The festive season has traditionally been one of the biggest consumption opportunities for brands in India. From Diwali and Dhanteras to Christmas, Eid, and the New Year, brands across categories ramp up their advertising, launch festive offers, introduce limited-edition products, and compete aggressively for a larger share of the consumer wallet.
For years, the formula has remained largely familiar: discounts, celebrity endorsements, family-centric storytelling, and the promise of getting more for less.
But as consumers become more informed, marketplaces become increasingly crowded, and new-age brands compete with established players, the question is no longer simply about how much a brand can sell during the festive period. It is also about what the brand stands for once the discount disappears.
Brand Communion has started its new series, Festive Dialogues. The series is seeking to bring together industry leaders and examine how brands can navigate India’s evolving festive consumption landscape, while balancing immediate business objectives with long-term brand building.
Speaking in the latest episode of BrandCommunion’s Festive Dialogues, Dr. Ashish Kaul, Business Transformation Engineer and Managing Editor at NewsTrustIndia.com, and Founder of Folklore Entertainment, shared his perspective on the evolving role of festive marketing in India. Kaul has previously held leadership roles across organisations including Hero Realty Private Limited, Hinduja Group Limited, Bajaj Group’s International FMCG Business, and Zee Entertainment Enterprises Ltd.
From questioning India's deep-rooted dependence on discounts to emphasising the importance of product quality, Kaul argues that advertising can drive the first purchase, but it is the product and consumer experience that determine whether a customer comes back.
The conversation also looks at why startups and D2C brands need to be particularly careful about confusing marketing visibility with genuine consumer value, how Indian brands can learn from markets where product quality and market-specific innovation take precedence, and whether the familiar festive advertising vocabulary of family, gifting, and togetherness needs a rethink.
As artificial intelligence increasingly enters the creative and production process, the discussion also examines whether AI will fundamentally change advertising agencies, reduce production costs, and alter the role of human creativity.
At the heart of Kaul's perspective is a simple question for marketers heading into the festive season: if a brand has to depend on a discount to convince consumers to buy, what does that say about the value of the brand itself?
Kaul said that excessive discounting may help brands push volumes, but does little to build long-term brand equity.
According to him, the Indian consumer market is significantly driven by pricing, particularly during festive periods when consumers are already predisposed towards purchasing. While discounts can create an immediate sales opportunity, brands risk conditioning consumers to associate their products primarily with price.
“Most of the time, in an Indian context, if you want to drive volumes, pricing becomes very critical,” Kaul said, adding that the practice of offering steep discounts or additional products for free may help offload inventory but does not necessarily create a consumer brand.
Festive sales versus long-term brand building
Kaul believes the challenge becomes particularly relevant for newer D2C and startup brands, which often have to balance immediate ROI with the need to establish themselves in a competitive marketplace.
He argued that marketing cannot compensate for a weak product or poor consumer experience. While advertising may convince a consumer to make the first purchase, the product ultimately determines whether that consumer returns.
“Ultimately, when the product is consumed, that's where the real marketing begins,” he said.
Kaul also pointed to the high failure rate among startups, arguing that companies sometimes confuse marketing strategy with consumer experience. According to him, brands that depend heavily on pricing and mass-media visibility may succeed in driving trial, but repeat purchases depend on whether the product actually delivers on its promise.
For emerging brands, therefore, the festive season should not only be viewed as a sales window but also as an opportunity to establish trust and create a reason for consumers to return.
India’s discount-led consumption culture
Discussing India's consumption landscape, Kaul said the market is broadly divided between consumers who are highly influenced by seasonal sales and those who demonstrate stronger brand loyalty.
In multi-brand retail environments, he noted, the retailer often becomes a powerful influence on the purchase decision, with consumers comparing offers and discounts across products.
“In the Indian market, the consumer market is clearly divided into two. One market heavily relies on seasonal sales where brand loyalty is very low because you walk into a modern trade and you see where you get the maximum discount,” he said.
He argued that brands that want to build long-term equity should avoid making discounting the central proposition of their festive strategy.
The need for market-specific products
Kaul also drew a comparison between India and Middle Eastern markets, highlighting how product quality and market-specific innovation can determine a brand's success.
According to him, Middle Eastern consumers are more demanding when it comes to product performance, particularly because products have to work in specific environmental conditions. He cited automobiles as an example, noting that vehicles designed specifically for desert conditions can perform differently from models developed for European or American markets.
For Kaul, the lesson for Indian companies is clear: brands need to build products around consumer needs rather than simply pushing existing products through advertising and discounts.
He further argued that India's regulatory and quality-control environment needs greater attention, particularly in categories such as FMCG.
Are festive campaigns becoming repetitive?
Festive advertising in India often revolves around familiar themes: family, gifting, togetherness, and celebration. While these emotional cues remain relevant, Kaul believes that the emotion is ultimately a means to sell something deeper.
“Family is only a face for emotions. So ultimately you're selling emotions,” he said.
He highlighted the influence of children, women, and what marketers often describe as “pester power” in purchase decisions. Consumers can develop strong associations with brands through personal experiences and family influences, making emotional relevance an important part of brand building.
However, he maintained that emotional advertising cannot replace product value.
AI will transform production, not eliminate creativity
The conversation also touched upon the growing influence of artificial intelligence on advertising and marketing, particularly as brands look to create festive campaigns faster and at lower production costs.
Kaul cautioned against viewing AI as a free or automatic solution to marketing challenges.
“AI doesn't come free. And somebody has to manage AI. That talent doesn't come free,” he said.
According to him, AI will significantly transform production processes in advertising, but human talent will continue to play an important role in determining the creative direction.
He compared the current evolution of AI to previous technological shifts in filmmaking, editing and production, arguing that new tools have historically changed how creative work is executed rather than eliminating the need for creative professionals altogether.
For advertising agencies, the implication is that adaptation will be critical. Kaul believes agencies that fail to evolve with AI could face challenges, but he expects the industry to develop new talent, workflows, and business models around the technology.
‘If I have to discount my brand, what's the value of my product?’
For marketers preparing their festive campaigns this year, Kaul's advice centres on one fundamental principle: build the product before building the promotion.
“The biggest failures that Indian companies have is simply because you want to put somebody's face and the pricing to sell a product. That's not marketing,” he said.
He questioned the long-term value of repeatedly discounting products, arguing that premium and iconic brands demonstrate how consumer loyalty can be built around product quality and experience rather than promotional pricing.
Ultimately, Kaul believes the festive season should be used not merely to maximise transactions but to strengthen the relationship between a brand and its consumers.
