Festive Season Sale: Festive stockpiling boosts consumer goods sales in September

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Consumer staples sales from legumes and edible oils to refrigerators and smartphones improved sequentially in September after falling in August, according to the latest data from market trackers and industry estimates. This has raised business expectations for buoyant demand during the holiday season, the peak sales season in India.

Everyday and essential grocery sales rose 1.1% in September and reversed the trend last month when they fell 14.5%, according to Bizom, which tracks 7.5 million retail stores across the country . The month-on-month growth was mainly driven by commodities as kiranas stocked up more staples and edible oils in anticipation of strong festive demand.

The categories also grew in September compared to the previous year (yoy). According to Bizom, FMCG sales increased 29.7% year over year. In household appliances, the growth in sales volume was 2-3%, if you consider that the pent-up demand continued into September last year, the industry estimates.

The volume growth for smartphones is 4-5%. In 2020, the new iPhones were launched later in October. The year-on-year increase in the value of electronics and smartphones will be higher in September, partly due to a price increase of 10-15%.

According to industry estimates, home appliances saw volume growth of 5-8% in August, driven by sales during the Ganesh Chaturthi and Durga Puja shopping, with companies launching early promotional offers, although sales in the north were subdued due to the Shraadh period. The growth could have been more without product shortages, companies said. Smartphone dealers said September was better than August, led by new launches including premium models like Apple’s iPhone 13 series and Samsung’s Galaxy Fold and Flip phones.

“Disruptions in the supply chain in mind”

For fast-moving consumer products, demand has been led by hotels, restaurants, and caterers as well as end users as September is a time when they see overstock for the two-month holiday season, said Angshu Mallick, CEO of Adani Wilmar, which owns the Fortune and Aadhar owns.

“Consumers also fear supply chain disruptions or shortages of these vital items and would prefer to load their pantries early, which could also result in a slowdown in November,” he said.

While personal care products and packaged foods grew by 7% and 10% over the month, respectively.

“The control measures imposed by local government administrations during the festivals will be key to encouraging FMCG consumption as India walks the tightrope between celebrating festivals and controlling the pandemic,” said Akshay D’Souza, Head of Growth and Insights at Mobisy Technologies, on the Bizom. and adds that there is increased traction in confectionery and beverages due to the stocking of gift wrap.

Positive indicators

CEOs said consumers are waiting for the big October Christmas sales. Amazon and Flipkart will start themselves this weekend, unlike previous years earlier, and all indicators are positive for good sales in the next two months, they said. This despite price increases in categories such as electronics, laptops and smartphones.

“Consumer sentiment, the macroeconomic indicators are good, as are Covid indicators, which are based on high vaccinations and a low infection rate. The chances that the third wave will affect the economy are slim. So the recovery in September bodes well for the Christmas season, ”said Kamal Nandi. , Managing Director at Godrej Appliances.

Value outperformed volume in September, said Deepak Bansal, vice president of corporate planning for LG Electronics, India’s largest manufacturer of home appliances.

“We grew sales 10% year over year, led by more premium products and price increases,” he said.


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