Diwali, for the corporate world, was truly the season to be jolly this year. From our contacts around the country, we learn that companies increased their spends on Diwali gifts by as much as 50-70 percent.
Of course, one must remember that last year’s spending was abnormally low, thanks to the R-Word.
Last year, spends across sectors on corporate gifts (for customers as well as internal gifts for employees) were in the range of Rs. 150 - Rs. 300. But this year it has gone up to Rs. 300 - 550.
And you can bet the financial sector is feeling its oats again. From being the gloomiest sector last year, this year it was the most generous, spending an average of Rs. 600 per gift for employees and customers. (Bubble, anyone?)
IT was in second place, spending between Rs. 300 and Rs. 350. Its impact on the business wasn’t insignificant, because, as Mukesh Bansal, CEO, myntra.com, a corporate gifting Web site, says, “IT budgets are lower than the financial sector, but they have the volume, in terms of employees.” Telecom, FMCG, and manufacturing followed close behind IT.
All very rosy, yes?
But we can’t help thinking most of those people would have preferred a good old-fashioned Diwali bonus.
(Research: Nilofer D’Souza)
(This story appears in the 03 December, 2010 issue of Forbes India. To visit our Archives, click here.)