Electronics and smartphones would have done better had supplies not been constrained, which affected volumes, which rose by low single digits compared to last year’s record increase.
However, businesses said consumer confidence and demand were better than a year ago, which drove higher ticket volumes, supported by improvements in incomes, stable employment, the general economic outlook, and lower rates of COVID-19 infection.
“Growth for the festive season has been flat, but it would have been better if supplies of premium products were flat, as consumer sentiment has been very refreshing,” said Deepak Bansal, Vice President, LG Electronics India.
LG and Samsung expanded holiday revenue by more than 20% over last year. Smartphone maker Realme’s sales grew over 40% with an 11% increase in average selling prices, indicating increased purchases of premium products. Panasonic sales grew by 42%.
Realme’s head of international business, Madhav Sheth, said that festive sales are expected to extend over the weekend, and actual sales would have been much higher if the supply chain gap can be closed.
All the major brands including Samsung, Apple, LG, Xiaomi and Bosch had supply problems during this year’s holiday season due to shortages of semiconductor chips and other components due to a cracked global supply chain.
Eric Braganza, president of the Consumer Electronics Manufacturers Association, said demand was higher for mid-to-premium end products with consumers favoring an upgrade, including in smaller cities.
While e-commerce marketplaces like Amazon and Flipkart gave an initial boost to this year’s holiday sales by launching things a few days before Navratri and running promotions continuously for a month, the companies said, foot traffic in malls and mortars has also improved, aided by vaccination numbers. High.
“Sales and revenues have been higher across categories compared to the 2019 level, and we are seeing the best sales performance since the pandemic,” said Rajendra Kalkar, president of Phoenix Mills West, which operates more than six malls in Mumbai, Pune. and Bengaluru. “Categories like jewelry and ethnic are growing at the fastest pace, indicating positive consumer sentiment and a celebratory mentality.”
Puma India managing director Abhishek Ganguly said sales grew by 40% in stores and about 70% online compared to last year. “Even compared to 2019 levels, growth is significantly high and we expect the momentum to continue,” he said. “Unlike last year when shopping was very individual, this time we see friends and families shopping together.”
Retailers like Vijay Sales, Sangeetha Mobiles and Great Eastern Retail have recorded 15-20% growth in sales with a significant uptick in business during Dussehra and Dhanteras.