Success in the festival season won’t be dictated by eye-catching deals alone. Instead, the winners will be those who have earned the most valuable currency in today’s marketplace: trust. Authentic products, ethical practices, data security and social responsibility are key factors that influence purchasing decisions.
Brand loyalty, once defined by repeat purchases, has taken on a more delicate meaning. It’s about the emotional connect between consumers and brands. A 2023 Nielsen India survey says 79% of Indian consumers remain loyal to brands they trust. Moreover, 71% of them are willing to pay a premium for products from brands they perceive as trustworthy. During festival seasons, when bulk buying and high-value transactions are common, trust is even more significant. Take Tanishq. With Dussehra and Diwali marking the peak seasons for jewellery purchase, it has positioned itself as a symbol of transparency and integrity, especially concerning gold purity. Their certified gold purity assurances and clear return policies have earned them a loyal consumer base.
The pandemic undeniably altered consumer behaviour, with many now putting health, safety and ethical considerations first when making product selection. Kantar’s recent survey says 67% of Indian consumers place hygiene and safety at the forefront of their shopping experiences, and 58% expect brands to actively engage in socially responsible practices. Companies like Hindustan Unilever (HUL) have communicated the safety and sustainability of their products, leveraging this shift to their advantage. Lifebuoy and Surf Excel have long championed cleanliness, hygiene and sustainability. Their emphasis on product safety and integrity resonates strongly with consumers.
Transparency and ethical sourcing are also critical in building consumer trust. FabIndia, known for its ethically sourced, handcrafted goods, has won the hearts of many with its commitment to sustainable practices. During major festivals, their authenticity ensures a surge in sales, driven by a customer base that values ethical sourcing and fair trade.
RETAIL FAITH
India’s ecommerce boom is probably the fastest growing in the world and the festival season has been a catalyst for the rapid growth of the digital economy. In 2023, the country’s ecommerce market was valued at over $85 billion, with a large portion of it driven by festival sales. Redseer Consultants reports that the 2022 festive season generated over $9.2 billion in online sales, a figure expected to grow substantially this year. However, with the rise of online shopping comes growing concern over data privacy and safety. A PwC survey found that 81% of Indian consumers are concerned about how their personal data is handled during large-scale sales events. Brands that demonstrate transparency in their handling of customer information are far better positioned to build trust. Amazon India is an example. Following its early challenges with data breaches in the US, Amazon has invested heavily in data security, crafting stringent policies to protect customers and secure transactions. The results are evident: during major events like the Great Indian Festival, Amazon outperforms competitors by ensuring a secure shopping experience, which in turn builds and sustains consumer trust.
Trust extends beyond just brand messaging in a world dominated by social media chatter. Consumers today rely heavily on wordof-mouth reviews and authentic online feedback to guide their purchasing decisions. According to BrightLocal’s 2024 survey, 91% of consumers say local reviews influence their overall perceptions of big brands. Nykaa, the beauty retail unicorn, has excelled in harnessing user-generated content, influencer marketing and honest customer reviews to build its reputation for authenticity and transparency. In a price-sensitive market like India, where consumers are known for seeking value, honest pricing is a big trust builder. Deloitte India reports that 84% of consumers would choose a brand they trust over a cheaper alternative.
Retailers that resort to misleading pricing tactics or hidden fees lose credibility very soon. DMart, known for its fair pricing and transparent discount structures, has mastered the art of winning over middle-class shoppers with simple offers like ‘Buy More, Save More’. This straightforward approach builds a level of trust that is difficult to undermine. Another vital aspect of trust is customer service, especially during the festival season when bulk buying and gifting are common. Brands that offer seamless return policies and responsive customer support will win consumer loyalty.
According to Zendesk’s 2023 report, 75% of consumers are more likely to return to a brand that offers excellent customer service, while 68% would stop buying from brands with poor service. Flipkart has built its festive strategy around providing exceptional customer service. During the Big Billion Days, its hassle-free return policies and efficient customer support are key differentiators.
Lastly, many Indians are increasingly looking at brands with a social conscience, especially during festivals. Campaigns from Surf and Taj Mahal Tea, which have focused on bridging communal divides, resonate during times of celebration. Brands that demonstrate a commitment to societal well-being have a unique opportunity to win over socially conscious buyers. When the festival lights go out, only the brands that shine with trust will keep the cash registers ringing because in this season of celebration, honesty really is the best policy—and the most profitable!