The crucial Dussehra period of the ongoing festive season has been sluggish for durable retailers, with chains seeing year-on-year sales growth of around 6-7% this weekend. This is lower than the 10-15% growth levels seen during the same period last year.
From the Dussehra period till around Diwali, shopping is expected to be at its peak. While the Dussehra period has begun slowly this year, retailers hope for signs of improvement closer to Diwali.
“There have been footfalls in stores in the run-up to Dussehra, which has led to sales conversions,” said Nilesh Gupta, director of consumer durables retailer Vijay Sales. “This Dussehra weekend, sales growth has been 6-7% versus last year. For the upcoming Diwali season, we are hoping for a 10% y-o-y sales growth,” he added.
Brands such as Panasonic, Haier and Godrej Appliances, however, claim that the sales growth has been around 20-30% during the Navratri-Dussehra period versus last year, led by premium products.
On the other hand, Dussehra releases, including Alia Bhatt’s Jigra, have failed to light up the box office this weekend, though Rajinikanth’s Vettaiyan, also starring Amitabh Bachchan and released in regional and Hindi languages, has done well in the southern markets.
Apparel sales, meanwhile, clocked a y-o-y growth of around 7-8% during the Navratri-Dussehra period, which came after a difficult first half this financial year. Some apparel retailers say they are seeing double-digit growth of around 13-14%, led by pent-up demand and the upcoming wedding season, which kicks off after Diwali.
“Apparel sales have been better than last year, which is a relief. Overall sales growth has been in double digits, led by pent-up demand and the need to shop for the festive and wedding season,” Devarajan Iyer, executive director & CEO at department store chain Lifestyle India, said.
Experts point to the growing trend of travel and tourism for the sluggish festive retail sales this year. Also, consumers, especially at the entry-level, say retailers, have been disinclined to open their purse strings as they remain focused on essential rather than discretionary purchases. In cities, quick commerce is leading to instant gratification, pushing down the need for occasion-led shopping.
According to Unicommerce, e-commerce sales saw a healthy uptick of 16% in the first 10 days of the ongoing festive season versus last year, led by categories such as home decor, travel accessories, and electronics and gaming accessories. The gross merchandise value (GMV) also saw an uptick of 17% in the same period, it added.
The trend of premiumisation also continues to be strong, both online and offline, say experts, as consumers look to uptrade using easy financing schemes.
“Consumption remains bullish for premium appliances, with higher average-selling-price products doing well,” said Fumiyasu Fujimori, managing director, Panasonic Marketing India.
“Products ranging from four- and five-rated ACs to frontloading washing machines, microwaves with convection and insta-cooking features, bottom-mount refrigerators and 4K LEDs with large screens have all done well during the ongoing Navratri-Dussehra period,” Fujimori added.
Film exhibitors are hopeful of audiences making their way back to theatres as the Diwali season nears. Movies such as Bhool Bhulaiyaa 3 and Singham Returns will be released in November, while Vicky Kaushal-starrer Chhaava and Pushpa 2 will be in cinemas in December.
“The second half of the year certainly promises to be better than the first half,” said Amit Sharma, managing director, Miraj Cinemas, which has 200 screens across 62 theatres in 42 cities within India.
“The October-December period has a number of big releases, both in Hindi and regional languages, timed with the festive and wedding season. Hopefully, audiences should make their way back to theatres,” Sharma added.