Maha Kumbh to add $23 billion to India's economy
What's the story
The Maha Kumbh, a major religious congregation held once every 12 years in Prayagraj, northern India, is likely to draw around 45 crore people over six weeks. The event has piqued the interest of global consumer goods behemoths, including Nestle, PepsiCo, Coca-Cola, Reliance Industries Ltd., Hindustan Unilever Ltd., and Reckitt Benckiser Group Plc. The firms are leveraging the massive marketing opportunity to combat India's ongoing economic slowdown.
Marketing strategy
Mahakumbh: A marketing goldmine for global brands
Companies are likely to spend around $310 million on advertising and promotions, independent brand consultant Harish Bijoor predicted. The roads leading to the Ganga River, an important site for Hindu pilgrims, are lined with billboards, vendors, and branded resting spots. This marketing strategy hopes to attract a mixed audience of farmers, office workers, millionaires, and mystics.
Economic boost
Mahakumbh's economic impact and challenges
The Indian government expects the Mahakumbh to add $23 billion to the slowing economy. However, as the event wraps up on February 26, companies have the task of converting the sea of crowds into sales. In anticipation of the event, UP has been building bridges, marketplaces, and hospitals to host the crowd. Companies are cashing in on this captive audience by promoting their products in the temporary tent city along the riverbanks.
Preparations
Infrastructure development and marketing tactics at Mahakumbh
Their marketing strategies include branded blankets and resting pods, ads in temporary restrooms, mini-stores by rapid delivery service firms, community lunches, Instagram video posts for branding, mobile ATMs, and Kumbh-labeled debit cards. The state government spent $808.5 million on this infrastructure development, while the central government, led by Prime Minister Narendra Modi, contributed close to $250 million.
Expert opinion
Analysts' perspective on Mahakumbh's economic impact
Dolat Capital Market analyst Sachin Bobade said companies join the Mahakumbh to connect with a large audience. He predicted a small yet visible rise in demand, adding, "There's a fear of missing out on Kumbh. Overall market conditions aren't great. There will be some demand uplift, but it will not be major." Despite the hurdles, the government hopes this religious congregation will revive the economy from its slump.