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In the wake of the approaching Diwali festivities, interest in high-end products such as AI-enabled washing machines and smart air conditioners has picked up pace. However, mass-market items have seen a slide in interest due to greater attraction for the high-end market.
Companies are providing attractive offers and flexible payment plans to cater to consumer needs amid increasing inflationary pressures.
Kamal Nandi, business head and executive vice president at Godrej Appliances, stated, "The premium segment has been the star performer this year, with strong growth across categories. The mass market has been stable so far."
"A good monsoon season positively impacts agricultural returns, which typically translates into increased demand in mass markets. We expect to see this uptick materialize more significantly going ahead," Nandi further added.
Longer EMI schemes on premium products in metros are making it easy for consumers to get hold of high-end products, thereby forcing them to upgrade their products.
"The demand for premium products will increase more than last year," said Nilesh Gupta, director at Vijay Sales. "The demand for premium products would be more than last year," added Singh.
Others like Haier Appliances India also are expecting good growth. Sales are said to have grown by 35% year on year during the festive season. "LED TV and washing machine sales are surely higher than estimated since the onset of the season, with Onam, and the brand is expecting good Diwali sales as of now as consumers are aggressively looking for premium products, "feel N S Satish, president of Haier Appliances India.
While tier-2 and -3 cities are ensuring the boom of premium products, Bata’s spokesperson said that it has received excellent demand in the form of athleisure and fashion footwear. "Consumer spending, though seeing some softness over the past quarters, has finally started staring at some good macroeconomic numbers," said Badri Beriwal, chief strategy and business development officer, Bata India.
Voltas, too, is witnessing healthy growth there. MD & CEO of Voltas Pradeep Bakshi said, "While premium remains buoyant, entry-level is also sailing steady. We should witness good traction in sales."
Many ongoing sales like the Apple Diwali Sale and Amazon Great Indian Festival Sale are offering great discounts and offers on branded products.
Jewelry brand Joyalukkas is also offering a gold rate protection scheme, with vouchers and old gold exchange, that lets customers lock in existing gold rates with a 10% advance.
For driving demand in mass markets, Haier is coming with flexible payment plans with EMIs starting at Rs 994.
According to a spokesperson from Mondelez, resilience in urban demand and stability in rural areas are supporting festive shopping despite these inflationary pressures.
As customers are excitedly waiting for this festive season, companies are changing their strategies to adapt to the changeable demands and preferences of their customers.
