homebusiness Newscompanies NewsConsumer durable sector bets on festive season to reverse mass demand slowdown
Consumer durable sector bets on festive season to reverse mass demand slowdown
With the festive season around the corner, Nilesh Gupta, Director of Vijay Sales and Kamal Nandi Business Head and EVP at Godrej Appliances discussed how demand for consumer durables is shaping up and whether consumer sentiment is picking up.
With the festive season around the corner, the consumer durable sector is hoping for a good run of fortune even though inflation has hit mass demand.
If the market is segregated into mass and premium, one can see different trends in the last three months, according to Kamal Nandi Business Head and EVP at Godrej Appliances.
“Because of the inflationary trend, we are seeing the mass segment demand going down. It is degrowing over last year significantly and the degrowth is to the extent of anywhere between 18 percent and 20 percent,” he said.
“The premium segment, which is inelastic to this inflationary trend, there we are clearly seeing growth across markets and across categories and it is as high as 30 percent plus. So clear demarcation between the two segments. In the mass segments, the consumer sentiments are weak whereas, in the premium segment, the consumer sentiments are better,” he added.
He expects this trend to continue going forward. “We did see spikes in the mass segments also during the independence week. Even Onam is expected to show a huge spike in demand. It is also an indicator and between September 1 and September 8, we are expecting a spike in demand in Onam also. Similar can be expected in Dussehra and Diwali,” Nandi said.
Meanwhile, industry data shows that in the month of July there was a steep fall in smartphone sales.
When asked what that indicates, in the same conversation, Nilesh Gupta, Director of Vijay Sales said that smartphone sales depend upon how many launches happen every month.
"The more the number of launches, the greater the sales happen. So in July, the launches were not so many but in the coming month of Diwali, we will see all the brands launching their models and that should give a boost to the sale,” he explained.
For the full interview, watch the accompanying video
(Edited by : Abhishek Jha)
First Published: Aug 30, 2022 5:09 PM IST
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