With Diwali round the corner, retailers are out in full swing to cash in on the last phase of festive fervour. Retailers across the segments are looking at festive season to seek respite from a dry spell of sluggish economy. Though ecommerce has started organizing sale events round the year, festive sale remains the buzzword among consumers. The ongoing festive season sales have turned to be the latest battleground for online and offline retailers to grab the top stop in this fast-expanding market.
Following are the key highlights of festive sale 2019…
Online Remains the Preferred Channel
Online (76%) and Malls (71%) continue to be the most preferred shopping channels for
consumers this festive season. In this race of online vs offline, few premium malls bag to differ, for them, Diwali is an opportunity to fetch more footfalls to mall. Speaking on same, Yogeshwar Sharma, ED, CEO & Executive Director at Select CITYWALK said “Economic downturn has impacted overall market, but not for us because we are sitting in the wealthiest colony of South Delhi. We have not seen any down turn. Moreover, government has taken many measures to uplift the consumer sentiments, I am sure it will bring positive results.”
Speaking on combating online sales, he said, “The advantage brick and mortar can offer touch feel experience and online can only offer discounts. We can create social gatherings also, this time we are spending more on mall decorations to bring people out of their homes and celebrate Diwali. So, this way we have an edge over e-commerce. Food, Café and casual dining are doing extremely well. Beauty and athleisure are upticking categories for us. We have seen slowdown only in high end watches and expensive gifting categories.
Mobile Wallets Seeing Down Turn
As per the study released by Retailers Association of India (RAI) and LitmusWorld indicate that consumers are resisting spending cash during the ongoing festive season with the preference dropping from 19% last year to 9% this year. Mobile Wallets and Net Banking modes of payment also show a downward trend with 5% and 3% respectively this season as compared to 8% and 6% respectively last year.
Consumer Durable Fast Picking Category
Alike to every year, fashion remains the dominating category. The second dominant category continuous to be Home Appliances and Electronics at 49% followed by Mobile Phones at 40% this year. The festive season is the biggest window for any electronics retailer. It is special as all Indians give their homes a facelift of some sort at this time. Whether it’s painting the home or upgrading to a Smart TV, this is the time of the year when the big bucks are spent. “Despite the slowdown in economy, the onset of the festive season has been great with Croma clocking in a growth of over 40% compared to the same period last year. We expect the momentum during the festive season to be even better. Compared to any other month, the festive month sees 2.5X growth in footfalls as well,” said Ritesh Ghosal, Chief Marketing Officer, CROMA.
Good Time Ahead for FMCG and Grocery
Consumers prefer to buy confectionary and other grocery items just before the Diwali, so this category is already picking up fast. In the month of June this year, Market research firm Nielsen has lowered its growth forecast for the fast-moving consumer goods (FMCG) sector to about 9-10% in 2019 due to economic slowdown.Devendra Chawla, chief executive of retail chain Spencer’s Retail hopes positive Diwali this time for the overall category growth.
Due to negative growth these days consumers tend to be more careful with their spending. As per (RAI) and LitmusWorld data 89% of Indian consumers are willing to shop during the ongoing festive season. Among that 26% of consumers are willing to spend from Rs. 15,000 to Rs. 30,000 and 23% looking at spending above Rs. 30,000 to Rs. 1 lakh.