Onam, a major festival in Kerala, marks the beginning of the Indian festival season. It kicks off a series of celebrations that continue with Ganesh Chaturthi, Navratri, Dussehra, and culminates in Diwali. For marketers, Onam is crucial because the early gains during this festival often set the tone for performance throughout the rest of the festive season.
The Economic Importance of Onam
In Kerala, Onam is the most significant shopping period of the year. The state sees a higher per capita expenditure during this festival compared to many other regions in India. Additionally, Kerala’s affluent diaspora, spread across the Gulf, North America, Europe, and Australia, contributes to this spending surge. Kerala is known for receiving 19% of India’s total inward remittances, much of which flows in during Onam. This inflow boosts local markets and drives increased advertising spending.
Marketing Strategies for Onam
Brands are increasingly recognizing the importance of tailoring their marketing strategies to resonate with the Malayalee audience. For example:
- Ajio’s Digital Campaign: Last year, Ajio’s campaign successfully engaged younger audiences with a targeted digital approach.
- Swiggy’s Onam Sadya Campaign: This year, Swiggy created a campaign highlighting the traditional Onam Sadya, appealing directly to the Malayalee sentiment.
National brands are now taking note, using Onam as a gateway to the Southern Indian market. The festival allows them to gauge performance and make adjustments before moving on to other festivals.
Impact of Onam on Kerala’s Economy
Despite recent challenges, such as the Wayanad Landslide, Kerala’s economy is recovering. Analysts predict a 10-15% increase in advertising spending over 2023. The Onam season is expected to see a significant uptick in brand activity, with many businesses using this period to boost their visibility and sales.
Local Initiatives and Challenges
- Flower Cultivation: Local Self Governing Departments in Thiruvananthapuram are enhancing local flower production for Onam. They’ve increased the cultivation area to meet demand and keep prices stable. This year Flowers are locally grown and sourced.
- Government Support: Chief Minister Pinarayi Vijayan has highlighted the state’s efforts to combat inflation during Onam, offering subsidised goods at fairs to protect consumers from rising prices.
- Market Trends: Local traders face competition from online platforms and unpredictable weather. Despite this, the Onam shopping period is crucial, with significant spending expected in textiles, electronics, and other sectors.
Onam’s impact on the Kerala and Indian markets is profound. It is a key economic event. By understanding and leveraging Onam’s significance, brands enhanced their market presence and drive significant consumer engagement.
