Festive shopping trends this year reveal a significant shift towards premium products such as AI-enabled washing machines and smart air conditioners, which are outperforming the traditionally dominant mass-market segment, reported The Times of India (TOI). Brands are aggressively pushing offers, discounts, and flexible payment schemes like extended EMIs to soften the blow of inflation and entice more shoppers.
This effort coincides with a partial revival of rural incomes, thanks to a strong monsoon season, which has boosted agricultural returns and consumer spending, particularly in smaller towns, as per the report.
'Good Monsoon' A Driver
Kamal Nandi, Business Head and Executive Vice President at Godrej Appliances, highlighted that the premium segment has been the star performer across various categories this year. He told TOI that while the mass market has remained stable, it is expected to gain momentum as the festive season progresses, culminating with Diwali.
“A good monsoon season positively impacts agricultural returns, which typically translates into increased demand in mass markets. We expect to see this uptick materialise more significantly going ahead,” Nandi was quoted as saying. He also emphasised that consumer confidence is rising due to flexible payment schemes, especially on premium products, and an increased appetite for product upgrades among urban shoppers.
Brands Remain Confident
Retail chains like Vijay Sales are also forecasting strong sales growth. Nilesh Gupta, Director of Vijay Sales, predicts a substantial increase in value sales compared to last year, driven largely by the growing demand for premium goods. He told TOI that this segment will see even higher sales volumes than in previous festive seasons.
Haier Appliances India, riding the wave of increased demand, anticipates closing the festive season with a 35 per cent year-on-year growth. N.S. Satish, President of Haier India, told TOI that the brand has already exceeded sales projections for LED TVs and washing machines since the season began with Onam. He expects this momentum to continue through Diwali as more consumers opt for premium products.
TOI also reported that Voltas is experiencing growth in both its premium and entry-level products across smaller towns and cities, while jewellery brand Joyalukkas has introduced a gold rate protection plan that allows consumers to lock in current rates with a 10 per cent deposit, along with other incentives such as vouchers and old gold exchange offers.
To stimulate mass-market demand, Haier has rolled out flexible EMI schemes starting as low as Rs 994. Mondelez also reported that resilient rural demand and a steady uptick in urban markets are contributing to the sustained growth of festive sales, despite broader inflationary pressures.
As the season progresses, brands remain hopeful for continued consumer enthusiasm across both premium and mass-market segments.