Kolkata|Mumbai: Diwali festivities don’t seem to have ended for some top brands and retailers. They say demand for television sets, appliances, laptops, smartphones and apparel continues to be brisk in the post-Diwali period, unlike the past, when sales would fall drastically immediately after the festive season. Top brands and retail chains such as LG, Samsung, Apple, Vivo, Realme, Bosch, Siemens, Croma, Levi’s, Reliance Retail and Vijay Sales expanded sales 10-20% in the first 15 days after Diwali, which was in mid-November, over the year earlier, according to estimates by senior industry executives.Apparel brands and retailers said sales have recovered further since Diwali due to early onset of winter, persistent pent-up demand and improving supplies. This has allowed consumers who had to postpone purchases during Diwali to buy what they wanted. Continuation of Diwali and other promotional offers — such as Black Friday — as well as consumers spreading their spending across two months, instead of buying at one go, has also helped. 79521607Need-based Purchases“More than festive spirit, purchases during this Diwali have been need-based, and that momentum is still continuing,” said Nilesh Gupta, director at Vijay Sales, which runs more than 100 electronics stores. “We expect it will continue even in December, which is why we are stocking up on inventory, just in case there is a shortage again.”Sales are up 20-25% on-year since Diwali amid sustained demand and brand promotions through December, said Vijay Babu, vice-president of largest appliance maker LG India.A Realme India spokesperson said the brand has grown smartphone sales by about 10% since Diwali, attributing this to pent-up demand driven by ecommerce.Neeraj Bahl, chief executive of BSH Home Appliances India, which makes Bosch and Siemens appliances, said post-Diwali sales are up 50% from the year earlier, which ensured doubling of overall business in November. “Consumers who didn’t venture out during Diwali to avoid crowds in stores due to Covid-19 are now out and so are people who didn’t get the stock then,” he said.Smartphone and electronics companies said they have been maintaining production at the same pace after Diwali, unlike earlier years, when output declined sharply due to the sales lull. Demand exceeds supply for Apple’s iPhones, iPads and Mac computers. Vivo has received its highest response to pre-booking for its affordable flagship smartphone, the launch of which has been advanced by a week to Wednesday due to the surge in demand. Realme and Oppo are also rolling out new devices.BSH got 1,000 units of its premium refrigerator — priced upwards of ₹80,000 — just after Diwali, all of which were sold out in 10 days. Ritesh Ghosal, chief marketing officer of Tata-owned electronics and smartphone retail chain Croma, said there has been a 30% growth in sales after Diwali over last year, compared with the pre-Diwali bump of 20%. He said the maximum demand is for refrigerators, washing machines, laptops and big-screen TVs. MALLS, APPAREL RECOVERY Consumers are buying more regularly and consistently, instead of just concentrating on a few big events, according to Sanjeev Mohanty, managing director, South Asia, Middle East and North Africa, Levi Strauss & Co.Yogeshwar Sharma, chief executive of Select CityWalk mall in Delhi, said the gap between Diwali and Christmas has narrowed this year, and brands have blurred it with discounts and offers.“Every year, consumers also spent on movies released during Diwali or eating out, but with no mega releases, it was all about shopping. Also, events like the Black Friday sales helped continue the momentum of discounts,” he said.Fitch Group-owned India Ratings and Research said apparel retailers will touch almost 80% of pre-Covid sales in the October-December quarter driven by pent-up festive and wedding season demand even as distancing norms and a slowing economy continue to be a drag. October and November saw meaningful recoveries with a monthly run rate of 75% to 85% for apparel, it said.Most smartphone and electronic brands had reported their best festive season sales this year with business growing 20-30% over last year as consumers bought the latest gadgets to feel better and help with work, study or entertainment at home besides automating domestic chores.
from Economic Times https://ift.tt/3luCd8Y
No comments:
Post a Comment