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<\/p>\nConsumer durables firms and fashion retailers expect double-digit growth in value terms in the ongoing festival season as consumers have stepped up purchases during this period.<\/p>\n
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They expect to see value sales growth upwards of 15 per cent, which is especially coming in from cities.<\/p>\n
However, volume growth may lag behind value growth.<\/p>\n
During the festival period spread across October-November, Godrej Appliances expects to see value growth of 20 per cent as it sees high demand for premium white goods.<\/p>\n
“Demand is largely driven by premium products and is concentrated in city markets, while demand from rural areas continues to remain under pressure,” Kamal Nandi, business head and executive vice-president of Godrej Appliances, part of Godrej & Boyce, told Business Standard<\/em>.<\/p>\n He said volume growth is expected to be in the range of 10-12 per cent.<\/p>\n Another executive from a consumer durable retail chain, requesting anonymity, said that demand from the earlier part of the month was good and there has been a pick-up in sales, especially on festival days since August.<\/p>\n He expects value sales growth to be in double digits.<\/p>\n The executive pointed out that demand had been choppy on non-festival days and demand at the mass end continued to suffer, but that could be due to it coming off from a good base of last year.<\/p>\n The retailer also said that while it was witnessing volume growth, it was in low double digits.<\/p>\n On a positive note, while the summer season this year was impacted by unseasonal rains, which in turn had an impact on air conditioners and refrigerators, demand for these products has witnessed a comeback in October.<\/p>\n Retailers have seen higher than usual demand for air conditioners.<\/p>\n Vijay Sales has witnessed a 10-15 per cent rise in sales of air conditioners in the last couple of weeks, as compared to a normal October due to slight warm weather across the country.<\/p>\n The retailer expects air conditioner sales to do better on an annualised basis.<\/p>\n Another retailer has seen high double-digit demand for air conditioners due to higher than normal temperatures.<\/p>\n “The consumer sentiment in buying has been very positive this season,” Nilesh Gupta, managing director, Vijay Sales, said, while adding that people were buying goods even during shradh — a time when most Hindus are expected to abstain from luxury.<\/p>\n “Sales have been pretty robust and on Dusshera we have seen growth upwards of 20 per cent in value sales,” Gupta said.<\/p>\n He also pointed out that the Cricket World Cup had been the icing on the cake this Diwali, and was boosting TV sales, especially large screen TVs.<\/p>\n Kitchen appliances, too, he said, were seeing an uptick in demand this season.<\/p>\n The retailer is expecting a growth of 15-20 per cent in the category.<\/p>\n While demand isn’t as robust for apparel as it is for consumer durables, it is still better compared to the previous year’s festival season.<\/p>\n “Demand is better than last year and is expected to be higher by 10 per cent compared to last year.<\/p>\n “As we approach diwali, this number will improve,” said Lalit Agarwal, founder and managing director, V-Mart Retail.<\/p>\n Agarwal pointed out that so far, East India had seen a good pick-up due to puja, and the North was witnessing demand for winter wear as the temperature had started to drop and the South was slowly witnessing a demand pick-up.<\/p>\n Fashion chain Lifestyle is also witnessing good demand since the weekend and the overall growth has been in the early double digits.<\/p>\n “On a like-for-like (same store sales) basis, we have seen low single-digit sales which will improve as we move towards diwali,” said Devarajan Iyer, chief executive officer, Lifestyle.<\/p>\n