Early holiday happiness and the World Cup effect increase consumption

 Early holiday happiness and the World Cup effect increase consumption

In New Delhi: After experiencing sluggish sales in the first few months of the fiscal year, demand for consumer goods and personal care products has increased in front of the busy Diwali shopping season.

Director at electronics company Vijay Sales Nilesh Gupta remarked, "The outlook is getting better by the day. As more people choose them to watch the current cricket World Cup, demand for large-screen televisions is particularly high, Gupta noted.

The retailer might complete the holiday shopping season with robust double-digit sales growth compared to the previous year. A mini-Diwali would last well past the festival that comes on November 12 if India made it to the World Cup final on November 19. "Unseasonal rains caused us to miss out on the summer as well. Customers appear to be in the mood to spend, according to him. Loans with no interest and protracted repayment schedules have prompted more people to buy expensive items.

The nation's holiday season, which runs from Onam in the South through Durga Puja in the East, followed by Diwali, is a busy time for manufacturers of consumer goods as people spend money on new clothing, home appliances, and gifts. Arnab Roy, vice president of marketing for Coca-Cola India and south-west Asia, claims that after the difficulty and limitations brought on by the covid epidemic, customers are now more prepared to spend money. Over the coming years, you will witness this tendency in action. The same should happen this year as well. We anticipate honest spending across all categories from consumers, added Roy. However, Roy noted that inflation has been a global worry. Affordable packets will therefore be crucial in our industry, he continued.

The Confederation of All India Traders (Cait) stated on Friday that it anticipates consumer spending to reach $3 trillion this holiday season, up from $2.5 trillion last year.

Fast-moving consumer goods (FMCG) sales data from September from retail technology platform Bizom showed robust pre-festive stocking, particularly in rural regions. Sales of FMCG increased by over 5% in September compared to the same month last year, but they decreased by 2.3% for the September quarter. Lower demand for branded goods and beverages primarily contributed to the quarter's sales growth being negatively impacted. Sales of home care products increased, while stores stocked up more on confections and packaged meals, according to Bizom.

Early indications from Durga Puja purchases, according to cosmetics company Sugar, have been good. The company anticipates the trend to last the rest of the season.

East India, where pujo shopping has begun, has experienced three fantastic days. The similar holiday rush is anticipated to hit the north and west during the following three weeks, then the south in November and December, according to Vineeta Singh, co-founder and CEO of Sugar Cosmetics.

On the durables front, experts at Jefferies reported that September's demand for white goods increased from August's. "Channel inspections show increasing month-over-month demand from July to September (2023). The 15th of August saw strong sales. The majority of merchants are optimistic about the forthcoming holiday season. Inventory for extra air conditioner channels has already been sold. The majority of other products had typical stocks, they added, noting that preceding months experienced a decline in customer confidence.

Onam sales were strong, according to Kamal Nandi, business head and executive vice-president of Godrej Appliances, with luxury sectors like air conditioners and frost-free refrigerators performing well. With Durga Puja, Navratri, and Dussehra in October and Diwali in November, he continued, "we are hoping for the momentum to continue."

But there are worries that the unpredictable monsoon this year would impact rural demand, he continued. 

Unseasonal rains affected the first quarter of this year in various regions, according to Nandi. "The unequal and deficient monsoons may have a greater geographical impact in some areas than in others, and the inflation that results may have a greater impact in rural communities. The mass segment and upmarket territories are still struggling, but the premium category is still doing well," he continued.