Fireworks back for FMCG companies this Diwali
With the overall consumer sentiment improving, companies are launching new products, and are finding buyers too. Premium products are selling particularly well, according to executives at several large consumer goods firms.business Updated: Oct 24, 2014 23:37 IST
After hitting a rough patch in recent years, the fireworks seem to be back for the consumer durables industry.
With the overall consumer sentiment improving, companies are launching new products, and are finding buyers too. Premium products are selling particularly well, according to executives at several large consumer goods firms.
“The past three years were not very good. But this year, sales are much better,” said Kamal Nandi, business head and executive vice-president, Godrej Appliances. “We are seeing growth in excess of 40%. The overall industry, too, is growing more than 20%.”
Both modern trade (retail chain stores) as well as traditional channels are seeing growth, he said.
According to a report by ZyFin Research, the consumer outlook index, which measures consumer sentiment on spending, employment and inflation, recovered to 45.2 in September, a 1.6-point increase over August. Since April, the average index level has been at 43.9, compared to 40.9 in the year-ago period.
There has been a slew of launches this festive season. For instance, Videocon, LG, Samsung and Sony launched a range of high-end ultra-high definition (UHD) TVs.
Godrej launched a new washing machine platform and a hybrid refrigerator. Several smartphones were launched as well.
“With a stable government at the Centre, and the stock markets doing well, the consumer sentiment during the festive season is looking positive,” said Anirudh Dhoot, director, Videocon. “There has been a steep rise in the demand for premium products, especially high-end TVs.”
“We had targeted a 35% growth in sales during this festive season and have exceeded that by a large margin, thanks to contribution from premium products,” an LG spokesperson told HT. A UHD TV range and the flagship smartphone, G3 have been sold out, he said.
Apple’s latest flagship devices, iPhone 6 and 6Plus, launched in India last week, also attracted huge consumer interest.
Companies are going the extra mile to woo buyers with a host of promotions.
Godrej, for example, had offered assured gifts such as dinner sets and rice cookers, among other things, on purchase of all its products. Videocon, which is aiming to top `2,000 crore sales this festive season, also launched a mega Diwali campaign.