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Diwali, the five-day festival of lights that falls this year in November, is the most important celebration of the Hindu calendar. Luxury players with an eye on the growing number of high-spending customers in India, as well as the diaspora, are cottoning on to Diwali’s significance.
This season, brands are ramping up their Diwali capsule collections, gifting options and events, to capitalise on the celebrations. However, they should look beyond the obvious special edition product releases and consider how to customise the experience, experts say.
Diwali takes its name from the Sanskrit word deepavali, meaning “row of lights”. It extends over a five-day period, usually falling in late October or early November. This year, it takes place on 10-15 November, with the main Diwali day falling on 12 November. For those in the retail sector, it starts earlier.
“The festive shopping season in India essentially commences in early October, with festivities extending over several days and encompassing numerous celebrations with friends and colleagues,” says Srimoyi Bhattacharya, the founder of India-based luxury and lifestyle consultancy firm Peepul Advisory. For many Indian companies, Diwali marks the commencement of the new financial year.
While there are various narratives surrounding Diwali, they all share a common theme: the triumph of good over evil, coupled with an emphasis on abundance and good fortune. The rituals of lighting candles, eating of sweets and dressing-up are integral to the festivities. “International brands are now beginning to recognise the significance of Diwali,” says Bhattacharya.
When it comes to clothes, saris, lehengas and salwar kurtas are traditional choices for Diwali, but the approach to dressing for the festive season is changing. For international brands, this trend — which is also happening in bridal dressing — brings opportunities. “Customers are gradually moving away from traditional approaches to the festive season and embracing a more modern outlook. We’ve noticed that our clients are style-forward and experimental, pairing international brands with their traditional outfits, blending the best of both worlds,” says Cecilia Morelli Parikh, co-founder of Le Mill, a leading luxury concept store in Mumbai. She adds, “Our customers are constantly adding one key piece like a standout blouse or jacket, that ties together with a more traditional piece they own.”
Is limited edition too limiting?
This year, Jimmy Choo unveiled a capsule collection for Diwali, promoted via a campaign featuring Indian film star Ananya Pandey. This the first time the brand has launched a Diwali capsule globally, and the first time it has engaged with an Indian celebrity for a large-scale campaign. Swarovski also partnered with Pandey for its Diwali campaign, after partnering with Bollywood actor Bhumi Pednekar in 2020.
Gucci has released a limited edition of the Horsebit 1955 handbag in gold (a colour traditionally associated with Diwali), which will be sold across its stores in India. A gold anaconda leather version of its Padlock Bag will be available exclusively at the brand’s soon-to-open flagship store in Mumbai’s new luxury mall, Jio World Plaza. Coach will unveil a version of its ‘Wear your Shine’ campaign — which promotes its Shine collection of metallic bags, clothes and shoes — with Diwali messaging, and will be hosting an event in Mumbai.
“Launching limited edition products for Diwali is an incredibly effective strategy. I’ve witnessed firsthand how successful these initiatives can be,” says South Asian influencer Masoom Minawala Mehta, who has a following of more than 1.3 million and splits her time between Europe, the United Arab Emirates and India.
Last year, she collaborated with Estée Lauder India to launch a limited-edition kit for Diwali that included some of the brand’s iconic products and a festive clutch. “During Diwali, there’s a cultural tradition of buying new things, symbolising prosperity and good fortune. When brands introduce limited edition products, it adds a touch of exclusivity and excitement to the festive season, offering consumers a special treat,” Minawala Mehta adds.
Le Mill’s Parikh, however, feels that this approach is too limited and suggests that international brands should be more attuned to the Indian calendar. She recommends curating collections year-round to align with different festivities and seasons, not just producing one-off products for Diwali – for example, the peak wedding season, which runs from October to December, and Christmas, which some luxury brands may not realise is celebrated eagerly in India.
She adds that some brands have a way to go to engage shoppers. “While major brands are increasingly recognising the potential of the Indian luxury market, there have been no standout Diwali campaigns thus far.” She would like to see campaigns that are more global and strike a balance between Eastern and Western sensibilities. Minawala Mehta echoes this, adding she would like to see an international brand collaborate with a smaller Indian brand that actively engages local craftspeople, to develop a whole range of products.
Not just a product
Gifting is an integral part of the Diwali tradition, providing an opportunity for luxury brands to get in front of new customers.
For multi-brand retailer The Collective, 25 per cent of its annual gifting sales are made during Diwali. “We celebrate this with our ‘No Ordinary Gifts’ [campaign]. We offer personalised ‘gifting assistants’, personalised packaging, even white glove personalised delivery with chocolates and flowers,” says Amit Pande, who heads up The Collective and the international brands division at Mumbai-based company Aditya Birla Fashion and Retail Limited (ABFRL).
This has been one The Collective‘s most successful campaigns to date, he notes. The retailer, which stocks international brands such as Moschino, Michael Kors and Karl Lagerfeld, has 16 stores in India. Pande stresses that relevance to Indian culture is paramount and merely incorporating Indian motifs into logos or placing Indian motifs on bags won't suffice. “You have to choose how your products will be a proud and appropriate gift or wearable during Diwali,” Pande says.
Gucci, Louis Vuitton and Christian Louboutin have all joined the tradition of sending gifts to their VIP clients, mirroring the Christmas practice. Parikh suggests that luxury brands should think beyond typical offerings like candles, flowers and chocolates. “We don't believe in merely gifting our VIP clients. Instead, we prefer to provide them with exclusive experiences. Last year, we organised a special facial session with a renowned LA facialist for our VIP clients, ensuring they had a festive glow for the holiday season. The response was overwhelmingly positive. Customised experiences are the most effective way for luxury brands to engage with their VIP clients.”
Beyond India
The Indian diaspora provides a notable market for Diwali-related events and products. Take the UK for example; the 2021 census in England and Wales revealed that 3.1 per cent of the population of those two countries, or more than 1.86 million people, identified as having Indian ethnicity, making the diaspora a substantial market — and one that is still relatively untapped.
Luxury brands are finding success in organising Diwali events. For instance, Cartier hosted a Diwali Ball at London’s Savoy hotel in partnership with the UK edition of Condé Nast Traveller earlier this month. (A more intimate event planned to take place afterwards in Dubai, in collaboration with Minawala Mehta, is no longer going ahead due to the situation in the Middle East.)
“Brands are now organising extravagant Diwali events in cities like London, New York and Dubai which can rival celebrations in Delhi or Mumbai. However, there is room for innovation; to do something that is more experience driven other than just another event,” says Peepul Advisory’s Bhattacharya.
These events offer luxury brands an opportunity to establish a direct connection with their consumers. Minawala Mehta underscores the importance of this engagement: “What Indian shoppers truly seek from international brands during the festive season is a sense of acknowledgment. Despite our longstanding purchasing power, it’s exciting to finally see the recent surge in international brands entering our market and adopting more targeted marketing strategies.”
Correction: Photo caption updated to state that Le Mill is located in Mumbai. (23/10/23)
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