The tech and durables (T&D) sector recorded a 13 per cent value growth during the four-week festive season (Weeks 40-41: Sep 30-Oct 13, Weeks 42-43: Oct 21-Nov 3), on the back of heightened consumer demand across multiple categories, stated to the latest weekly insights from GfK intelligence. A report released by NielsenIQ said that categories such as large appliances, panel televisions, smartphones, and laptops have seen notable growth, with some products exhibiting stronger performance.
Anant Jain, Head of Customer Success – Tech & Durables, NielsenIQ, said, “The sales during the combined period of week of Diwali & a week prior (21Oct- 03Nov) accounted for 60 per cent of the festive sale. However, the growth over previous year was higher for the combined period of Navratri and Dusshera (30 Sep-13 Oct) than Diwali period.
Interestingly, the report added, despite Diwali being the single largest week in sales volume, the highest growth was recorded in the week leading up to Diwali which could be due to weekend and promotional offers before the festival. This contrasts with the Diwali week itself, which did not see an increase in growth when compared to the previous year.
“This suggests a shift in consumer buying patterns, with early shoppers driving the bulk of growth during the festive season this year,” Anant Jain added.
Category Dynamics and Consumer Behavior:
1. Smartphones: Smartphones were the largest category, driven by growing consumer interest in 5G devices. The segment that saw the most substantial growth was in the Rs 10,000- Rs 15,000 price range. The rise of affordable 5G smartphones, combined with attractive consumer offers, led to an upswing in demand, the report added.
2. Air Conditioners: Air conditioners, particularly split inverter models, saw growth, driven by consumer demand for energy-efficient and cost-effective options. The festive season witnessed a continuation of this trend, with AC sales growing three times faster than the overall sector.
3. Laptops: The laptop market showed resilience, with a significant boost in sales during the festive period. While the category had been under pressure for much of the year, festive offers, particularly around gaming laptops, led to a 22 per cent category growth. Gaming laptops, which grew by more than 50 per cent, were a key driver of this growth, the report added.
4. Refrigerators and Washing Machines: Both refrigerators and washing machines exhibited steady growth, with the smaller refrigerator segments—such as bottom-freezer models and three-door side-by-side (SBS) variants—recording growth exceeding 30 per cent. These categories experienced similar growth during both the Navratri-Dusshera and Diwali periods, indicating consistent consumer demand.
5. Panel Televisions: While televisions remain an essential category during the festive season, panel televisions experienced the least growth during this period. The Diwali week, in particular, saw a dip in consumer interest, with sales decreasing by 10 per cent compared to the previous year’s Diwali week.
Growth Drivers
Per the report by NielsenIQ, several factors contributed to the strong performance of the sector during the festive season and the key drivers included:
Innovative Product Features: Consumers showed increased interest in products with advanced features offering convenience, enhanced performance, and greater energy efficiency.
Special Offers and Discounts: The widespread promotional offers, discounts, and festive schemes provided by manufacturers and retailers played a significant role in driving consumer purchases.
Shift Toward Premium and Niche Products: Certain premium products, such as gaming laptops and advanced air conditioners, saw higher growth due to the increasing demand for aspirational products with innovative features.
Outlook
“As India’s festive season continues, market trends indicate that the Tech & Durables sector is likely to maintain its upward trajectory, buoyed by consumer interest in innovative, high-quality products,” said Anant Jain, Head of Customer Success – Tech & Durables, NielsenIQ. The report stated that categories like smartphones and air conditioners are expected to continue their growth, driven by technological advancements and ongoing consumer demand for modern, efficient appliances.
The festive season has demonstrated the resilience and dynamism of India’s Tech & Durables sector, with consumers increasingly willing to invest in products that offer both practical utility and aspirational value. As we move into the remainder of the year, it is expected that these growth trends will continue to shape the future of the sector, it concluded.