Consumer durable companies are expected to be among the largest spenders during the festive season, increasing their marketing expenditure by as much as 10-12%. Consumer sentiment is expected to be buoyant due to a good monsoon and higher salaries and pensions with the implementation of the Seventh Central Pay Commission recommendations. The sectors which advertise for tier-II, tier-III cities such as two-wheelers, consumer durables and others are expected to spend. The estimated spend during the four months from September to December is Rs 20,000 crore. The festive season starts with Ganesh Chaturthi and Onam in September, peaks during Diwali and continues on to Christmas. With the season contributing 40 per cent of annual sales, companies spend heavily on advertising to make the best use ofthe biggest shopping opportunity of the year. The surge in consumer spending drives sales for several categories of products, ranging from phones and clothes to vehicles and jewellery. 

India is expected to become the fifth largest consumer durables market in the world by 2025. Urban markets account for the major share (65%) of total revenues in the consumer durables sector in the country. Demand in urban markets is expected to increase for non-essential products such as LED TVs, laptops, split ACs and, beauty and wellness products. In rural markets, durables like refrigerators as well as consumer electronic goods are likely to witness growing demand in the coming years as the government plans to invest significantly in rural electrification. GST implementation will future help the industry to achieve its growth. Demand growth is likely to accelerate with rising disposable income, easy access to credit and better climatic conditions in rural areas. Smart cities development will have further impetus for growing demand in consumer electronics.

Global corporations view India as a vital market for the future. India has a young demographic and a middle class with rising disposable income. If the country can sustain its current pace of growth for some time and that is likely, then the average household incomes will triple over the next 20 years and India will become the fifth largest consumer economy in the world by 2025, as per a study by the McKinsey Global Institute (MGI).