Business

Consumer sales increase as demand captures market attention

From groceries to smartphones, refrigerators and cars, sales of essential goods and custom items in the first two weeks of July rose at the fastest pace in a year, as pandemic fears eased and most states – including some in the South – unlocked their markets.

Manufacturers and dealers say sales of these items are up 30-40% year-on-year in June. The rate is also up 10-20% despite a strong increase last year, when demand was strong. pent-up after a long lockdown has boosted sales.

At India’s largest biscuit maker, Parle Products, sales fully recovered in July, with the company even facing inventory shortages due to demand exceeding expectations. , senior industry head Krishnarao Buddha said.

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“All channels are also stocking up for big discounts like Independence Day. We are yet to see any impact of fuel price hikes on demand as consumers are saving on other avenues such as commuting to office and entertainment,” said Buddha.

Sales also surged in large-ticket or discretionary products, from mobile phones and home appliances to cars.

“The passenger car segment is going back to the pre-pandemic days,” said Vinkesh Gulati, president of the Federation of Automobile Dealers Associations. Sales were up more than 50% from the first two weeks of July in the previous two years, he said.

Shashank Srivasatva, senior managing director of Maruti Suzuki, the car market leader, said the recovery from the second Covid wave is more geographically mundane. “There was a rapid shift in sentiment from the depth of panic in April to resilience shining back in July. Reservations, retail and deliveries are all moving in a positive direction and supply is also smoother, excluding some variants that are having challenges in component supply,” he said.

Demand remains strong despite rising prices on most products as companies in FMCG, home appliances, smartphones and autos turn to consumers with higher costs of goods. .

Sales at LG jumped 20% in the first two weeks of July from a year earlier, the company attributed to increased demand for air conditioners and refrigerators due to the delayed monsoon in the North. and the opening of the southern market. This has caused the largest device manufacturer in the country to change its view of the Indian market.

Deepak Bansal, vice president (corporate planning) at LG Electronics India said: “From being cautiously optimistic, we are in an optimistic outlook, despite most consumer buying. Consumption is based on actual need and not discretion,” said Deepak Bansal, vice president (corporate planning) at LG Electronics India.

In the FMCG market, sales increased by 30.3% in the July 1-14 period compared with the same period last month, according to a study by sales automation company Bizom. While it was fueled by large inventories across categories, commodities previously hit by sharp price increases recovered strongly, with 68% growth after the price correction.

Akshaya D’Souza, chief marketing officer at Mobisy Technologies, which owns Bizom, said: “Fast-moving consumer goods sales show that consumption has fully recovered from the impact of the pandemic with a strong start for the second quarter.

Electrical appliance company Havells said its sales increased steadily weekly this year after the Covid wave, compared with last year, when demand spiked.

“However, if we average it out, it’s actually better than last year,” said its president, Anil Rai Gupta.

https://economictimes.indiatimes.com/news/economy/indicators/consumer-sales-swell-as-demand-crowds-unlocked-markets/articleshow/84570221.cms | Consumer sales increase as demand captures market attention

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