Diwali is certainly the most awaited festival of the year. This is also a time when people don’t mind spending extra and go liberal on their buying spree. Retailers understand this sentiment well and announce deals and offers with open heart. But, this time economic gloom is running high on Indian economy. In recent months rupee has fallen drastically against the dollar, and worst hit is the pocket of common man. Moreover, a report generated by ZyFin Research states consumer sentiment in India hits the lowest since October 2011 as India heads into the festive season. In this delicate situation, let’s see what retailers are expecting from this festive season
Retailers are hopeful
Overall, the rupee depreciation has not upset the festival shopping plans of many buyers as the festive mood gives all the people a reason to celebrate and cherish.
“Rupee devaluation has certainly hit the economy hard but festivals are about tradition and celebration, so probably the expenditure will be comparatively lower than last year but the impact will not be enormous.” says Sandeep Arora, MD, Evok. He also highlighted that even if the year does not see steep increase in demand in this segment overall the industry is moving at a definite pace.
He also shares that we have adopted a strategy of manufacturing a range of products in India itself considering the poor economic situation. This has resulted in reducing the inventory cost for him along with growing margins. He also added that the products which cannot be designed are imported from foreign countries and are being well-received by the customers.
Speaking on the same, Aditya Gupta, Founder, The Furniture Republic said, “We don't expect more than 10-15 percent impact on the industry overall.” Speaking on strategies, he added “Our promotional strategy has always been to offer the customer global class and choice at the right price and we believe our product is our best publicity. We obviously use billboards, social media, e-commerce channels, and special offers etc to build the momentum.”
T Sudhakar Pai, MD, Kurlon Ltd shares, “Festival season helps us to generate 20- 25 percent of the annual sales during this period .And we expect the same this year.”
Taking it further, Divya A Bhasin, a prominent jewellery designer highlights that apart from festive season, it is also a tourist season in India and overseas clients are the feeling good with the current situation and being the tourist season, I don’t see much difference in sales.
Expected turnover for this season
Almost every retailer is expecting growth from upcoming Diwali festival. Sandeep Arora from Evok shares,” We are expecting 40-45 percent growth during this festive season.” Aditya Gupta, shares, Diwali is much celebrated for Indians, It is definitely unlikely that pocket gets tightened; however, we don't expect more than 10-15 percent impact on the industry overall.”
Aspirations are certainly high, but rupee has depreciated enough to hit corporate budgets along with the house hold, which is more than enough to mar festive spirit. A report generated by Assocham states severe slowdown in the Indian economy has put pressure on earnings, while inflation is set to rise amid a sharp depreciation in the rupee. In this circumstance, it is to ask shall we still keep our hope alive? Guess, time will only answer.