How Working Capital Loans Help MSMEs Capitalise on Seasonal Demand to Boost Sales for Holi Festival

May 23, 2024
Updated on

Festive season is a fantastic chance for Micro, Small and Medium Enterprises (MSMEs) to harness their potential and grow their customer base excessively. They can reach out to new customers, expand into new markets, and increase revenue during these special occasions. According to the data from Ecom Express, festive season sales from 2021 to 2022 have seen a growth of 55% in shipment volumes.

On business-as-usual days, the e-commerce industry was making nine million shipments per day. Sales volume went up by around 3X on the peak days of the festive season sale in 2022. MSMEs in India expect to grow more than the previous year during this Holi festival. Holi brings a lot of opportunities for MSMEs to boost their sales, like most other major festivals. 

Holi is a popular Indian festival of colours celebrated with great fervour and enthusiasm throughout the country. It is usually celebrated in March and marks the start of the Hindu New Year. March 8 is the date of Holi in 2023. On this day, people smear and drench each other with colours and enjoy the festivities. People also eat traditional sweets and savoury snacks and exchange gifts. During the Holi festival, everyone, regardless of caste, creed and social status, comes together to celebrate and enjoys the joyous occasion. 

Holi is also a reminder of the importance of celebrating life and the beauty of unity. People of all ages come together and celebrate the victory of good over evil. It is a reminder of how beautiful life can be when celebrated with love, laughter and harmony. As a result, it results in a spike in demand for certain products such as food, drinks, and decorations as people indulge in festivities. Therefore, Holi festival presents a great chance for small businesses to leverage this opportunity to benefit from seasonal demand and boost their sales. 

Most Holi products, including toys, pichkaris, food items, etc., are manufactured by MSMEs or the uncategorised sector. Here are a few sectors/industries that will benefit from Holi 2023. 

Industries that will benefit from Holi 2023

Manufacturing Sector

The Manufacturing Sector has a lot to gain from the Holi festival. First of all, it provides a great opportunity for manufacturers to showcase their latest products and services to potential customers. This could lead to increased sales, as customers may be more willing to purchase products they have seen in person.

Holi 2023 can also be a great time to introduce new products and services, as they may have more of an impact on customers when they are released during the festival. Finally, it can provide a great opportunity to build relationships with existing customers, as they may be more likely to return to the same business if they have been shown a good time. Some of the major Holi products include:

Eco-friendly Colour:

Every year, people spread across the country gear up the shop for Holi items and accessories. One of the important items in the holi-bucket list is colour or Gulaal. Therefore, it is the right time for colour manufacturers to flourish. Holi is incomplete without splashing vibrant colours at each other and enjoying the moment. Over the years, MSMEs have seen a huge spike in their business as they are playing a great role in promoting the use of eco-friendly and skin-friendly colours during the Holi festival.

These eco-friendly colours are made up of natural ingredients like flowers, fruits, leaves and herbs. These colours are safe for the environment and do not contain any harmful chemicals. The colours are easily washable and do not cause any damage to the skin.

Decorations and Rangolis:

Decorations form an important part of Holi celebrations as well, and people tend to buy colourful items such as balloons, streamers, and banners in order to decorate their homes. MSMEs produce a variety of decorations for the Holi festival, like wall hangings, paper lanterns, and garlands. With proper marketing and promotional activities, MSMEs can ensure that their products are in great demand during the festive season. This will help them generate more revenue and profits, enabling them to grow their business.

Water Guns and Pichkaris:

Water guns, also known as water blasters or pichkaris, are fun toys for both adults and children. MSMEs selling water guns and pichkaris during Holi have become a lucrative business over the years. MSMEs selling water guns and pichkaris not only make a good profit during Holi but also benefit other industries. For instance, they often buy raw materials from local craftsmen and artisans to make toy guns and pichkaris. This helps in boosting the economy of the local area and also provides employment to many people.

Trading Sector

The Trading Sector benefits from the Holi festival in a number of ways. One way is that it provides an opportunity for businesses to attract more customers and increase their sales. For instance, many businesses offer discounts and promotional offers during Holi to encourage people to purchase their products. Additionally, the festive atmosphere and the vibrant colours of Holi attract more people to shop and purchase goods. This increased business leads to increased revenue for the trading sector. Some of the products from Trading that benefit from Holi 2023 are:


Garment industry can take advantage of the wide range of colours and styles available to design clothing for the celebration. This helps them to showcase their creativity and create unique pieces that not only look attractive but also stand out during the Holi festival. Furthermore, garments designed for Holi can be used as promotional items or even given away as gifts to customers and potential buyers. Additionally, the festival offers a great platform to introduce new collections and brands, thus helping the garment industry to increase its sales and profits.

