Consumer firms see double-digit growth on festive shopping

Consumer durables firms and fashion retailers expect double-digit growth in value terms in the ongoing festival season as consumers have stepped up purchases during this period.

- SHARLEEN D'SOUZA AKSHARA SRIVASTAVA

They expect to see value sales growth upwards of 15 per cent, which is especially coming in from cities. However, volume growth may lag behind value growth.

During the festival period spread across October-November, Godrej Appliances expects to see value growth of 20 per cent as it sees high demand for premium white goods.

"Demand is largely driven by premium products and is concentrated in city markets, while demand from rural areas continues to remain under pressure," Kamal Nandi, business head and executive vice-president of Godrej Appliances, part of Godrej & Boyce, told Business Standard. He said volume growth is expected to be in the range of 10-12 per cent.

Another executive from a consumer durable retail chain, requesting anonymity, said that demand from the earlier part of the month was good and there has been a pick-up in sales, especially on festival days since August. He expects value sales growth to be in double digits.