Contrary to expectations, electronic sales are in top gear this festive season, as per Vijay Sales. Due to the global semiconductor shortage, the Indian mobiles, consumer electronics and automotive sectors were supposed to see a glitch in meeting festive season demands but the electronics chain outlet, while speaking to CNBC-TV18 expressed optimism.
According to Nilesh Gupta, Director at Vijay Sales, the just-gone-by weekend saw strong footfall as Dussehra is around the corner.
We had excellent Sunday sales. In fact, beyond our expectations, I would say. Looking at yesterday's sale and this weekend, I think we can safely say that this is going to be one of the bumper Diwalis," he said.
"We just have to be careful and maintain all the COVID protocols but otherwise, I think with no third wave coming. Confidence has come back and people have actually come out to splurge. I think in the last two Diwalis they were held back and I think that all are showing in yesterday's sales," Gupta elaborated.
Air conditioner sales are going up because of the October heat in many parts of the country with the monsoon receding.
"Televisions (also) are doing excellent. Refrigerators, washing machines, appliances, mobiles too. I think there is no category that is not doing well. One category which is really springing up a surprise on everybody is watches. The digital watches, smart watches sales are going up,” said Gupta.
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Vijay Sales expects at least a 10 percent growth over two years this Diwali.
"Yesterday, what we did was nearly 2x of a normal Sunday, which is a very good Diwali sales precursor. So overall, I think this year, we will see compared to last two years, two years before Diwali, we should see a growth of 10 to 15 percent and for a change this time, and we may also see a growth in numbers,” he explained.
Consumer durables, in the last year itself, have seen a price increase of 15 to 20 percent but this hasn't impacted demand according to Gupta.
"That is a major increase, but we have not seen any impact on the consumer buying decisions. Earlier, what used to happen is 3-4 years back when a price used to drastically increase, we used to see a change in the buying pattern and what consumers would do is downgrade their brands or the model. But this year, in spite of the price hike, people are only going for upgrades,” he said.
Is this a structural shift in consumer durables' buying patterns?
"A lot of people in the last few years have not gone on vacation. They have not shopped much on apparel, or on other products and I think that saving is being translated," he said.
For the full interview, watch the accompanying video