Shoppers in India have started flocking to the stores since September as they gear up for the most keenly awaited festive season of the year.
But the pandemic has changed how people are shopping so that, although businesses in the consumer durables sector are beginning to return to pre-pandemic levels, demand for such goods as dishwashers, ovens, toasters and grills (OTG) is also enjoying a rise.
Chains such as Vijay Sales, Croma and BlueStar say they experienced good demand in September. Nilesh Gupta, managing director of Vijay Sales, which sells electronics and consumer durables, told Sputnik, “Overall we have witnessed a sales growth of 20-25 percent in the month of September this year, over the same month in the previous year.”
B. Thiagarajan, Joint Managing Director of Blue Star, a leading air conditioning and refrigeration business said to Sputnik that although demand in his business fell by almost 50 percent between April and June during the national lockdown, it picked up from July onwards. “Between October and December we expect 90 percent of the pre-pandemic demand to be restored and in the July to September period, we saw 80 percent of pre-Covid demand,” he added.
Nilesh Gupta of Vijay Sales said that at his chain, the highest demand has been for "large-screen televisions and laptops" adding that sales for OTG Ovens "have doubled on September last year".
“We have witnessed a 20-25 percent rise in demand for microwaves. Also, dishwashers are suddenly in demand because of Covid-19. From almost zero demand for dishwashers earlier, we are experiencing a good growth,” he said.
Ritesh Ghoshal of consumer electronics and durables brand Croma said on a local news channel that demand in India's smaller towns was exceeding that in the large cities.
“The spurt in demand for laptops is because of working from home. Also, people prefer large-screen smart televisions to experience an over-the-top platform at home.
“Also, even though lockdown is in the past, people are opting for high-capacity fridges to store a larger amount of provisions. And because schools are shut and the children are at home, there's been a surge in OTG ovens as prefer buying items such as pizza and cake at home," Ghoshal said.
Thiagarajan of Blue Star said that one of the reasons shoppers are making a beeline to consumer durables is because people are now spending more time at home so want to make it all more comfortable. “That’s why home expansion is taking place, boosting demand for air conditioners, washing machines, and smart televisions, among others,” he said.
“Also, as people have spent so much time at home this year, they haven't spent as much as they have saved on travel and vacations. That money is essentially bringing the recovery back in the consumer durables segment,” he added.
However, Gupta of Vijay Sales, said that shoppers are still taking advantage of the easy finance that is readily available.
“50 – 70 percent of our sales happen on an equated money installment (EMI) basis. That trend continues,” said Gupta adding that the Government's recent pledge that it will give those who are working a festival advance of 10,000 rupees ($137) will also help boost consumer demand.”
“At least 35 million central government employees are expect to benefit from the move and will account for almost $547 million of consumption in the economy,” he added.
India’s Gross Domestic Growth fell by 23.9 percent in the quarter from April to June because of the stringent safeguards taken to resist the spread of the coronavirus.
The national lockdown was imposed by the government on 25 March this year and remained in force until May. Since June, restrictions have been relaxed gradually.
Amazon, Flipkart to Kick-Off Mega-Festive Sale This Week
To add zest to the festive season, the e-commerce platforms will also kick-off their mega annual sale this week.
Players such as Amazon and Flipkart make huge discounts every year just before the festive season.
Amazon's Great Indian Festival and Flipkart's Big Billion Days sales will be launched this week with great deals and large discounts for a range of products.
Despite the pandemic, online retailers are betting big on the festive season and have also allowed shoppers a preview of some of the deals which will be on offer.