Consumer electronics and cellphone retailers said sales in the last weekend before Diwali — when business is supposed to peak — has improved this year as compared to same period of last year, though the usual high peaks of Diwali are missing this year due to the economic situation.
This weekend electronics and mobile phone retailers sold more of premium products such as premium refrigerators, washing machines and smartphones like the latest Apple iPhone indicating consumers are fulfilling the pent up demand of postponing purchases in the last quarter.
Leading electronics retail chain Vijay Sales director Nilesh Gupta said this weekend sale was reasonably good even though the usual bouyant pick up before Diwali was missing. The retailer is one of the largest in Mumbai, New Delhi and Hyderabad.
“We still grew by more than 7-8% which is much better unlike several other industries, but the overall pessimism in the market seems to have impacted the bouyancy. However, this is much better than last year,” Gupta said.
Gupta said Apple’s latest iPhone 11 series is still in short supply while price cuts in premium and large screen televisions drove sales of premium segment.
East and North’s leading chain Great Eastern Retail director Pulkit Baid said sales has grown by 8-9% in the last weekend of Diwali as compared to same period last year.
“Both first time and people upgrading their products have purchased. Moreover, in electronics, online deals were focused on exclusive models which somehow was not accepted as well,” Baid said.
Cellphone retail chain Spice Hotspot chairman Subhasish Mohanty said while e-commerce discounting took a share of Diwali sales, not all consumers are spending as big as it used to be.
“The premium segment is relatively less impacted with good demand for Apple’s iPhone driving value growth in the premium segment. Hence, while our volume sales went up by 5-6% the overall revenue is up by more than 25%. However, it is still lower than the huge 30-40% growth we used to see during Diwali,” he said.
Neighbourhood mobile phone retailers said business is badly affected due to online discounting on exclusive models apart from the economic sentiment.
Sales during the weekend was flat over last year while during the entire month it is down by 30%, said Arvinder Khurana, president of All India Mobile Retailers Association, the pan-India body of offline cellphone retailers.
Retailers said sales should pick up further in the days leading to the festival since Indian consumers are increasingly shopping at the last minute in most of the occasions. Business Telegraph