homebusiness Newscompanies NewsIndia is gearing up for the big festival season, but are green shoots visible in discretionary spending yet?
India is gearing up for the big festival season, but are green shoots visible in discretionary spending yet?
As the festive season approaches in India, consumers can expect attractive discounts and convenient EMI options from retailers. Premium products are likely to make a significant impact, but there is also a pressing need to address economic challenges faced by lower-income segments. The financial sector is optimistic about the season, with expectations of higher growth rates and comprehensive festival packages designed to cater to the increased consumer demand. The stage is set for a vibrant and prosperous festive season in India.
As the festive season approaches in India, retailers, and financial experts are gearing up for what promises to be a lucrative time of the year. In a recent interview with CNBC-TV18, key industry stakeholders shared their insights and expectations for the upcoming festivities.
Nilesh Gupta, Director of Vijay Sales, emphasised the importance of discounts in attracting shoppers during this season. He noted, "Discounts are always there, but in our industry now more than pricing, it is the equated monthly installments (EMI) offers, which matters."
Hinting at the excitement building up for Diwali, Gupta suggested; "there will be further discounts on Diwali." This aligns with the traditional practice of retailers offering special promotions and discounts during the Diwali festival, one of the biggest shopping seasons in India.
“It is not discounts per se in terms of rupee numbers, it could be in terms of better exchange offers, better EMI offers. So overall it is going to be very good package for the consumers,” Gupta explained.
Kumar Rajagopalan, CEO of the Retailers Association of India, echoed Gupta's sentiments regarding discounts and EMIs. He added, "Premiumisation play is definitely happening," highlighting a trend where consumers are willing to invest in higher-quality and premium products during the festive season.
However, Rajagopalan also raised a critical concern, stating, "What we would like is for people at the bottom of the pyramid also to be able to feel that they can spend. That sense of cheer is what is going to get the country to the next level of growth. We will wait for that to happen."
Despite the overall growth and enthusiasm surrounding the festive season, there remains a need to address the economic challenges faced by lower-income groups.
Joydeep Dutta Roy, the Executive Director of Bank of Baroda, noted that historically, the festival season has witnessed increased growth rates from various quarters. This year, he believes it will be no different.
Roy emphasised the buoyant demand in the market, with an uptick in consumption and spending as the festival season approaches. To complement this demand, Bank of Baroda has introduced a comprehensive festival season package running until December 31. They anticipate achieving a growth rate of 15-20 percent higher than the previous quarter and previous festival packages offered. This indicates strong confidence in the potential for financial growth during the festive season.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
First Published: Sept 18, 2023 4:19 PM IST
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