Noida traders blame online trading for ‘tepid’ Diwali rush

Shopkeepers in busy areas known for heavy foot traffic said they were concerned about a noticeable drop in foot traffic.

Retailers across sectors ranging from electronics and apparel to mobile phones and liquor shared their challenges as well as anecdotal signs that more or less pointed to a shift in consumer preferences and an online shift in the market.

Some business owners said the rise of online shopping has squeezed profits, changing the post-Covid retail landscape.

Owner Yogesh Kumar, a popular Honey Telecom store in Noida’s Sector 18 market, said his spacious store, usually packed with eager shoppers, is now standing quietly as online platforms lure customers with competitive prices. “If someone wants a new mobile phone, the difference between our prices and online prices is huge,” Kumar said. “Even as we cut our profits, we barely break even on flagship models. It’s hard to compete.”

To level the playing field, Kumar says intervention is needed, either by regulating online prices or harmonizing them with offline rates. If prices were the same in both channels, brick-and-mortar stores would have a good chance, he said.

At Atta Market, a similar story unfolds. Noor Alam, owner of clothing store Top Collections, faced a sharp decline in business this Diwali. “There was a time when on the eve of Diwali there was no space in our store,” he said. “Now, as you can see, the market is much calmer.”

While clothing and electronics retailers struggle to compete with online prices, some industries remain focused on offline sales. For example, alcohol remains strictly offline due to government regulation.

However, even there, a prominent liquor retailer in Noida has seen a drop in sales this season. He suggested that economic factors and perhaps even a decline in disposable income could affect foot traffic.

“As online platforms grow, customer expectations and habits are changing, sometimes even in ways that indirectly impact high-margin products such as liquor,” he said.

However, retailers remain optimistic about the economic impact of Diwali. Sushil Kumar Jain, convener of Confederation of All India Traders (Delhi-NCR) and president of Sector 18 Market Association, expressed hope that the season will end on a profitable note for traders.

However, the atmosphere in Noida’s shopping malls was more festive. Visitors and shoppers thronged most of them for last-minute shopping.

Most markets witnessed a big push on Dhanteras on Tuesday as people bought metal utensils, gold and silver items.

However, for buyers, the simplicity and competitive prices of online stores are preferable to overcrowded markets. “Discounts in offline markets can be attractive, but online offers are often even more attractive,” she said.

“The quality of online products is not always consistent. If someone wants to see the quality firsthand, offline purchasing is the best choice,” she said.

The decision between online and offline shopping also reflects generational preferences.

Sonali Biswas, another Noida resident, said, “My children prefer to buy everything online, but my husband trusts offline stores. For him, visiting a store in person means trust,” she said.

It’s a sentiment echoed by young shopper Ashu Kumar, who regularly shops online, although he makes an exception for clothes. “I prefer to buy clothes offline because I need a custom fit and returning online can be difficult,” he said.