Festive season demand will propel year’s overall growth rate

Industry stakeholders are optimistic this year’s festive demand will contribute significantly to the overall growth for 2023. The festival sales of consumer durables constitute a high percentage of annual sales across the industry with water heaters sales typically see an increase in the last three months of the year.

Bizz Buzz interacted with some of the industry leaders to know their view on the topic.

Parag Kulkarni, senior Vice-president-International and President, A O Smith India, says, “The underlying need to improve living standards combined with the surge in the need for comfort in households has helped growth. Concerns about health and hygiene have risen over the past few years, which will likely benefit manufacturers of products like water purifiers and water heaters. People are upgrading to a more premium lifestyle and our products, with their distinct combination of technology, ultra-modern look and cutting-edge features, will continue to find traction.”

The focus on launching new products, coupled with good deals and enhanced distribution, especially in tier-2 and tier-3 cities, should help brands during the festive season ahead, he said.

With the festive season upon us, there is tremendous optimism with regard to sales volume of gems and jewellery sector. There has been a positive shift in consumer buying patterns as they are now more inclined to purchase items that are meaningful, that holds significance and plays a prominent role in their everyday life.

Amit Pratihari, Vice-president, De Beers Forevermark, says, “We are also seeing a huge demand, particularly from the younger generation to buy classic pieces from our Icon and Avaanti Collections, which are lightweight and make for good every day wear. The younger generation is liberal in spending on jewellery and diamonds in particular. We are also witnessing a rising trend of self-purchase among women, as jewellery, particularly diamonds, has become a distinctive symbol of their self-expression and independence.”

This festive season, we are expecting a growth of around 25-30%, with south India being the major driver. The wedding season coinciding with festivities this year adds to the demand as the buying sentiment, particularly for jewellery, is highly positive. This is likely to continue into the new year as well. In short, we are upbeat about the potentialities of a strong festive season this time, he added. The festive season will dazzle through as the real estate market has already seen a significant uptick in demand with the economy showing great signs of stability and growth. The sense of optimism prevails across the real estate sector; and for good reasons too. There is an almost a similar opinion among the players.

Most opined “We are also expecting significant growth this year, building on the success of the previous year and the continued strong demand, driven primarily by burgeoning aspirations. As we approach the festive season, we are already witnessing a surge in inquiries and we are expecting around 20 per cent growth compared to last year’s festive season. This naturally offers a context for consumers to go in for their dream homes as the overall climate is geared towards sustained demand. Consumers are keen to buy homes as stability and security is on top of their mind. The recent trends stand testimony to the confidence levels of home buyer. In fact, it is an all-time high.”

Ramani Sastri, CMD, Sterling Developers says, “The market continues to experience end user-driven demand and we are already witnessing a trend of more serious buyers closing sales. Rising homeownership amongst millennials supported by higher disposable income and willingness to upgrade to larger, luxurious spaces equipped with better amenities, have also sparked a sharp growth in housing demand in the recent past. The revival in market sentiment in the backdrop of accelerating economic activities makes this festive season more attractive. Moreover, the projected steady growth of the industry and an array of new project launches also make it an attractive investment option.” However, while investing in a property, buyers should not only look at the attractive deals but also consider the reputation of the developer and other factors like location, execution capability and amenities that the developer has to offer, he said.

Overall, the market outlook is certainly positive and given the aura, we do believe that markets will see sustained growth over the next few years.