19, Oct 2023
Qoruz Diwali 2023 Report: Harnessing The Power of Influencer Marketing in India’s Rs.90,000 Crore Festive Market
Bengaluru, October 19, 2023: As the spirit of Diwali spreads across the country, brands find themselves in a bustling market worth a staggering ₹90,000 crore, filled with promising opportunities. Today, Qoruz, the leading influencer marketing platform, unveils its comprehensive Diwali 2023 Report, revealing the interplay between consumers and influencers.
The report provides valuable insights into the impact of influencer marketing on brand promotion during the festive season.
Collaboration Trends: Over the past two years, there has been a remarkable 21% increase in influencer collaborations, reflecting the strengthening of partnerships between brands and influencers. Brands today allocate over ~₹300 crore for influencer marketing during the festive season.
Engagement with Influencers: A staggering 80% of Diwali shoppers actively engage with influencer-led content, reaffirming influencers’ central role in shaping consumer preferences. Influencer marketing is 1.5x effective on millennials as compared to other age groups like boomers and Gens X and Z.
Changing Consumer Behaviours: Over the past decade Indian e-commerce has grown by 20x, with a 15x jump in annual transacting user base. This figure spikes during Diwali, with 45% of shoppers anticipating increasing their online spending this festive season.
Geographical Breakup: 50 million e-commerce buyers come from tier 2 cities and lower, while the remaining 25 million are from the nation’s metros.
Diwali Influencer Campaigns – A Sector-wise Breakdown
The largest influencer marketing spends sector-wise comes from personal care at 20% followed by food & beverage at 16%. Despite this, mobile phones have seen the largest growth in spends during Diwali, up 48% in 2022 compared to 2021.
Food: Food Influencers from tier 2 & 3 cities have outperformed their tier 1 counterparts. Nano influencers recorded a remarkable 9.49% engagement rate during Diwali 2022.
Home Décor: Bengaluru emerges as the hub for successful home décor influencer campaigns, with nano influencers boasting an impressive 9.09% engagement rate.
Fashion: Fashion brands experience heightened engagement, particularly through micro and nano influencers. During Diwali 2022, nano influencers achieved an impressive engagement rate of 7.1%, surpassing their macro and mega counterparts, whose engagement sat at 1.2 and 1.1% respectively.
Emphasising the significance of this report, Praanesh Bhuvaneswar, Co-Founder and CEO at Qoruz, said, “In the dynamic world of influencers, our Diwali 2023 Report underscores the pivotal role of influencer marketing, especially during the festive season. Influencers are poised to be the next significant evolution in the marketing industry. With their innovative thinking and capacity to influence consumer choices, no brand can overlook the impact of influencers. At Qoruz, we’re proud to lead the way in facilitating these connections.”
Marketing Strategies for Brands to Win Diwali
Influencer collaborations have seen a 21% increase during Diwali over the last two years. This has culminated in more than 67,000 posts across a network of 22,000 influencers, amassing total engagements of 5.3 million and 3.7 million video views.
Influencer-led content not only resonates with consumers but also garners their trust through authenticity.
A significant 66% of Diwali shoppers make purchasing decisions based on influencer recommendations.
User-generated content (UGC) greatly influences 79% of purchasing decisions, underscoring the value of authentic customer relationships.
Regional language campaigns are effective, as 53% of Diwali shoppers prefer content in their regional language, highlighting the importance of linguistic relevance.
The maximum impact is achieved through a combination of paid advertisements and influencer campaigns. However, choosing the right influencer for Diwali campaigns is crucial.
“Content marketing through the consumer’s device-agnostic journey will be critical, and in the upcoming festive season, mobile and moment marketing should be a key focus therein. Second, influencers are considered primarily for mid-funnel marketing. However, considering the breakthrough in the creator economy, and related consumer behaviour , this festive season brands can explore a full-funnel influencer strategy to maximise ROI”, shared Chaaya Baradhwaaj, Founder, Managing Director, BC Web Wise.
Commenting on the importance of choosing the right influencer partners, Sooraj Balakrishnan, Head of Marketing, Acer, said, “In the dynamic world of influencers, authenticity stands out. Brands must forge genuine connections, ensuring shared values with influencers. A collective of micro-influencers often resonates more profoundly than a single celebrity, particularly during festive times.”
In India’s evolving digital landscape,the ongoing rise of online shopping is set to be transformed by influencer marketing, becoming an integral part of the festive shopping experience for years to come.