Festive season boosts Indian markets: Sales surge in electronics and real estate
According to data from Counterpoint Research, iPhone sales crossed a staggering 1.5 million units during the first week of festive sales. The overall smartphone market in India saw an 8% increase in volume and a remarkable 25% increase in value terms between the 8th and 15th of October.
India experienced a significant surge in economic activity during the recent festive season. One of the most striking developments during this festive season was the unprecedented demand for premium smartphones. According to data from Counterpoint Research, iPhone sales crossed a staggering 1.5 million units during the first week of festive sales.
The overall smartphone market in India saw an 8% increase in volume and a remarkable 25% increase in value terms between the 8th and 15th of October.
Shilpi Jain, Sr Analyst, Counterpoint Research noted, "This year festive season sales started from 8th October and what we witnessed that first week of the sale recorded 8% year-on-year growth in volumes and only 5% growth in value. So the consumer sentiment which was low throughout the year, in terms of demand, we witnessed it in smartphone sales, it is back in terms of electronics and not just smartphones, but TV accessories and other electronic appliances also witnessed significant growth during this period."
An important factor behind this surge is the availability of finance schemes that have made premium devices, like iPhones, more accessible to Indian consumers. Brands like Apple have a special place in the hearts of Indian consumers, and the introduction of these schemes has effectively removed price as a hindrance.
The auto industry has also witnessed growth during the festive season. Though sales during Navaratri remained largely flat, the sector has grown by an impressive 20% year-on-year since Onam, with 7 lakh cars sold. By Bhai Dooj, which marks the end of Diwali, the industry is expected to achieve the significant milestone of 10 lakh cars sold. The highest demand has been observed for SUVs, MPVs, premium hatchbacks, and entry-level sedans.
Maruti Suzuki, a prominent player in the Indian auto market, expects the industry to reach a million car sales by Bhai Dooj. Shashank Srivastava, Senior Executive Director at Maruti Suzuki, expressed his optimism, stating, "I am very positive about the next 15-20 days of the festive season, which will conclude with Bhai Dooj."
Real estate, an integral part of the Indian festive season, has seen robust growth in leasing and sales. According to a report from CBRE, residential sales recorded a 5% year-on-year increase during the first nine months of 2023, with over 2.3 lakh units sold in the same period.
Abhinav Joshi, Head of Research, India, Middle East & North Africa, at CBRE highlighted the significance of the Navaratri season, saying, "Navaratri is considered an extremely auspicious occasion for people to buy properties. During this time, we also see the developer community becoming very active. These 40-50 days witness the maximum number of launches and robust sales."
During the initial eight to ten days of the festive season, there was a remarkable average jump of 10 to 15% in sales across various markets. Notably, Tier-I cities such as Mumbai, Pune, Bangalore, Gurgaon, and parts of Hyderabad have been performing exceptionally well, indicating a widespread resurgence in the real estate sector.
Further, ICRA forecasts that robust demand in the first half of FY24 will play a pivotal role in achieving double-digit revenue growth for the hotel industry. Premium hotel occupancy across India in FY24 is currently holding strong at 70-72%, reaching levels not seen in a decade.
This surge in hotel occupancy can be attributed to several factors, including increased domestic leisure travel, a surge in meetings and conferences, the hosting of the G20 summit, the upcoming World Cup, and a notable uptick in foreign tourist arrivals.
First Published: Oct 25, 2023 6:52 PM IST
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