The Indian market is known for its vibrant culture, diverse population, and distinctive seasonal patterns. When it comes to consumer behaviour and market dynamics, India exhibits significant Demand Fluctuations compared to Western markets.
Despite being one of the fastest growing markets in the world many businesses keep failing and collapsing in India due to wrong pricing strategies.
Jet Airways, once a leading airline in India, ceased operations in April 2019 after facing severe financial difficulties. One of the key factors contributing to its downfall was their flawed pricing strategy. Jet Airways adopted an aggressive approach to expand its market share by offering heavily discounted fares. While this initially attracted customers, it eventually led to unsustainable revenue generation. The airline failed to cover its operational costs, including fuel expenses, aircraft maintenance, and employee salaries.
The seasonality in India differs significantly from that in Western countries. The lack of fixed dates for festivals and occasions, along with regional variations, makes understanding the Indian market a challenge for businesses.
It is essential for businesses to understand the importance of dynamic pricing and seasonality in a diverse country like India. High demand fluctuations occur in this country depending on different occasions and events. The business strategies need to be changed time to time depending on the demand in different occasions and events.
Sciative takes into consideration all the factors responsible for making a business strategy. We make our plans and predictions twice a year. Before the beginning of every year (November) and before the middle of every year (May).
Let’s explore the significant factors which causes demand fluctuations in Indian seasonality:
India’s festivals, occasions, events contribute to a dynamic consumer landscape that experiences distinct seasonal patterns. These patterns have a profound impact on purchasing behaviour, demand for certain products and services, and overall market trends.
The Indian Calendar and Festivals
Unlike Western countries, where events and occasions occur on fixed dates, the Indian calendar varies each year. It is based on a lunar system and incorporates various cultural and religious practices. As a result, the dates of festivals, holidays, and other significant events vary from year to year.
Major festivals such as Diwali, Holi, Eid, Christmas, and Navaratri are celebrated at different times each year. Sciative’s dynamic pricing team carefully do the planning and the assignment of flexible pricing strategies well in advance.
The Indian Climate
India’s geographical diversity results in varied climatic conditions across the country. For instance, summers in northern India are scorching, while southern regions experience heavy monsoons during certain months.
These climatic disparities influence consumer preferences, such as the demand for air conditioners, seasonal clothing, and travel. Sciative offers a dynamic pricing plan that adapt to climate fluctuations in India. Our approach involves strategizing based on different regions.
One significant factor contributing to demand fluctuations in India is the presence of “muhuratams” for weddings. Muhuratams are auspicious dates and times selected for wedding ceremonies.
As these dates change annually, they directly impact the demand for wedding-related services and products. Sciative’s dynamic pricing makes sure to meet the surge in demand during these periods.
Region Based Seasonality
Driving more complexity, Indian seasonality have regional variations in the celebration of festivals. For example, Diwali, also known as the Festival of Lights, is celebrated more prominently in states like Maharashtra, Gujarat, and Uttar Pradesh. On the other hand, Pongal, a harvest festival, is more widely celebrated in Tamil Nadu.
These regional variations influence customer behaviour and result in demand fluctuations in specific areas. Sciative’s team makes sure that their strategies align with these variations to drive profitability.
Uncertain events also influence customer traffic. For instance, the Goa Carnival attracts a considerable influx of visitors to the region, affecting traffic in transportation routes and accommodations.
Similarly, recently during the elections in Karnataka, there was a notable increase in traffic to the state. This sudden influx of people contributed to heavier traffic on the roads and crowded public transportation systems. Sciative’s AI-DP pricing follow these protocols and align their dynamic pricing strategies accordingly.
Sciative ensures proactive planning and forecasting to ensure our pricing strategies align with market dynamics. By studying past trends and analysing data related to festivals, occasions, and regional variations, we predict the future demand patterns accurately. This enables us to adjust prices dynamically and optimize revenue for our clients
To know more about our AI-powered dynamic pricing tool BRIO, reach out to us.