IBEF: October 22, 2019
According to the retail chains and brands, there is 9-12 per cent increase in the sales of consumer electronics as far this Diwali compared to the flat sales during last year Diwali.
Brian Bade, CEO of Reliance Digital said that it's still early, but sale is better than the last year. Reliance Digital is India's largest smartphone and consumer electronics retail chain.
Bade added, "Half of the season is still left so no point being too optimistic. But as of now it's good growth. This year it’s been a good iPhone and OnePlus smartphone launches while other categories too are doing well."
A Mumbai's leading consumer electronic chain Kohinoor Electronics' director Vishal Mewani said there is 10-11 per cent growth in Diwali sales as of now as compared to flat Diwali sales last year. He said the chain has increased inventory level by 8-10 per cent than last year and is further beefing up stock.
He added, "Ecommerce sales have not been able to make an impact like last year. All large brands have also offered discounts for offline sales which too are better than last year, however it’s not only a discount-led growth. Consumer sentiments are better than last year and it’s improving on a day-to-day basis."
The leading chain in Eastern India, Great Eastern Retail director Mr Pulkit Baid said, "the retailer has grown sales by 12 per cent this festive season. Mostly premium and mid-premium products are doing well. The pent-up demand is fostering growth in the last two weeks of the season. If this continues till November, then we can for sure say there is a complete recovery in consumption."
Johnson Controls-Hitachi Air Conditioning India's chairman and managing director, Mr. Gurmeet Singh, said that the company has not faced any effect of economic slowdown this festive season. The sales have grown majorly driven by the premium inverter air- conditioners.
"Right from the very beginning of the festive season, we are witnessing the same enthusiastic sales that we usually do. In fact, there is an interesting and evident change in Indian consumer preferences, especially in consumer electronics purchases. Consumers' primary selection criteria are the latest technology, features, good quality product and warranty; their buying choices are not easily affected by discounts being offered," said Singh.
The crucial time for the sale of the white goods and electronic makers is the festive season which starts with Onam in Kerala, covers festivals like Navratri-Durga Puja-Dussehra, Karva Chauth, Dhanteras and ends with Diwali. This accounts for around 35-40 per cent of the annual sales of the companies related to these. This time it is more critical as the television sales have been flat between January to September while other home appliances have performed better but still growth is in single digit.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.