Demand for apparel, FMCG, gadgets fires up festive sales

Retailers of dwelling home equipment, fast-moving client items (FMCG) and attire stated prospects flocked to the showrooms forward of Diwali.

Electronics retail chain Vijay Gross sales reported development in volumes in addition to worth on this festive season, in comparison with final 12 months, with customers shopping for bigger tv units, microwaves, cell phones and laptops. Gross sales grew for each entry degree and premium electronics and residential home equipment, stated a prime government.

“General, this festive season has been extraordinarily good. We’ve seen development of practically 15% in gross sales. After a very long time, we’ve seen development in volumes as effectively at 10-11%. Solely two classes, air conditioners and fridges, had been flat primarily due to the climate. Barring these, all different classes have grown and have executed very effectively,” stated Nilesh Gupta, director, Vijay Gross sales.

Most patrons used the choice of straightforward month-to-month instalments at the same time as firms doled out promotions equivalent to cashbacks and freebies, Gupta added.

Packaged meals firm Parle Merchandise reported 6-7% rise in gross sales quantity this festive season, primarily attributable to individuals making renewed purchases after two years of covid-induced lockdowns and subdued festivities, stated Mayank Shah, senior class head, Parle. “Shoppers had been within the temper to rejoice and we noticed robust demand in quite a few meals classes that elevated by 10-12% (worth development) in September-October, in comparison with the earlier 12 months October-November (the Diwali interval). Quantity development was 6-7%,” he added.

To make certain, demand for client items was muted as inflation impacted family budgets. Corporations are additionally reeling underneath excessive uncooked materials value, which is hurting margins.

Final week, packaged client items firm Dabur India stated it had ample shares of reward gadgets equivalent to Actual juices, honey and Chyawanprash main as much as the festivities. “Stock ranges within the commerce have gone up and commerce has been receptive to that stock,” stated Mohit Malhotra, chief government, Dabur India.

Retail expertise firm Bizom, which tracks gross sales of packaged items inside shops, reported an uptick in consumption of sweets and savouries, together with particular competition meals, resulting in a surge in commodity gross sales throughout Diwali. Nevertheless, private care and drinks witnessed a sequential decline in gross sales.

“Festive meals consumption and gifting has helped shore up gross sales for FMCG merchandise within the competition season. We’ve seen customers exhibit revenge festivities which has helped drive FMCG gross sales up regardless of headwinds of inflation protecting their non-food discretionary spending comparatively underneath management. We’ve seen stronger development amongst city customers who positively had a stronger urge to exit and have a good time in comparison with rural people,” Bizom stated in a notice on festive season demand.

However following the festive season, customers will return to managed spending until inflation softens, stated Akshay D’Souza, chief of development and insights at Bizom.

Early knowledge from Retailers’ Affiliation of India indicated an uptick in demand for attire, electronics and footwear. “Within the 10-15 days earlier than Diwali, retailers reported 20-25% development over 2019 ranges. Clothes have executed effectively, jewelry has executed okay. Sale of digital gadgets additionally picked up simply earlier than the competition. Some dwelling gadgets didn’t do as effectively,” stated Kumar Rajagopalan, CEO, Retailers’ Affiliation of India. He, nevertheless, added that considerations round excessive inflation nonetheless persist. India’s retail inflation touched a 5 month excessive of seven.30% in September.