The emergence of mainstream media and social media has drastically increased awareness of festive fashion trends. There has been a surge in demand for festive fashion items, with people buying more than ever. Social media platforms such as Instagram and Youtube have become a great source of inspiration for festive fashion. 

Mainstream media outlets are also playing a role in promoting festive fashion trends, with magazines, TV shows and websites showcasing the latest looks. This has led to people becoming more fashion-conscious and wanting to dress up for the festive season.

Online shopping has also made it easier for people to buy the latest festive fashion items, with many retailers offering discounts and promotions. People are now more willing to spend on festive fashion, as they have become aware of the latest trends and are eager to keep up with them. As a result, the festive fashion market has grown significantly and retailers are now stocking more items.


Holi is a new beginning, and people usually buy new footwear to match their clothes and celebrate the season. The footwear industry benefits from the Holi festival in various ways, such as increased sales of shoes, sandals, and slippers of various colours to match the colourful clothes people don for Holi parties. People also buy special footwear for the festival, such as colourful sandals, jutis, and mojris. The festival also allows the footwear industry to explore and experiment with different materials and designs. It also provides an opportunity for footwear companies to introduce and promote the latest collections. 

Accessories Industry

The Accessories industry benefits from Holi in a number of ways. Firstly, people tend to buy new and colourful accessories to go with their festive wardrobe, leading to an increase in sales for accessory retailers. Secondly, Holi encourages people to dress up in bright and vibrant colours and accessories, leading to increased demand for such items. Thirdly, people may also buy accessories as gifts for their friends and family, which again boosts the accessories industry. Innovative ideas like floral jewellery and accessories and pieces inspired by celebrities and influencers have been trending, and small businesses can make the most of this demand.

Beauty Products 

Holi is a great opportunity for beauty and skincare product retailers to capitalise on by selling skin care products. During the Holi festival, beauty and skincare product retailers receive an influx of customers purchasing their products in anticipation of the celebrations. Many people prefer natural skin care products to apply to save their skin before they get ahead with the celebration.

Natural oils and masks can help keep their skin moisturised and nourished, while the natural ingredients used in the product help to protect and rejuvenate the skin. The natural ingredients also help to reduce inflammation and improve skin texture. Hence, by taking advantage of it, they can benefit from increased sales and customer loyalty.

Service Sector

Holi is an important occasion for the service sector. It provides a great opportunity for businesses in the service sector to promote their services and increase their revenues. The hospitality sector, such as hotels, restaurants, and travel agencies, is the most benefited from the Holi festival. The sale of traditional snacks and sweets, tickets, and other services also increases. The transport sector also benefits from Holi. Some subsectors witnessing growth in Holi 2023 are:

Beauty and Skincare:

Beauty and skincare industry also stand to benefit from the Holi festival. This is a perfect time for beauty parlours to introduce new services and products, as people are all in a festive mood and ready to try something new. Makeup artists can benefit from party makeup bookings. They can offer special discounts and deals on services and products to attract more customers and create buzz and promote services.

Beauty parlours can also use Holi as an opportunity to launch limited edition products, which will further help them in increasing their sales. Furthermore, they can also host beauty contests, activities and workshops to engage customers. Therefore, Holi is a great time to increase brand visibility and reach out to more customers in the local market. 


Restaurants can capitalise on the festivities of Holi by offering special deals and discounts. This can be done by providing discounts on traditional Holi dishes like gujiya, a sweet pastry filled with coconut and nuts, or offering deals on food and beverage combinations related to the holiday. Additionally, restaurants can create festive decor and atmosphere that capture the spirit of Holi, making it an attractive place for customers to visit and celebrate.

Furthermore, restaurants can take advantage of the increased foot traffic during this time by collaborating with local vendors and offering their products in-store. This could be a great way to boost sales, as well as provide customers with a memorable and unique experience. 

Food delivery orders also go up significantly during the Holi Festival. This is due to the high demand of people wanting to enjoy their favourite meals without having to leave their homes. Many people find that it is a convenient and hassle-free way to order their favourite dishes and have them delivered right to their doorstep.

With the combination of amazing offers and discounts that are available during this period, the popularity of food delivery has risen significantly. Restaurants are also making the most out of this trend by providing exclusive discounts and offers to those who order. This has resulted in an incredible surge in food delivery orders during the Holi Festival as more people look to make the most out of their festive season.

Food Products: 

Food is an important part of the Holi celebrations. Even if this sector is not directly selling Holi products, the festival impacts this industry indirectly. During the festival, people usually tend to prepare special dishes, engage in outdoor activities and celebrate with friends and family. This usually involves large gatherings, sharing meals, and exchanging gifts.

