Diwali brings great cheer to the Indian retail market! From gold jewellery to white goods and the automobile sector, Diwali and Dhanteras festivities have propelled increased consumption across different categories. A surge in low-ticket purchases is a welcome sign for Indian manufacturers and retailers. Robust demand has been reported from Tier-2 and Tier-3 cities, alongside metros.
Automakers and FMCGs delighted as festive demand soars high
Automakers across different states are reporting robust festival demand and indicate Dhanteras and Diwali as having established exceptionally strong retail performance in the two and three-wheeler segments.
A leading homegrown FMCG, in its post-Diwali statement, has shared that it is already witnessing “very good” recovery in rural markets and expects this pattern to continue due to inflation dipping alongside the cooling of commodity prices.
Retail markets cheer Diwali sales
Recent estimates shared by the Confederation of All India Traders (CAIT) indicate that the country’s retail markets registered a historic high of ₹3.75 lakh crore, and this momentum is forecasted to continue for the upcoming holiday season as well. The government e-Marketplace (GeM) achieved a whopping ₹2 lakh crore gross merchandise value in the eight months of the current fiscal year. This is further attributed to the increased buying activity by different departments. Consumer sentiments are at a historic high across diverse sectors.
A striking trend this Diwali has been that mostly only Indian products were purchased this festive season. In previous years, Chinese products had enjoyed considerable popularity with Indian consumers, thereby occupying about 70 percent of the retail market during Diwali festivities. On the day of Diwali, the sale of flowers and fruits across the country has been pegged at ₹5,000 crore and ₹2,000 crore, respectively. A notable surge in consumer preference for locally made items marked a significant change in this festive season. Clearly, the ‘Vocal for Local’ sentiment has resonated with consumers this festive season.
Latest Retail Trends Indicate Robust Consumer Demand
For insurers in India, good retail trends provide a clear opportunity to promote InsurTech solutions that meet customer requirements and lifestyle preferences.
As Indian consumers show great demand for health and lifestyle products, companies are also witnessing tremendous demand for smart accessories, particularly smart watches, fitness trackers, wearable technology, etc. ETRetail, in its digital news report, cites that India witnesses a monthly demand of 5 million smartwatches!
The positive outlook for the retail segment pegs a triple-digit year-on-year expansion spanning the next 3 years. With the current competitive landscape evolving to meet real-time consumer preferences, companies can focus on innovating for festive occasions by tracking these buying trends for the upcoming New Year season.