Coldplay’s recent concerts in Ahmedabad and Mumbai have caught attention. The British rock band, led by singer Chris Martin, reportedly set a new record for the biggest concert in the country, drawing an estimated 1.34 lakh fans to their gig in Ahmedabad on Sunday. This beats the previous records held by Diljit Dosanjh and Justin Bieber, whose concerts drew nearly 50,000 attendees each.
Prime Minister Narendra Modi commented on the concert
Even Prime Minister Narendra Modi commented on the concert. “You must have seen fabulous pictures of Coldplay concert organized in Mumbai and Ahmedabad. It shows that India has a massive scope for live concerts. Big artists from around the world are attracted towards India… I expect the state and the private sector to focus on needed infrastructure and skills,” PM Modi said.
“The concert economy boosts tourism and creates a large number of jobs. I urge both the state and private sectors to focus on the necessary infrastructure for the concert economy. Next month, India will host the first-ever World Audio-Visual Summit, a major event that will give the country’s creative power a new identity globally. The revenue generated from such events in the states also contributes to advancing the economy,” PM Modi added.
However, India’s expanding concert business tells a contradictory story about its economy. While people are thronging concerts in record numbers by buying tickets at steep prices, they are holding back on essential spending. The record concert attendings come when urban consumption is down in the country.
The Coldplay contradiction in consumption
India’s consumption has two stories to tell. While demand for premium products — from groceries and spirits to clothing and shoes — has bucked the slowdown trend, especially in the cities, there is a cutback in mass-priced segments due to inflation.
The likes of Hindustan Unilever (HUL), Diageo India, Shoppers Stop, Reliance Retail and Metro Brands said consumers may be truncating shopping lists of lower- or mid-priced products but the premiumisation trend continued even in discretionary categories.
“The secular trend of premiumisation remains resilient, with the premium segment growing ahead of our segment this quarter,” Rohit Jawa, managing director at HUL, has told ET recently. “This indicates that consumer needs and aspirations to upgrade continue to evolve, although they are currently opting for smaller packs to manage their overall spends. Premiumisation is really where the country, the market is going.”
How song & dance boost the economy
While the record attendance at concerts highlights how Indians consume, it also points at how a concerts can have a multiplier effect on the economy. Concerts in India will increase spending, giving a push to private final consumption expenditure, according to a recent report by Bank of Baroda .
The direct and indirect spending on these concerts spanning around two-three months will provide a significant boost to the overall spending and consumption. Key sectors like hospitality, transportation, and retail businesses will record significant growth.
“Our conservative-to-optimistic estimates suggests a push to spending ranging from around Rs 1,600-2,000 crore in the span of last two-three months, from the announcement of these concerts. However small the number is, if looked at an annualized basis, it can provide the desired impact on private consumption demand. The backward and forward linkages of the events are also widespread from manufacturing (for improved logistics) and services sector to flourishing of gig economy,” says the report.