As a result, food product demand is expected to spike during the Holi festival 2023 for items such as potatoes, chillies, rice, and other ingredients used in traditional Indian dishes. Seasonal holiday demand provides a great opportunity for MSMEs to increase their revenue and profits. Let’s explore some tips on how MSMEs can enhance their revenue and profits during the demand boost in Holi 2023.

Tourism Industry

Holi has a great influence on the tourism industry in India due to the way it is celebrated. The vibrant colours, music, dance and delicious food make it an attractive event for tourists from all over the world. Holi also gives a unique opportunity to experience the culture and traditions of India. Tourists can take part in the festivities and enjoy the festive atmosphere. It also provides an opportunity for tourists to explore the local markets and purchase souvenirs. The vibrant colours of Holi can be used as a great opportunity for photographers to capture the beauty of the festival. 

Hotels and restaurants also get a lot of opportunities to promote their services to potential customers during the Holi festival. When tourists arrive, the bookings of hotel rooms and restaurants skyrocket. Many people travel from different parts of the country to celebrate it and this creates an influx of tourists who are in need of accommodation.

Hence, Hotels can capitalise on this opportunity by offering attractive discounts and promotions to attract more customers. In addition, the hotel industry can use the festival to create social media campaigns to reach out to more potential customers. Through these campaigns, hotels and restaurants can showcase their services, promote their festive packages, and create awareness about the festival.


Holi is a great time for everyone to come together and enjoy the festivities. Hence, the transportation industry also benefits from Holi in various ways. The festival sees an increase in travel as people from all corners of the country gather and celebrate. The Holi festival also gives people an excuse to travel, which can result in more routes being opened up. There are specific destinations that people travel to celebrate the Holi festival. Some of the most visited places include Varanasi, Mathura and Vrindavan. This leads to increased demand for transportation to that particular destination, resulting in more business opportunities

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Quick Tips for MSMEs to increase their revenue and profits during Holi 2023?

Businesses Should Stock and Manage Inventory

During this time, MSMEs should take special care to stock and manage their inventory so that their customers can have access to the products they need. This is especially important since the demand for products rises significantly during the festival season. Therefore, MSMEs should stock up on popular products to meet the increased demand and also keep a check on their inventory to ensure that the products are not overstocked.

They should also make use of technology to track their inventory and ensure that they have enough stock to meet the demand. Additionally, they should also plan their inventory in advance so that they can avoid any last-minute rush and ensure a smooth supply of products during the festival season. Properly managing the inventory during Holi can help MSMEs ensure customer satisfaction and maximise their profits. 

MSMEs can Increase their Capacity and Reach 

MSMEs have a great opportunity to increase their capacity and reach during Holi 2023. The festival of colours provides a great platform for them to showcase their products and services. By offering special offers and discounts for their customers, they can attract more customers. Additionally, they can also utilise the festival to launch new products or services, thus helping them reach out to a larger audience via WhatsApp and other social media platforms.

Moreover, they can use this opportunity to collaborate with other businesses and form strategic alliances, which can help them gain more market share. For example, eateries can collaborate with traditional confectioners to offer Holi specials that are not on their regular menu. Furthermore, they can also use the Holi festival as a platform to create brand awareness and recognition. By organising events and activities related to the festival, they can promote their business and increase their reach. 

Usage of online platforms

MSMEs can use online platforms like Indiamart or MSME Global Mart to promote their products during Holi. This way, they can reach a larger audience, create more awareness about their products, and generate more sales. With the help of their websites or social media platforms such as Facebook, Instagram, and YouTube, MSMEs can post promotional content about their products and services.

This will further help them to increase their sales during the festive season. Social Media is the best medium through which MSMEs can market their products. According to a report by Economic Times dated 11th March 2022, 61% of Indian consumers have said that they make their buying decision through social media. 

The e-commerce platforms in the country registered total sales of Rs 24,500 crores during the first four days of the festive season sales for 2022, almost 1.3X higher than last year. These platforms are clocking sales worth Rs 6,000 crores per day during their festive sales. This was a turning point for many small businesses. Furthermore, MSMEs can also post images of their products in their Google Business Profile to encourage customers to purchase them. MSMEs can also use their contacts to connect with local vendors and retailers who can help them sell their products. Thus, online platforms are a great way for MSMEs to promote their products during the Holi festival and increase their profits.

Showcase good photographs or a catalogue of the products

MSMEs can use good photographs or a catalogue to promote their products during Holi 2023. This will be a great way to attract potential customers and get the word out about the products. The photographs should be of high quality and should include a description of the products, the prices and any special offers. This will help customers to make an informed decision about their purchase. Additionally, the photographs should showcase the products uniquely and interestingly to stand out from the competition. 

