Discretionary spending on electronics, which dropped after demotion in November 2016, seems to have been reflected, courtesy factors such as the e-commerce discount, GST cuts to more than 50 goods in July, and deeper penetration of consumer finances.
Sales of consumer electronics and white goods rose 12-15% from the previous year, The Economic Times reported. Last Diwali recorded sales as a result of price increases after the introduction of GST, but things are significantly different over this period. Total TV sales rose 12-15% thanks to Diwali with online gamers such as Xiaomi, TCL, Vu, Thomson, BPL and Sanyo, who manage sales in 32-43 inch TVs and demand for Samsung, Sony and LG for bigger – screen TVs.
Significantly, Indians buy not only white goods but also spend more. In the Croma joint retail chain at Tata, the average size of the ticket was reportedly increased by 29%, with a total festive sales leap of 61%. Surviving daily traders added that the return of consumer discretionary spending was backed by EMI's easy availability without costs, enabling consumers to upgrade their purchases.
Nilesh Gupta, director of Vijay Sales, told daily that consumers were buying more than the value this year, with an average billing figure rising by 2,000 RPS despite price declines. "Revenue for the same business rose 5% despite the impact of online discounted revenue from the sale of television stations and smartphones," he added.
According to Sony India, MD Sunil Nayyar exhausted the 55-inch TV channel before Dhanteras. He said the sale of large-format models in the price of lakhs rose between three to two times as compared to the last Diwali when Sony fulfilled its 20% revenue growth target.
In the meantime, LG India reported that it sold out side-by-side refrigerators at prices between Rs 80,000 and Rs 5 lakh with a doubling of sales, up 50% by 300 liters plus refrigerators. Sales LG 4K and OLED TV – Sales from Rs 58,990 to Rs 30 lakh – increased three times.
Godad Appliances director Kamal Nandi said that the holiday season – including Onam, Durga Puja, Dussehra and Diwali – saw a 7% increase in appliances sales despite the floods in Kerala, increased fuel prices and negative sentiment in the rupee to dollar ratio. "Premium sales led sales, including for entry and market products, with prices down 4% over the summer," he added.
Interestingly, funding has contributed over 80% of purchases in this festive season versus 60% last year. In spite of smaller non-bank financial companies that have avoided loans due to the ongoing liquidity crisis, consumer long-term loans have easily become available as large credit providers such as ICICI Bank, HDFC Bank and Kotak Mahindra Bank have shifted to fill a gap. In fact, Kotak Mahindra Bank recorded a year-on-year increase in card transactions of 30% – with higher growth in the 2nd and 3rd cities and UPI transactions by 300%.
The same trend was seen in the field of e-commerce. A spokesman for Amazon India said customers bought more premium products this year, and EMI's transactions increased twice in the past year. In addition, 70% of customers who used this option came from Class 2 cities and the credit certification for customers increased 19 times.
(Edited by Sushmita Choudhury Agarwal)