Diwali Brings Glitter To Consumer Electronics Sales
Diwali sales of consumer electronics goods have been encouraging this year. Manufacturers and retailers of consumer electronics are looking at a healthy consumer turnout with business growth expected anywhere between 15% and 30% in the last one month.
Rishi Suri, director - consumer electronics, Samsung India, said, their digital appliance business will continue to exhibit strong growth this festive season. “A healthy double-digit growth is expected from our television, refrigerator, air conditioner, washing machine and microwave categories across India. Samsung introduced innovative products this year in line with the specific needs of the consumers and are expecting 30% above growth in thiscategory this festive season,” he added.
Many retailers and manufacturers believe GST has not impacted festive sales this year. Festivals like Onam, Ganesh Chaturthi, Navratri, Durga Puja, Dussehra have enabled companies such as LG, Lenovo and Sony garner a good market share in the electronics goods segment. LG for example is hoping to garner double digits growth as compared to previous years.
Lenovo too greets consumers this festive season by announcing exclusive offers on its latest Yoga and Ideapad notebooks, desktops and All-in-ones. Lenovo makes it easy for you to bring home the gift of innovation this Diwali with exciting offers and schemes such as additional 2 years warranty, Shopper Stop gift vouchers, easy EMIs and more worth up to INR 13,990.
Echoing the sentiments, Anurag Sharma, Director, AKAI India said, “We have been focused on launching innovative products with the latest technologies across categories this year, especially around this festive season and look forward to acquiring a substantial pie in the market with our extended channel partnerships across the country.”
Retailers cheer for Diwali
The positive sentiments are mirrored by retailers of consumer electronics products operating stores across the country. Reliance Retail, which operates stores in over 750 cities in India, sees strong buying across geographies and consumer segments during the pre- and Diwali season sale. In electronics category, consumer durables, mobile phones, and home electrical gadgets are seen maximum growth by the retailer.
Future Retail, which competes with Mukesh D Ambani’s Reliance Retail, said that pre-festive season sale is going extremely well since the last one month now. Kishore Biyani, Group CEO at Future Group, commented, “The idea behind pre booking is to give all our customers a chance to avail the best deals and products during this festive season. Due to value discounts, most of the customers cannot make the most of the offers due to fast sales. Keeping this in mind, we are bestowing our customers with the power to pre book the product even before coming to the store.”
As per the source, there are great offers on products which are particularly bought during Dhanteras , such as stainless steel , Utensils, Appliances and company is taking a huge bet on Xiaomi phones which are now available across all Big Bazaar stores in limited quantity and hence ‘Pre-booking’ becomes the power given to the customer.
E-tailers equally upbeat
The country’s top two e-tailers, Flipkart and Amazon.in continue to engage in an intense battle to grabtheir marketshare in smartphone and large appliance categories during TV and home appliances. Other e-retailers including Tata CLiQ, Paytm, Shopclues and Snapdeal are equally buoyant about traction from e-shoppers on their respective e-marketplace platforms.
Flipkart for example introduced the first of its kind ‘No Cost EMI’ facility on debit cards right before online sales were being launched. This not only helped grow the market but also give us a huge market share of 70% this sale season. According to the company, its sales have increased two times compared to last year and were driven by mobile phone, lifestyle including television and home appliances.
On the other hand, Amazon India said that this festive season has proved to be its biggest so far. The company is focusing on not only growing the existing customers’ base but also on driving incremental new reach and penetration through market expansion. Non-metros continue to be the driver of new user growth with share of new customers in non-metros moving past 86% in 2017, according to a recent report.
ShopClues recently introduced Re-New gadgets, a dedicated category for refurbished and unboxed feature phones apart from Laptops, Smartphones, and Tablets. Nitin Kochhar, Sr. Vice President - Categories, ShopClues, said, “With a focus on the Re-New Gadgets category, ShopClues is structuring the massive opportunity around Unboxed and Refurbished electronics. Our ReNew category has tripled in growth this season, as compared to our overall marketplace growth of 2.5X. Extensive primary research has informed us that there is a huge need gap when it comes to consumers buying unboxed and refurbished gadgets.”
Some of the best growth markets are Tier II and III cities at present. Retailers said that consumers in small cities have become technology savvy with rapidly rising education levels, steady growth of urbanization and rising disposable income.
The frenzy for consumer electronics good is here to stay. While the pre- and Diwali sale season is currently on, this will be followed by a busy wedding season, followed by Christmas and New Year. These are big buying periods for consumers. While last year there was a major disruption in the market due to demonetization in November, most companies see that issue has stabilized. Hence they believe that the consumer sector is expecting strong year on year growth in the country.
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