Festive Season Sales Trends in India | 2022 Edition
With the ongoing festive season- Manufacturers and Retailers are hoping to record strong sales this season- October- November. Retail sales always peak during the festive season, when the nation celebrates the major festivals of Dussehra and Diwali.
Sales of all Major Domestic Appliance products get a boost during the festive season. The period contributes roughly 17–19% of all sales annually. This percentage is more for Small Domestic Appliance categories, at about 21-23%.
Sales of all Major Domestic Appliance products get a boost during the festive season, especially during the Diwali months of October and November. The period contributes roughly 17–19% of all sales annually. This percentage is more for small domestic appliance categories, at about 21-23%.
Source: GfK Market Intelligence Point-of-Sales Tracking Offline channel Report
As for the Technical Consumer Goods Segment, the trend of Premiumization is expected to continue this festive season as Indian consumers continue to seek products that provide superior performance and user experience.
In view of elevated inflationary conditions, mass consumption demand was impacted. This year, India's retail inflation measured by the Consumer Price Index surged to 7% in August compared to 6.71% in July.
Inflation hit Indian Smartphone market sees rising ASPs.
During the festive season last year (2021) we witnessed a 14% increase in Average Selling price during the months of October- November in comparison to same period 2020.
The consumer demand is likely to be high, especially in the mid-tier and premium segments. Given the ongoing festive season offers and promotions, we can expect higher sales in the mid-tier and premium segments in the smartphone market.
The Smartphone Premium category (over INR 30,000) Value contribution grew 25% festive season 2021 vis-a-vis Festive season 2020 (October- November)
The Volume contribution in the same time period grew by 42% in the premium smartphone category
Now that the Indian Government has asked mobile manufacturers to switch to 5G for all smartphones over INR 10000 in the coming months- we also expect a higher contribution in the entry level smartphone segment which is currently at 23.8% in the INR 15,000 to 20,000 price band
Interestingly for smartphones, last year's volume contribution of organized channel grew by 9% and value contribution grew by 29%. Similar trend may follow this year.
Pandemic led to people spending more time indoors. This created need for recreation and entertainment at home leading to boost to the gaming market among others.
This trend continued in 2021 and the gaming laptop market became 2.5x in 2021 vs 2019. Gaming laptop segment mix contribution to the total laptop’s market itself grew from 7% in 2019 to 13% (YTD 22) (by sales units), while by Sales value it is at 17%.
H1 2022 witnessed Metro cities coming back on high growth numbers relative to other population classes.
Core wearables is one of the fastest growing categories, growing multi fold in the last consecutive six-monthly period.
People in the smaller cities are also upgrading quickly to products like smart watches, fitness bands.
Wearables are expected to continue with high growth in this festive season. This will include many products like smart watches, wireless earphones, fitness trackers etc.
As businesses compete for customers by offering incentives, some trends have emerged in the retail landscape.
In addition to standard regular discounts, marketers are enticing customers with exchange offers, lucky draws, cashback, gift sets, and extended warranties. The trend of premiumization is expected to continue this festive season as Indian consumers continue to seek products that provide superior performance and user experience.
Laptops & tablets are the 2 categories growing YoY during festive season
Despite price increases, customers' preference for high-end goods is unaffected. Products with a gamut of features that simplify daily life at home and provide a seamless experience are becoming more popular. This is quite evident from the market trend of increasing sales of premium laptops.
According to GfK Market Intelligence Offline Retail Tracking Data, the Premium laptop segment (over 52000 INR) is moving up to 50% of sales from 20% in 2019 (Jan-Aug) in the offline channel which is both due to Price Increase and Premiumization.
However, as per past trends, with price drops and promotions amid the holiday/ festive season, the mainstream and entry-level laptops (under 52000 INR) may witness an increase in sales contribution rather than the premium (over 52000 INR) segment.
