Festive demand 2025 stays strong post-Diwali as weddings surge, tax cuts lift spending and winter boosts sales
Data from discretionary goods brands such as Titan, Raymond Lifestyle and Kalyan Jewellers, along with Lifestyle International, LG Electronics, AWL Agri Business and Haier, show that overall demand in the four-week period after Diwali increased by 10-20% annually. Rising disposable cash due to cuts in GST and standard income tax rates, an earlier start to winter and a stronger wedding business are supporting post-Diwali demand, senior executives said. “There is absolutely no lull in demand post-Diwali this year,” Sanjay Chitkara, chief sales officer, LG Electronics India, told ET. The country’s largest white goods and television maker, which raised funds in one of the biggest initial share sales of recent times, continues to produce in double shifts at its factories with an 85% utilization rate, unlike the production lull traditionally seen after Diwali.
“Overall affordability has increased following the reduction in GST rates. Sales and wedding season outlook are very strong in the third and fourth quarters,” he said. “Many summer weddings in the North have been postponed until winter due to geopolitical border tensions.”
Marriage Season in Full Power
“This has now increased the demand during the wedding season,” said Chitkara. Haier India president Satish NS said business has increased by 10-15% post Diwali and demand for wedding-related purchases has increased at the centre. In major direct and indirect tax reforms, the Center has effectively waived personal income tax below Rs 12 lakh of annual income for salaried people and income subject to standard tax rates and moved both the number of brackets and items to lower brackets from September 22, reducing GST on nearly 99% of consumption items.
Direct tax deductions on income up to Rs 12 lakh are not available for capital gains, both long-term and short-term, and other investment income, which does not affect standard tax rates. The monsoon has been normal this year too, likely boosting farm gate incomes amid the lowest consumer inflation on record. Lifestyle International CEO Devaranjan Iyer said that sales did not drop after Diwali as there were 12-14 wedding dates in this quarter. “Usually we see a huge demand spike during Diwali and then it declines, but this year it is significantly higher. India is shopping during weddings,” he said. Major listed jewelers such as Titan-owned Tanishq and Kalyan Jewelers said wedding demand has driven sustainable sales growth similar to the festive season, driven by a 3-6% moderation in gold prices post-Diwali. Ajoy Chawla, managing director of Titan’s jewelery division, told analysts that even in the 10 days since the end of the festive season, sales growth continues to be in line with pre-Diwali. This means the growth rate through December will be better than the first half of the financial year.
Ramesh Kalyanaraman, managing director of Kalyan Jewellers, said that the demand after Diwali remained at the same level as before Diwali, and this was also contributed greatly by the decline in gold prices. Angshu Mallick, managing director of AWL Agri Business, India’s largest packaged edible oil company, said November demand was better than October as sales of large packaged edible oil, basmati rice, sugar and Maida increased. He said business is up double digits compared to both last year and October. “The trade was not replenishing the edible oil inventory as they anticipated that prices might drop. But the increase in demand has now led to the pipeline being refilled,” Mallick said.
Winters and Weddings
Even small towns show better demand in categories like clothing compared to the festive season. Lalit Agarwal, managing director of esteemed fashion retail chain V-Mart Retail, said Diwali sees more sales of summer-related and essential products, which reduces the average selling price. However, the early start of Diwali and the cold effect increased the sales of winter series. “We expect November to be better than October. Overall, Diwali was good, not very good as per our expectation. We believe it should be a better period for us after Diwali,” Agarwal said.
Brands are already tracking banquet and hall bookings to reflect the outlook for wedding demand, and some, like Vedant Fashions, have also started tracking government-released data. According to Vedant, India hosts approximately 10 million weddings a year. Raymond president (corporate advertising) SL Pokharna told analysts that all major wedding halls were fully booked by the end of May, except for the period from December 15 to January 14. Fabric bookings from other retailers were also strong, the company said.
“Earlier, we were forcing dealers to come, but now they are coming voluntarily and requesting to advance deliveries and take materials from stock. So we are seeing good bookings and good business response,” said Pokharna. While GST on clothing priced above Rs 2,500 has increased from 12% to 18%, which is where the wedding portfolio is usually concentrated, the industry does not expect any impact on sales. Ashish Dikshit, managing director, Aditya Birla Fashion and Retail, recently told analysts that although the GST on ethnic and wedding wear will increase at the higher end, there will be no “significant shift” as the consumer is unlikely to switch to a value option where they cannot afford such a product.
