Diwali 2023: How Reduced GST and Changing Consumer Preferences Are Reshaping Festive Gifting Trends

Shoppers are embracing premium puja hampers and spiritual gifts alongside traditional favorites.

New Delhi:

The gift-giving season has arrived, with Diwali presents wrapped in shimmering paper and adorned with bows, bringing extra joy to festive celebrations.

Consumers are exploring diverse gifting options from handcrafted mithai boxes and premium dry fruit assortments to luxury candles, spiritual kits, decorative home accents, and cutting-edge technology. Shoppers are striking a balance between meaningful gifts and budget considerations, particularly benefiting from reduced GST rates.

As is tradition, the Diwali rush creates a familiar scene: congested roads, crowded stores, and last-minute shoppers desperately searching for the perfect gift.

Retailers are thriving alongside enthusiastic consumers, with Gulshan Group reporting significant activity at their Noida mall.

"We've experienced approximately 25-30 percent higher overall footfall in our mall and markets compared to last year. The GST reduction, especially on selected lifestyle and electronic products, has driven a 15-20 percent increase in high-value purchases.

"This Diwali has reinvigorated the festive atmosphere, transforming malls into dynamic community spaces," Yukti Nagpal, director of Gulshan Group, informed PTI.

Homemaker Pooja Sharma is among many embracing the festive excitement.

"I've been purchasing gifts for family and friends throughout the week. The GST reduction made previously unaffordable items accessible within my budget. The overwhelming variety of choices and resulting indecision remains constant," Sharma remarked.

Traditional sweets continue to dominate gift choices, either as standalone presents or complementing other offerings.

At Khoya Mithai, conventional sweets remain the cornerstone of festive hampers, with approximately "60-70 percent" of customers preferring mithai and dry fruits. Meanwhile, Bakingo, an online bakery, has observed a trend toward customized hampers and fusion desserts combining Indian flavors with international influences, projecting "20-30 percent growth" compared to previous year.

Simultaneously, Manam Chocolate's premium artisanal chocolates are gaining popularity as an alternative to traditional sweets, attracting consumers seeking luxurious gifting options.

"Our high-quality, Indian-inspired chocolates have developed a dedicated following that appreciates excellence and selection. This Diwali, this acceptance has resulted in unprecedented demand from both returning and first-time customers who now consider chocolate a meaningful and contemporary alternative for festive gifting," explained Chaitanya Muppala, founder of Manam Chocolate.

Consumers are increasingly selecting premium puja hampers and spiritual gifts—ranging from convenient sacred essentials and idols to high-end personalized presents.

Pujashree, an e-commerce platform specializing in puja necessities, is experiencing strong sales, particularly for its newly introduced 'Diwali Pooja Kit'. Similarly, Ferns N Petals, a prominent gifting brand, has observed increasing demand for premium and personalized offerings.

Avik Kumar, chief marketing Officer at FNP, noted that personalized gifts—including monogrammed boxes, engraved keepsakes, and customized hampers—have increased by "nearly 25 percent".

"Overall, we're experiencing double-digit growth across categories driven by a powerful combination of personalization, premiumization, and purposeful gifting alongside GST benefits that characterize modern Diwali celebrations," he added.

Health-focused gifts are also trending this Diwali season.

While immunity-enhancing options such as dry fruit assortments, turmeric teas, and spice collections remain popular, fitness subscriptions, coaching programs, and health gadgets are experiencing increased interest.

Electronics and home appliances manufacturer Sharp India has observed a "131 percent increase" in demand for compact, health-oriented products like car air purifiers, while fitness app FITTR reports growing interest in coaching subscriptions, smart rings, and fitness plans.

"We've noticed families and friends moving beyond traditional sweets and appliances, instead choosing enduring gifts. A fitness plan, coaching subscription, HART ring, or even a consultation to begin a healthier lifestyle. For many, this represents more than weight management or exercise—it's about supporting a loved one's journey and demonstrating investment in their long-term wellbeing," explained Jitendra Chouksey, founder of FITTR.

The electronics category is experiencing exceptional demand, largely attributed to the GST reduction from 28 percent to 18 percent. Products including smart projectors, portable monitors, and digital photo frames have become favored gifts, with XElectron Technologies reporting doubled overall sales, including notable growth in orders from Tier-3 cities.

Mimoh Jain, vice-president at Sharp India Appliances, also acknowledged increased home appliance sales.

"Compared to last year, air purifier sales have increased by approximately 130 percent, refrigerator sales have grown by over 240 percent, washing machine sales have more than doubled, and dehumidifier sales have risen by 117 percent," he elaborated.

Alcohol brands are also celebrating the festive season, as many consumers shift from traditional gifts toward premium spirits to enhance celebrations. Leading breweries and distilleries, including Radico Khaitan and Globus Spirits, report strong demand and robust sales, having launched new variants and festive packages for the season. Herbal liqueur Jagermeister also introduced a 'Retro Edition' collector's bottle for the occasion.

"This Diwali, we've observed a significant increase, nearly 30 percent, in demand for our luxury spirits. Today's festive consumer prioritizes experiences over transactions, and gifting high-quality spirits has become both sophisticated and warm. Limited-edition blends, artisanal gins, and craft whiskies with custom packaging dominate the premium market, alongside curated cocktail kits and festive special editions," stated PS Gill, CEO consumer division at Globus Spirits Ltd.