In High Spirits
Demonetisation and GST have not deterred the consumers from spending big bucks this festive season
With the festive season kicking in, the industry is abuzz with excitement. Some reports earlier suggested that spending would be muted this season. BW Businessworld’s own investigation, however, finds no cause for pessimism. Sectors that were cautiously optimistic earlier are now anticipating good sales growth – from FMCG, consumer electronics, auto, real estate, gems/ jewellery, e-commerce to furnitures among others are all looking to earn the big bucks. While the likes of Flipkart, Snapdeal and Shopclues, and Amazon are projecting spectacular growth patterns, for fashion portals, the business has become a bit sluggish in the aftermath of the GST.
From handbags to smartphones to jewellery to edibles to consumer durables and more, the online gentry is creating new buying records every day. The real estate sector is expected to show signs of recovery. With offers from a plethora of players in the market, buyers are lured to invest in a market that slowed down post demonetisation. It has picked up since then, with the real estate developers now showering customers with exciting gifts and unheard of discounts.
As per SIAM data, four out of the top 6 automakers in India registered double-digit growth in September sales, with strong demand around Navratri and Diwali. Another industry that is expecting huge sales is the gems and jewellery. Jewellers are expecting a 20-30 per cent rise in sales this Diwali as the market sentiment has become positive after government decided to do away with KYC requirement for cash purchase of gold of Rs 50,000.
On the e-commerce front, the festive season has continued to be pocket-friendly as e hubs such as Myntra, Amazon and Flipkart continue to offer discounts, marketing strategies and activities to lure consumers. Amazon has continued to see tremendous momentum with an overall growth at about 85 per cent in Q1 and 88 per cent in Q2 in 2017. Despite the debates on GST, the new tax reform or the after effects of demonetisation have not stopped the consumers from doing their job – to shop!