Companies are increasing marketing expenses to attract customers in a sluggish market

In the last quarter, companies spent so much to attract customers, as much as they did not do in any quarter since 2021 up till 2023.

This increase in spending has come at a time when economic growth declined to 5.4 percent in the July-September quarter due to a decrease in consumption. This is the lowest GDP growth rate in the last two years.

Everyone is trying to earn money in any way. If there is a slowdown, the average consumer usually starts doubting his ability to spend. To stop any such decline in morale, advertising and marketing departments double their efforts at such times. Companies’ spending has increased due to these efforts.

The upper section of Indian consumers is not affected by the recession and the lowest section is getting government help. But the purchasing power of the middle class, which holds a large share in Indian consumers, is decreasing significantly. In such a situation, if the income of the middle class increases, it becomes a major source of consumption. But at present it is showing slackness.

At present, the urban middle class is under pressure and the situation does not seem to any significant change in the next 2-3 quarters. Companies that have strong balance sheets and can create demand will spend more in advertisement and marketing.