Air Conditioners

The demand for apparel, FMCG, accessories will increase the happy sales | Rare Techy


NEW DELHI : Retail companies were forced to sell during the festive season as they reduced demand in the weeks leading up to Diwali.

Retailers of home appliances, fast moving consumer goods (FMCG) and apparels said customers will visit the showrooms ahead of Diwali.

Electronics retail chain Vijay Sales reported growth in volumes as well as value this festive season, compared to last year, with consumers buying larger televisions, microwaves, mobile phones and laptops. . Sales grew for entry-level and consumer electronics and home appliances, a senior executive said.

“Overall, this festive season has been very good. We have seen a growth of almost 15% in sales. After a long period, we have seen a growth in volumes with 10-11 %. There are only two units, air conditioning and refrigerators, due to weather conditions. Barring these, all units have grown and become very efficient,” said Nilesh Gupta, Director, Vijay Sales.

Most customers used the option of flexible monthly payments even when companies offered promotions such as discounts and freebies, Gupta said.

Packaged food company Parle Products reported a 6-7% increase in sales volume this festive season, mainly due to new purchases after two years of covid-19 lockdown and events have fallen, said Mayank Shah, head of the central division, Parle. “Consumers are happy and we see strong demand in many food sectors which increased by 10-12% (value growth) in September-October, compared to previous year October-November (Diwali season). The volume growth is 6-7%,” he added.

In fact, demand for consumer goods was muted as inflation hit household budgets. Companies are also reeling under high asset prices, which are hurting margins.

Last week, luxury goods company Dabur India announced that a range of gift items such as Real water, honey and Chyawanprash are coming up at festivals. “The trading levels have increased and the trading has been good on that list,” said Mohit Malhotra, CEO, Dabur India.

The marketing technology company Bizom, which tracks the sales of packaged goods in stores, said that the increase in sweet and savory food, as well as special dinners, will increase sales. gifts during Diwali. However, personal care and beverages saw sales decline.

“Food consumption and gifting have helped increase sales of FMCG products during the festive season. We have seen consumers show off the discount events that have helped increase FMCG sales. despite the rise in inflation is keeping their non-food spending down. We have seen a stronger growth in urban consumers who are more likely to go out to celebrate rural people,” said Bizom said in a press release for the holiday season.

But after the festive season, consumers will go back to operating expenses until inflation moderates, said Akshay D’Souza, head of growth and insights at Bizom.

Preliminary data from the Retailers’ Association of India indicated an increase in demand for clothing, electronics and footwear. “10-15 days before Diwali, retailers said 20-25% growth over 2019 levels. Clothing has done well, jewelery has done well. electricity was also collected just before the festival. Some of the household items were not good,” said Kumar Rajagopalan, CEO, Retailers’ Association of India. However, he added that problems with high inflation still remain.

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