Discover investment potential in 5 under-the-radar industries with soaring festive season demand!
The festive season in India can indeed be a profitable time for many industries. While we all know sectors that typically attract investors’ attention during this period, there are also lesser-known areas that can thrive and are in high demand during the festivities. These surprising industries often receive less attention from investors but have the potential to generate significant profits during this time.
Let’s dive into these five unexpected sectors that can experience substantial growth during the festive season.
The festive season in India is a time marked by religious and cultural celebrations, and it sees a significant increase in business activities. For companies, this season is of utmost importance, offering a prime opportunity to attract more customers to their products and services.
One enduring tradition during Indian festivals is the decoration of homes, which provides a boost to the home decor and furnishing industry. Companies in furniture, home decor, and textiles often experience a surge in sales.
Additionally, you might have noticed during this time that newspapers and TV are filled with more advertisements and fewer news stories. This season serves as a jackpot for the media industry and advertising companies.
Moreover, the festive season also brings big film releases featuring superstars, making it a crucial time for the multiplex and film industry.
Let’s begin by discussing the impact of the festive season on the media industry.
The media industry in India generates revenue through various channels, with advertisements being a prominent source of income. These advertisements are promoted across television, radio, newspapers, and digital platforms.
Additionally, the media industry earns revenue through subscription or premium services, such as video streaming platforms and digital news portals. Sponsorship deals also play a significant role in generating income, and local television channels receive revenue from subscribers through cable TV providers.
During the festive season, businesses and companies aim to reach as many people as possible to promote their products and services. This leads to a direct increase in revenue for television, radio, newspapers, and digital platforms.
As per an Economic Times report, the media industry is anticipating a double-digit increase in advertising revenue, exceeding Rs 30,000 crore during this festive season. This growth is expected because this year’s festive season is slightly longer than the previous year, and there are significant events, such as cricket matches and reality shows, that attract a large audience.
The relationship between advertising companies and the media industry is indeed special.
Have you ever wondered who creates those engaging advertisements you see on TV, in newspapers, or across digital platforms?
Well, it is advertising agencies that craft these compelling ad campaigns. Once the content is created, these agencies promote it on various media platforms.
Moreover, advertising companies also generate revenue by displaying advertisements on various online platforms. This ranges from tools like Google Ads, engaging in social media marketing, utilising email marketing, and participating in online advertising networks.
The digital advertising segment is expected to see substantial growth, with revenues predicted to reach Rs 765 billion by the year 2025.
According to The Economic Times, advertisers spanning various industries, including FMCG, retail, e-commerce, auto, and real estate, may increase their advertisement spending to tap into the increased demand among consumers during the festive season.
Following a period of lower-than-expected growth in the first six months, the media and advertising industry has high hopes for the second half of the calendar year.
Multiplex and Film Industry
If you are a fan of films, you would have probably heard of the significance of the festive season for the film industry, particularly in Bollywood. It has become a major trend to release high-budget films during festivals like Diwali, Eid, and Christmas. The reason behind this strategy is the expectation of higher box office earnings during these festive occasions.
During the festive season, movies have the potential to make substantial profits, as people are more enthusiastic about watching films and often plan outings with family and friends to catch the latest releases. Moreover, there has been a notable increase in visitors. According to a report from The Economic Times, since the COVID-19 pandemic, the average occupancy in theatres has risen from 35-40% to 60-70%.
During this festive season, there is an exciting lineup of 8 to 10 big films that are generating high expectations among multiplexes and the film industry. This Dussehra, fans can anticipate the release of Tiger Shroff’s ‘Ganpat’, and for Diwali, Salman Khan’s ‘Tiger-3’ is set to hit the screens.
Decoration and Furnishing Industry
The decoration and furnishing industry in India is a vast and diverse sector encompassing various products and services for adorning and furnishing homes and commercial spaces. This industry includes multiple sub-sectors, such as furniture, interior design, lighting, and more. In India, we understand the importance of cleanliness and decoration during festivals, making this season particularly significant for the decoration and furnishing industry.
According to a Statista report, the revenue of the furniture market is projected to reach an estimated US$5.00 billion in 2023. Moreover, this market is expected to witness steady annual growth with a Compound Annual Growth Rate (CAGR) of 7.77% from 2023 to 2028.
Among the various segments within this industry, the largest one by market volume is the home decor segment, which is anticipated to reach US$1.69 billion in 2023.
Paint companies experience a notable surge in demand during the festive season in India. In response, these companies often take significant measures to meet the rising demand for their products. The festive season is a time when people focus on decorating and cleaning their homes and commercial spaces, which in turn creates an increased demand for specialised paint and finishing products.
The festive season in India is not just about retail or consumer goods. It also provides opportunities for less-recognised sectors to flourish. Businesses like the TV industry, advertising companies, multiplexes, and many more can earn significant profits during this period. Investors must keep an eye on these areas as well.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not investment advice.