Despite a slowdown in consumer spending this year, the 22-day festive period, which began with Dussehra and ends with Dhanteras in mid-November, is expected to see 25% increased consumer spending. Between consumer durables, jewellery, corporate gifting and chocolate companies, marketers have already fixed their sales targets of generating in excess of R15,000 crore in the October-December quarter. As per the latest survey by industry body Assocham, corporates are expected to shell out R3,200 crore towards corporate gifting this Diwali.
Durable majors, including LG India, Samsung, Panasonic, Sony, Phillips, Voltas and others are hoping to sell goods worth R11,000 crore in the third quarter of 2012-13, a growth of 15-20% over the same period last year. Both Samsung and LG India expect a 25% growth in consumer spending on durables this Diwali. Others like Sony, Phillips, Videocon aim at 25-30% growth. In value terms this simply translates into a per day average sales of R170 crore (Oct-Dec) as opposed to an average daily sales of R125 crore (Jan-Sept).
"Based on sales, the consumer durable industry size is pegged at around R45,000 crore. Around 30-35% of the sales happen in a short period of 90-days falling in October to December. And this is the reason the markets are flooded with festive offers, luring consumers to spend," says a senior analyst who tracks FMCG and consumer durable companies.
India's largest retailer Future Group, which operates lifestyle chain Pantaloons and supermarket chain of stores Big Bazaar, among others, is expecting this festive season to be
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