Anticipated Boost in Festive Sales for Consumer Goods Industry 2023
Manufacturers and sellers of appliances and technological goods anticipate a significant increase in sales over the next holiday season in October and November.
According to executives at prominent durable firms, expectations are high following a successful Onam season in Kerala that saw sales rise of between 23-25% in electronics and home appliances.
Businesses anticipate sales to increase by at least 20 to 25 percent in October and November, when Dussehra and Diwali will be observed. Following two challenging quarters that were hampered by weather uncertainty, this will probably be the strongest period.
While unseasonal rains impacted cooling product sales from April to June, irregular monsoons from August to September affected rural demand.Â
However, senior executives indicated that from a demand viewpoint, metropolitan regions have been holding up nicely. In contrast to mass categories, which had mid-single digit increase (5–6%), frost-free freezers, automated washing machines, and split air conditioners all experienced year-over-year growth in the range of 25–30% during Onam.
The festive season in many parts of the world is not only a time for celebration and togetherness but also a significant economic opportunity for businesses, especially makers and retailers of consumer durables.
This time of the year witnesses a surge in consumer spending, with people looking to upgrade their homes, buy gifts, and make big-ticket purchases.
Consumer durables refer to a category of goods that have a relatively long lifespan and are typically not purchased frequently.
These include products like refrigerators, washing machines, televisions, air conditioners, home appliances, and electronic gadgets.
Due to their cost and durability, consumers often plan these purchases meticulously and consider them investments in their comfort and lifestyle.
The festive season, which usually encompasses holidays like Diwali in India, Thanksgiving and Christmas in the United States, and Chinese New Year in China, brings with it a slew of unique advantages for makers and retailers of consumer durables.
During festive periods, consumers are more inclined to loosen their purse strings. They have access to bonuses, promotions, and special offers, which often encourage them to make big-ticket purchases they might have been postponing.
The tradition of exchanging gifts is an integral part of many festivals. Consumer durables often make for thoughtful and valuable gifts. This trend can lead to a surge in demand for these products.
Festive seasons often involve house cleaning, redecorating, and renovation. This drives demand for home appliances, furniture, and electronic gadgets, as consumers seek to upgrade their living spaces.To capitalize on the festive fervor, makers and retailers typically roll out attractive discounts, financing options, and bundled deals. These incentives can nudge consumers toward making purchases.
Many companies choose this period to unveil new and upgraded products. These launches generate buzz and excitement, attracting consumers looking for the latest technology and features.
Festive-themed marketing campaigns are a staple during this season. Companies use multimedia platforms to reach their target audience and create a sense of urgency and excitement.
Makers and retailers need to ensure they have sufficient stock to meet the increased demand. Proper inventory management is crucial to avoid stockouts and delays.
Building strong customer relationships is essential. Providing excellent after-sales service, warranties, and extended maintenance plans can boost customer loyalty.
With the growing popularity of online shopping, makers and retailers have also expanded their digital footprint. E-commerce platforms offer convenience, and companies must ensure a seamless online shopping experience.
One of the most prominent examples of the festive boost for consumer durables is seen during Diwali in India. The “Festival of Lights” witnesses a massive surge in consumer spending, with people buying everything from gold jewelry to consumer electronics. Electronics and appliance companies like Samsung, LG, and Sony usually record significant sales during this period. They often run special Diwali promotions, including discounts, exchange offers, and attractive financing options to lure consumers.
Additionally, e-commerce giants like Amazon and Flipkart roll out their own Diwali sales, showcasing a wide range of consumer durables. This has led to intense competition, benefiting consumers who can compare prices, features, and reviews before making a purchase decision.
The festive season is not just a time for celebration but also a golden opportunity for makers and retailers of consumer durables.
Increased consumer spending, gifting culture, home improvement projects, and festive discounts all contribute to a surge in demand for these products.
By employing effective marketing strategies, maintaining proper inventory, and focusing on customer engagement, businesses can make the most of this season and ensure a boost in their sales and profitability.
As consumers look forward to celebrating their festivals with new and upgraded consumer durables, companies gear up to meet their expectations and create a win-win situation for all stakeholders.
