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HOW FESTIVALS IMPACT THE ECONOMY

It's an interesting thing to study on how festivals impact economy.  Festivals bring in Demand which leads to economic boom. During festivals there is exchange of gifts. Chocolates, fruits, sweets, decorating items, idols as such high demand. Brands like Archies Gallery and Florista see strong business which transalate to huge profits during festivals.

During the festival seasons on account of the high demand, companies raise their profit margins and try to make more out of the festive demand. The established brand names get an additional advantage. There is marketing of products with advertisements that focus on the emotional bonding of the festival seasons. For example, one of the popular names is Cadbury, who has over the years been an expert in the art of marketing their products according to the mood of festivals

The hawkers or shopkeepers on the streets also see good profits. Many of them switch their business models to meet the need of the day.  The products are aligned to the festival needs. In addition to the usual product they may sell crackers during Diwali or colors during Holi.

There are two kinds of products which have demand during the festivals. The products which are the focused on the festival is cantered. This may comprise of the crackers of Diwali or the colors of Holi. The other type of products are the greeting cards, sweets or gifts which are common to all festivals.

Let us have a look at the festival of Diwali. It creates demand for crackers, fire-crackers and other articles which are a part of the occasion. This brings into existence a breed of shopkeeper who caters to these needs during the occasion. To sell crackers throughout the year may not be of much profitable but on the day of need, it works. The revenues are sometime enough to last them for a year.
Crackers sell like hot cakes and these shopkeepers find a new source of living. The cracker industry is estimated to be anywhere around Rs.1000 cr to Rs.1200 cr and about 80% of it done during the Diwali. The festivals give them opportunities to these shop keepers to get some earning from the occasion. In addition to this the business of candle, greeting cards, sweets and other associated items face high demand and their business flourishes.


This post first appeared on MARKET WIRES, please read the originial post: here

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HOW FESTIVALS IMPACT THE ECONOMY

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