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Cos expect up to 50% jump in


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Cos expect up to 50% jump in

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Cos expect up to 50% jump in

  1. 1. Cos expect up to 50% jump in festive sales Woo Consumers With Discounts And Freebies | E- Tailers Lead The Charge
  2. 2. Contd… It's been a lacklustre year so far but, from all accounts, it looks like this will be a cracker of a festive month for marketers. Across categories -from cars and superbikes to white goods and mobile phones -companies predict a20- 50% growth in sales. In anticipation, marketers have gone on a promotional blitzkrieg, with discounts, freebies and other offers pouring in for the consumer. After three years of sluggish sales and average festive spurts, this is good news for marketers. Typically , a good festival month can bring in anywhere between 25% and 50% growth across segments. In cars, for example, a 20-25% jump in monthly volume is considered a “very good“ festival season. In durables and mobiles, the jump is often higher -2x to 10x on e-commerce platforms is par for the course. The festive month is broken into different regional slabs: Ganesh Chaturthi for Maharashtra, Durga Puja for Bengal and the east, Navratri for Gujarat and Diwali for the north, west and Karnataka.
  3. 3. Contd… Much of it is online-driven. Said Sulakshan Kumar, co-founder and CEO, MySmartPrice (which analyzed online sales): “This festive season, top e- commerce sites had agrowth of over 750% in GMV (gross merchandise value) from last year. The top 3 categories sold online were mobiles, computers and generic deals. Mobiles contributed nearly 50% of the GMV while computers and generic deals contributed over 10% of sales. More users too seem to have been bitten by the shopping bug this year as transactions grew by 900% over last year's Big Billion Day .“ Automobiles have so far registered a mere 6% growth this year. Said Vyomesh Kapasi, CEO, Kotak Mahindra Prime: “Footfalls and enquiries at dealerships have seen a very good growth and more customers are logging in for car finance. But the festive season stretches from mid-October to mid- November this year, so we will need to monitor how well the trend holds up.“
  4. 4. Contd… The growth is even more pronounced in expensive luxury cars and superbikes. Said Shirish Kulkarni, chairman, DSK Motowheels, which markets the Benelli brand of highend motorcycles: “Festival demand has been very good and very steady so far and we expect a 50% growth in premium bikes. For Benelli, we have got 170-odd retail sales in 15 days at the rate of 10-a- day, which is excellent for this price segment.“ Agreed Roland Folger, MD & CEO, Mercedes-Benz India: “The sentiment is very positive thanks to the cut in interest rates last month. There is nothing on the horizon to stop that growth track for us.“ The consumer durables companies predict over 20% growth compared to last year and so far this year. But the growth is riding on the back of an aggressive promotional push. Japan's Panasonic, with its festival sale named Life Ut sav, expects an increase in the sale of televisions, refrigerators and home appliances.
  5. 5. Contd… “We offer quality products along with lucrative and va ue-added offers which help us to successfully retain the consumers for longer period of time,“ said Manish Sharma, president, CEAMA, and MD, Panasonic India & South Asia. LG is offering extended warranty . “We expect a 20% to 25% growth this season, compared to the sales in the rest of the year,“ says Niladri Datta, head of corporate marketing, LG India. Online retailers like eBay and Snapdeal also foresee an increase in demand for televisions, appliances and home products, besides mobile phones. Snapdeal saw its mobile phone sales zoom. Rahul Taneja, vice-president (category management), Snapdeal, said “three mobile phones are being sold per second“. Overall, during the Preview Sale, Snapdeal saw its sales grow 20 times compared to ast year. eBay, which has launched Loudest Diwali Ever sa e, expects an overall increase of three to ten times across products during the festive season compared to the rest of the year. Tier-2 & -3 cities have chipped in with higher contribution and growth this time round. Cities like Trichy , Coimbatore, Nagpur, Surat and Rajkot have topped the charts.
  6. 6. For details and bookings contact:- Parveen Kumar Chadha… THINK TANK (Founder and C.E.O of Saxbee Consultants & Other-Mother Email Mobile No. +91-9818308353 Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015