Consumer demand has strengthened across categories in the first phase of the festive season, with retailers and brands reporting their strongest sales growth in several years.
Highlights
- Consumer demand rose strongly across multiple categories during the festive period.
- Annual sales growth reached around 30-35% for some categories.
- White goods, consumer electronics, automobiles, apparel and footwear saw strong demand.
- Smartphones and laptops recorded price increases of around 35-40% and 12-15%, respectively.
New Delhi: India’s festive shopping season has started on a strong note, with consumer demand rising across automobiles, electronics, home appliances, apparel and other categories, according to a report in The Economic Times.
Retailers and brands said the improvement in demand is broad-based, with some categories registering 30-35% annual sales growth during the first phase of the festive season. The performance has raised expectations that the momentum could continue through Navratri and Diwali.
The increase comes despite consumers facing higher prices across several products. The report said prices have increased around 12-15% for TVs and home appliances, 35-40% for laptops and smartphones, and about 5% for cars in a high-inflation environment.
Electronics, Appliances See Strong Demand
The festive sales period has generated strong demand for consumer electronics and household appliances. Products including televisions, refrigerators, washing machines, smartphones and laptops are seeing healthy traction.
The report cited industry executives as saying that premiumisation continues to support demand, with consumers increasingly opting for higher-value products.
Online platforms have also benefited from festive buying, while traditional retailers are reporting strong sales, indicating that the demand recovery is not limited to one channel.
Electronics manufacturers are operating factories at high capacity to meet festive demand and expect sales momentum to remain healthy until Diwali.
Auto Industry Eyes Strong Second Half
Automobile sales have also gained momentum during the festive season. Industry expectations cited in the report indicate that auto volumes could grow around 5-6% in the second half of FY27.
Smaller towns in states including Maharashtra and Karnataka are also contributing to growth, broadening the festive consumption recovery beyond major metropolitan markets.
Industry executives expect the strong start to festive sales to support consumer demand over the coming weeks. However, the sustainability of the trend after the festive period will remain important for assessing the broader strength of household consumption.
