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India's Festive Sales Hit 5-Year Peak!
15 Sep
Summary
- Consumer demand reached a five-year high during India's festive season.
- Sales growth occurred despite multiple price increases across categories.
- Automakers and home appliance sectors reported record-breaking festive sales.
Consumer demand in India has reached a five-year peak during the initial phase of the festive season, encompassing Onam, Rakshabandhan, and Ganesh Chaturthi. This surge in sales across home appliances, automobiles, and apparel has occurred despite several price increases, underscoring significant consumer optimism.
Home appliance sales, including refrigerators, air-conditioners, and washing machines, saw a 12-15% volume increase year-on-year, with value sales growing 18-23% due to price hikes. LG Electronics reported strong growth, particularly in large-screen TVs and premium appliances.
Automakers also recorded substantial festive sales, with Maruti Suzuki and Hyundai Motor India reporting significant year-on-year retail sales increases. Car dealers noted a 20% rise in retail sales, anticipating continued momentum.
The positive trend extends to retail and e-commerce, with Lifestyle stores reporting double-digit growth and Flipkart's quick commerce business seeing a 2.5-fold increase in sales during Ganesh Chaturthi. Consumer finance is increasingly utilized to manage price hikes on electronics and vehicles.
Despite inflation, the overall market sentiment has improved across all tiers of cities. While the mass segment faces challenges from rising prices, the premium segment is performing well, supported by expanded retail and e-commerce penetration.
