Festive Season Sales: Mixed Results for Different Industries
The festive season is known for its flurry of sales and offers as manufacturers attempt to entice customers with attractive deals. This year, while some sectors reported significant sales growth, others remained stagnant.
Automotive Sector: A Festive Boost
During the festive period between early October and mid-November, the automotive sector saw a surge in sales. After reaching a new high in 2022, sales increased to a new record of about 3.8 million units, up from around 3.2 million during the same period last year. This growth was driven by the two-wheeler segment, which has been a major concern for manufacturers due to rural consumers shying away from purchases. However, this festive season saw rural consumers flocking to dealerships, resulting in record sales numbers for both two-wheelers and passenger vehicles.
Consumer Durables: Mixed Signals
On the other hand, the consumer durables sector experienced mixed results. While smart television and washing machine manufacturers saw a jump in sales of premium products, mass-market products remained subdued. Overall, the business has grown by double digits due to higher off-take of pricier items and price appreciation, but the mass-market segments did not register volume growth.
Real Estate Market: A Surge in Residential Home Sales
The real estate market also experienced a significant increase in residential home sales, with estimates suggesting a double-digit surge. This growth is expected to boost overall sales numbers for the October-December quarter by 10-15% over last year. Anuj Puri, Chairman of real estate consultancy Anarock Group, states that they have “definitely seen a major surge in both new launches and housing sales this festive season.”
Snacks and Cookies: Growth in Rural Market
In categories like cookies and savory snacks, which are widely purchased as gifts during the festive period, sales rose even in the rural market. Parle Products reported a close to 10% growth in sales this Diwali compared to last year.
Remaining Cautiously Optimistic
While the festive season brought encouraging growth numbers for some industries, particularly from the rural market, industry veterans like Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA), remain cautious. Singhania believes that it is necessary to observe this trend for at least four to five months before drawing any conclusions. For now, the numbers are overall encouraging, albeit with some areas of concern.
Orginal article: Link To Article – provided by Kansas City Realtors
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