Getting A Grip On Consumption In The Festival Season
Dussehra represents the big acceleration period in consumer spending which began in different parts of the country earlier, depending on the observance of festivals. It is a common occasion for all people, as it is considered auspicious for buying gold, homes, and vehicles. This can also percolate down to home appliances and kitchenware and would play out fully by Diwali time. This mood carries…
Dussehra marks a significant surge in consumer spending across India, with the festival season serving as a catalyst for purchases of gold, homes, vehicles, and various home appliances. This positive trend extends into the final quarter of the year as retailers offer discounts to boost sales. According to a recent survey by the Retailers Association of India, consumption growth has been encouraging, with an overall increase of 7.2% from April to August.
However, regional variations are evident, with the western region showing the highest growth at 8%, followed by the southern region at 7.6%, and the northern region at 7.4%.
Footwear and apparel sales are experiencing notable growth, driven by the current working class' inclination towards dining out and a surge in product offerings from the food and grocery segment. The growth in electronics and consumer durables is steady, with double-digit growth expected by the end of December. The two segments underperforming are jewellery and beauty products, likely due to factors such as price fluctuations and a potential decline in rural demand.
Risk factors, including rising inflation, weaker rural demand due to drought in several states, and a potential slowdown in spending power among lower-income groups, may impact overall growth. The urban-rural distinction and income category differences will also play a role in shaping demand patterns during this festival season.
Written by urgent.news from Free Press Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
