’s benchmark. The rate adjusts, and over time, especially when monetary policy tightens, your cost of borrowing can creep up without you noticing because you’re only looking at the small daily interest debit.
A fixed-rate term loan gives you certainty. You know exactly what each instalment will be, which makes cash flow forecasting more accurate. For a specific expense with a known amount and a defined payback period, this predictability matters. You can map the repayment against the revenue that expense is expected to generate.
A working capital loan structured as a revolving facility makes sense when your borrowing needs fluctuate week to week. But when you know exactly how much you need and roughly how long it will take to pay back, a term product is almost always cheaper in total interest cost. The discipline of fixed repayments also prevents the slow balance creep that plagues overdraft users.
When Your Facility Is Maxed and Opportunity Knocks
Perhaps the most compelling case is the simplest one. Your existing limit is fully utilised. Business is good, money is coming in, but right now the account is stretched. A new opportunity appears. You can either let it pass or find additional funding fast.
Waiting for a limit increase is not a strategy when timing matters. Applying for a separate short-term loan, getting approval the same day or the next, and funding the opportunity directly is a concrete action with a measurable return. You are not adding long-term debt to your balance sheet. You are financing a specific transaction that pays for itself.
The smartest business owners don’t treat all credit as the same. They match the product to the need. Revolving facilities handle rhythm. Term loans handle moments. Getting that distinction right is one of the quieter advantages a well-run business holds over its competitors.
