KOLKATA: If buoyant sales on Diwali are anything to go by, it’s shaped up a cracker of a year for consumer goods companies. Be it retail, consumer electronics, mobile phones, personal computers, auto, apparel, furniture or liquor – all the sectors notched up more-than-expected sales, which marketers feel are sure-shot signs of consumer sentiments being back to normal.
The companies claimed the buoyant sales rally started from Onam in early September, rose through Durga Puja and Navratri, and reached its peak in Diwali. “This year, festive period sales have been a complete surprise. After many many months, we are seeing a real stability in demand,” said the country’s largest retailer Future Group CEO Kishore Biyani.
“And what’s interesting is that East and North topped national sales in the entire festive season,” said Mr Biyani. The group, which expects more than 30% sales growth this festive season, has notched up sales upwards of Rs 500 crores in the last ten days.
Lifestyle retail chains like Westside and Marks & Spencer Reliance India confirmed spending is up across the board. “Footfalls have increased and we are doing significantly better than last year,” said Westside marketing head Smeeta Neogi.
“We have seen a growth of 20%-plus over last year. The home section, which includes houseware, home decor and decorative items, has done particularly well,” said Marks & Spencer Reliance India marketing head Nandini Sethuraman. Other home solution chains like Godrej Interio and Future Group’s Home Town have also seen good sales for furniture.
Jeans major Levi’s India marketing director Shyam Sukhramani claims even the smaller towns have done phenomenally well. “Across India, we have done pretty well in terms of like-to-like store growth, with areas like Gujarat and South India far exceeding our expectations,” he said.
LG Electronics and Samsung, who together control the lion’s share in the Indian white goods market, said their festive period revenues this year has grown by near 40%. “While last year, the industry saw festive sales growing by 15%, this year it is around 22%,” said LG Electronics India director (sales & marketing) V. Ramachandran.
Samsung recorded over 100% growth in TV sales from Onam till Diwali, refrigerator sales by 60% and washing machines by 65%. “Total sales have upped Rs 1360 crore so far. The growth of premium products is back on track,” said Samsung India deputy MD R Zutshi.
Computer makers too are a happier lot, after witnessing a year-long slump in sales due to the recession. While market tracker IDC reported the Indian PC market grew by 5.2% in the April-June quarter, PC makers like Acer said sales growth has again touched 12%. “September has seen a huge peak and Diwali too has been good,” said Acer India chief marketing officer S. Rajendran.
A senior Nokia India official said the sales growth during the festive season is back to double-digit levels. This is as compared to the 5-6% sales growth the industry was witnessing for the last one year or so. “We are seeing sales back to normal since last week, led by promotional campaigns,” the official said.
The auto industry, which recorded 21% growth in car sales in September has seen equally buoyant October sales. “The festive season is an auspicious time to buy new cars. Considering the demand till Diwali, we expect sales in October to witness 20%-plus growth,” said Dilip Chenoy, director general at Society of Indian Automobile Manufacturers, the apex industry body.
Liquor brands are also upbeat. “The markets seem to be in a celebratory mood. Our sales across all brands including Teacher’s started picking up about three weeks before Diwali and gained momentum over the last two weeks. Even sluggish markets like Delhi and Karnataka have picked up. We are seeing a 25% year-on-year growth,” said Harish Moolchandani, CEO & MD (India and Indian sub-continent), Beam Global Spirits & Wine, the world’s fourth largest premium spirits company.
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- Consumer goods retailer Viveks can give a lesson or two to biggies
- Diwali Retail Sales Rocket To New Highs, Up Almost 80%
- Festive Season Sales Push Up Retail Targets
- Retail sector enjoys unexpected sales growth in September
- Retailers in X’mas spirit as shoppers binge
- Consumer caution prompts only small rise in high-street spending and big drop in new car sales
The blog certainly reaffirms the articles that one has been reading around the festive mood of buyers. One needs to really scratch below the surface to figure out the real reasons for the upswing in the sales figures that most retailers are boasting of. Sure enough that sales this festive season may have been far more than the preceding diwali. But is it because consumers delayed their purchase till diwali as it is common knowledge that there are great deals, offers etc. during this period. Calling this a revival of consumer confidence is a bit too early.