Diwali just passed, Christmas is around the corner, and you know what else awaits? Crazy deals, jaw-dropping discounts, and irresistible sale offers! That’s right—it’s the festive season, and every brand, shop, and e-commerce platform is vying for your attention.

In fact, 84% of Indians plan to increase their festive spending, with 78% opting for shopping on smartphones. According to Redseer, India’s festive e-commerce market recently hit $14 billion GMV, with Tier-2+ cities driving 13% growth. Fashion leads the pack as the top category, followed by electronics, home decor, and beauty. With smartphone marketing driving this trend, it’s clear the festive season is a massive opportunity for brands and consumers alike.

But here’s the catch: How do you make the most of these discounts while keeping your savings intact? Let’s break it down.

The Strategy Behind Festive Discounts

In India, the festive period from Onam to Diwali contributes 20-30% of annual sales across industries. To tap into this demand, companies introduce festive discounts to clear inventory, boost demand, and capture a significant share of annual sales. A report by Glance reveals that 78% of consumers are influenced by festive discounts, with flash sales and cashback offers impacting 61% of purchases.

But how do companies manage such discounts? It boils down to the concepts of Listing Price and Selling Price. What are selling and listing prices? Here’s an example to explain:

Imagine you’re shopping during a sale, and you see a product with a price crossed out. That crossed-out price is the listing price (also called the maximum retail price or MRP). The new price you see below is the selling price—the discounted amount you actually pay.

The listing price is the original price set by the manufacturer, designed to ensure profitability. Even if the production cost is lower, the listing price includes profit margins. During sales, prices are reduced strategically to attract buyers while still keeping a profit. This approach not only helps shoppers save money but also boosts sales for the manufacturers.

For newer brands, offering discounts is a smart way to get noticed and build a customer base, making festive sales beneficial for everyone involved. By leveraging this pricing strategy, brands create the allure of savings, ultimately driving sales.

Smart Festive Budgeting & Maximising Savings

Here’s a question—do sales and offers actually help you save money? The answer depends on how you approach them. True savings occur when you stick to your budget and maximise value from every rupee spent. However, offers that encourage you to spend more to save more are often better skipped. The key is to stay within your budget and make thoughtful purchases rather than overshooting your limit in the name of discounts. Here are a few tips:

Planning: You can’t achieve meaningful savings by planning only a week or a month in advance. True financial stability requires a forward-thinking approach combined with consistent saving habits. Planning well in advance allows you to anticipate future expenses, allocate your resources wisely, and build a financial cushion for unexpected costs.

For instance, planning next year’s major purchases this year gives you the time to evaluate your needs, compare options, and budget effectively. By looking ahead, you also gain the opportunity to eliminate unnecessary expenses. Impulse purchases and last-minute decisions often lead to overspending, but a well-thought-out plan helps you prioritise what truly matters.

Budget: Budgeting and planning go together, making a budget isn’t just about limiting your spending—it’s about making thoughtful choices that align with your financial goals. Allocate funds for essentials first, like gifts or decorations, and then decide how much you can spend on non-essentials such as entertainment or dining out.

By sticking to your budget and using tools like the Money Manager on the axio app (Download here Google Play App Store) you can effortlessly stay in control of your finances. The app allows you to track expenses, plan your budget, monitor daily and monthly spending, manage all your bills in one place, and receive timely payment reminders. With everything streamlined and organised, you can enjoy the celebrations without compromising your financial health, ensuring a stress-free and financially secure start to the next phase.

Compare: To maximise savings, start with comparison shopping. Online platforms and local stores often offer competitive prices; checking across channels ensures the best deals. Use credit card rewards, cashback offers, and festive coupons to enhance savings. Prioritise thoughtful purchases—focus on quality over quantity to avoid wasteful spending.

Strategise: Strategic spending during festive sales can lead to significant savings, often up to 30-50% on high-demand items like electronics, clothing, and home essentials. By adhering to your budget and leveraging deals wisely, you can enjoy the festive season without straining your finances.

Although planning and budgeting may initially seem like a tedious task, they are invaluable tools for ensuring financial stability during and after the festive season. By setting a realistic budget, prioritising your purchases, and sticking to your plan, you can fully enjoy the festivities to the fullest.

Happy shopping and savings!

Disclaimer: The information in this article is compiled from various sources and is not to be taken as a substitute for professional advice on managing finances, reader discretion is advised.