Festive Sales Surge Over 20%, Appliances Lead the Charge

Consumer spending experienced a significant uplift during the recent Navratri-Dussehra festive period, with sales of apparel, footwear, and various consumer durables climbing by more than 20% year-on-year. This surge was largely attributed to the increased availability of accessible financing and extended equated monthly installment (EMI) schemes. Home appliances, in particular, demonstrated robust performance, with air conditioner sales skyrocketing by over 50% due to higher-than-normal temperatures in certain regions. Refrigerator and washing machine sales also reported significant growth, exceeding 20% for many brands.

In contrast, the automotive sector saw a more modest 2% increase in car retail sales, influenced by a high base from the previous year's post-GST rate cut buying spree. Two-wheeler sales, especially scooters, also performed well. However, the market for smartphones, laptops, and televisions faced volume pressure. This was primarily due to a two-to-three-fold increase in memory chip prices, leading to significant price hikes that pushed these products beyond many consumers' budgets. Online and offline smartphone unit sales saw a decline during this period.