MSMEs should encourage their customers to leave positive reviews and build a good online presence. They can use these reviews and testimonials to add credibility to their products. This will give potential customers the assurance that the products are of high quality and worth the money. By doing these things, the MSMEs can ensure that their products stand out from the competition during Holi and capture the attention of potential customers.

Offer Discounts

MSMEs can use discount offers to promote their products during Holi 2023. Discount offers are a great way to attract customers and increase sales during this festive season. As per another report by Economic Times dated 11th March 2022, 86% of people prefer shopping during the festive season. By providing discounts, MSMEs can create a sense of urgency and encourage customers to take advantage of the offers while they last. This will help to increase their sales and visibility in the market. Additionally, it will also help to create a positive image of the MSMEs in the minds of customers. 

Discounts can be offered in the form of percentage off, buy one get one free, free shipping and more. MSMEs must also ensure that the discount offers are properly advertised through social media, emails, banners and other marketing tactics. These strategies will help to make sure that customers are aware of the discount offers and will make it easier for them to take advantage of them. 

Exports during the Holi season

Holi is one of the seasons MSMEs have seen a significant boost in export in recent years. Apart from people from India, many Indians living in foreign countries play Holi, and the colourful tradition has found favour among people from all ethnicities because of the vibrant and joyous way it is celebrated. Hence, the demand for Holi must-haves like colours, pichkaris and other Holi products increases.

Business owners have widely recognised the potential of MSMEs exports as a great way to increase their global presence and gain access to new markets. Business owners have reported an increase in their profits due to the increased demand for their products and services. 

Holi 2022 witnessed a tremendous increment in MSME exports. According to Praveen Khandelwal, the Secretary-General of the Confederation of All India Traders (CAIT), Holi festival sales registered around a 30% increase during Holi 2022. The estimate on Holi, business worth about Rs 20,000 crore is reported in the country with no sale of Chinese goods. Earlier, China exported Holi materials of about Rs 10,000 crore every year, primarily of colours, toys, balloons, etc., the trade body stated. MSMEs are expected to continue to see similar growth leading up to Holi 2023.

How do Business Loans encourage MSMEs to enhance their Business during Holi 2023?

Holi is an auspicious festival that marks the beginning of the New Year. Holi 2023 will be a time for businesses to take advantage of the business loan opportunities available. Business loans are a great way for MSMEs to enhance their business during the Holi festival. These loans provide financial assistance to business owners to help them with their business needs, such as purchasing new equipment, hiring new staff, and improving their services.

With the help of these loans, MSMEs can improve their production, increase their profits, and reduce their operational costs. Business loans also help businesses expand their market reach and explore new opportunities. Moreover, business loans allow MSMEs to sustain their business during difficult times and benefit from the growth in their industry. With the help of business loans, MSMEs can make the most of their investments and enjoy the success and prosperity of their business during the Holi season.


Holi 2023 is a great opportunity for MSMEs to capitalise on seasonal demand. The festival of colours is celebrated all over India and is an ideal time to promote goods and services. MSMEs should focus on offering discounts and rewards and providing high-quality goods and services to their customers.

By doing so, they can stand out from the competition and attract more customers. MSMEs should also focus on creating an online presence. They should use social media platforms to promote their goods and services. Additionally, they should ensure that their website is up to date and contains all the relevant information about their products and services. 

During the Holi season, as footfalls increase, the pressure of customer demands is likely to be significantly higher, and MSMEs should ensure that their customer service teams are well-trained and ready to respond to any queries or complaints quickly. By providing excellent customer service, MSMEs can build trust and loyalty among their existing customers and acquire new ones during the season. This can help MSMEs to capitalise on seasonal demand in Holi 2023.

NBFCs have been playing a major role in providing financial assistance to MSMEs for a long time and this time, it is no different. MSMEs can avail of loans from NBFCs like Kinara Capital to expand their business, build infrastructure, purchase equipment and enhance their working capital. The process of availing Business Loan from NBFCs is hassle-free and quick, as the paperwork is minimal and the documentation is minimal. NBFCs also provide financial advice to MSMEs to help them manage their finances and make informed decisions. 

Kinara Capital is an RBI Registered Systemically Important NBFC firm in India providing Unsecured Business Loans to MSMEs. Small Business Owners can avail of fast & flexible loans from ₹1 lakh to ₹30 lakhs available within 24-hours from this leading last-mile lending firm. With its mobile-first approach, the company’s myKinara App is available in vernacular languages. With Kinara offering Business Loans to MSMEs, Holi 2023 is sure to be a celebration of growth and success. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.

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