Signals for your Business | Issue 4

Festive Season Sales Trends in India | 2022 Edition

Festive season Trends in India 2022 Edition

Signals for your Business | Issue 4

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.

Smartphone market

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.

Mobile Computing- Gaming market

Boom for gaming laptops

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%.

Increase in adoption of wearable Technology

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.

IT and accessories market

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.

Product categories in Focus

Keep in touch with GfK to stay up to date on the latest trends and opportunities!

Subscribe to the Newsletter

Discover the latest and actionable market, retail, and consumer insights with GfK now!

Take advantage of upcoming opportunities with GfK Point-Of-Sale insights

GfK’s Market Intelligence: Sales Tracking is the industry gold standard, with data from the biggest POS network in the tech and durables industry. Our weekly insights allow you to react fast, with results within 3-5 days after each week’s end. Our multi-faceted servicing ensures you gain the most value from our intelligence with reports for immediate insight, dynamic database access for in-depth analysis and our account managers for local market expertise.

GfK Market Intelligence weekly Index

Insights that enable you to:

React to changes in the market fast
Build successful promotions that drive revenue
Optimize your channel mix to ensure you are taking advantage of the omnichannel trends
Be confident that you have a competitive edge
Safeguard your product launches
Ensure your pricing reflects changing demand
Innovate and plan successfully for the future

Be the first to respond. Get instant insights from your GfK Market Intelligence: Weekly Index pushed directly into your hands with our Performance Pulse app. Take corrective action immediately — wherever and whenever needed.

Ready to accelerate your decision-making?

REQUEST A DEMO

gfkconsult

Faced with complete disruption, today’s leaders must rethink the way they operate to stay ahead. They need to validate new ideas, question assumptions, and anticipate tomorrow’s biggest trends. gfkconsult strengthens your business with data science, AI-backed technology, and human expertise.

Request demo

gfknewron Consumer

Get inside your consumers' minds. Know who your consumers are, the drivers behind their purchase decision, which brands they prefer, how much they spend, and where they spend it. This way, you can optimize messaging, better position your brand, and develop your go to market strategies.

Request demo

gfknewron Market

Plan ahead with a full picture of what sold, where, and when. gfknewron Market enables you to stay ahead of markets and competitors, identify growth opportunities, and address issues quickly with your point of sales data in all depths and breadths. Know your market so you can win it.

Request demo

CMO Council Report

CMOs around the world and in every industry have entered a new era of high-velocity data marketing. For modern data marketers, speed wins. In partnership with the CMO Council, find out the latest trends impacting marketing leaders today and how data drives impact. Get the latest high-velocity data marketer report.

Download CMO Survey Report

Global State of Consumer Tech & Durables

Get actionable insight from our Market, Retail and Consumer Intelligence Experts and data analysts. The report powered by gfknewron provides a snapshot of key macro trends in the global Consumer Technology and Durables sector in 2022 with regional breakdowns to help you navigate the uncertainty and thrive.

Download Full Report

GfK's Helicopter View Report

Staying up to date with the latest developments and trends in today’s fast-moving tech and durables markets is a real challenge. Don’t wait for your teams to analyze top line facts and figures for you. Get the big picture of your technical consumer goods markets: quarterly sales insights from across the globe!

Download Free Report