The ongoing festive season sales have brought joy to the consumer goods industry, with early indications from all channels pointing to strong sales. The Confederation of All India Traders (CAIT) anticipates an infusion of up to Rs 2.5 lakh crore into the market through sales and services. Sales of various products, including TVs, home appliances, FMCG food and non-food items, and apparel, have seen an 8-10% volume growth compared to the previous festive season, showcasing consumer willingness to spend despite inflation concerns.

The festive season sales, spanning from Onam to Diwali, have seen encouraging signs, prompting CAIT to project a substantial boost in the market. The recent 4% increase in dearness allowance (DA) for 4.18 million central government employees and 6.97 million pensioners, along with productivity-linked bonuses for non-gazetted railway employees, is expected to act as catalysts for increased consumer spending.

CAIT Secretary General Praveen Khandelwal emphasizes the positive impact of these government decisions on the economy, anticipating a significant influx of funds. The consumer electronics and appliances industry has experienced a pickup in sales, particularly in LED TVs, washing machines, and refrigerators, with expectations of 8-10% volume growth and 25-30% growth by value.

Dabur India’s Executive Director-Sales, Adarsh Sharma, anticipates an improvement in consumer sentiments as the festive season peaks, with a focus on food and beverages and personal care driving demand growth. Bikano Director Manish Aggarwal reports a surge in sales and expects continued growth until Diwali, expressing optimism for the company’s gifting demand.

The Retailers’ Association of India (RAI) notes a 21% growth in retail sales in September 2022 compared to pre-pandemic levels in September 2019. RAI CEO Kumar Rajagopalan expects this festive season to mark a return to a cheerful atmosphere, reflecting a sense of fulfillment of aspirations and luxurious cravings.

Super Plastronics Pvt Ltd (SPPL), holding licenses for international brands like Blaupunkt, Thomson, Kodak, and White-Westinghouse, reports significant growth. Thomson, in particular, has seen a growth of over 100% this festive season, with high demand for large-screen TVs and front-load washing machines.

Despite the positive trends, concerns exist, with CEAMA President Eric Braganza noting that sales in the entry-level mass segment are not picking up as expected. While the average selling price is rising, the numbers are impacted in rural areas.

BNP Paribas India’s report on consumer durables acknowledges a tapering of demand after the festival season began with Onam. However, the report expects softening raw material prices to provide some cushion to brands, allowing for potential discounts to attract customers.