Independence Day sales boom as consumer sentiment breaks free of slowdown

This Independence Day consumer sentiment broke free of the economic slowdown. Economic Times quoted Industry Executives and reported that the sales of smartphones, laptops, television sets, refrigerators, daily consumables and fast-moving consumer goods (FMCG) have surged 25-30% in the ongoing Independence Day sales from last year's levels.

As per the report, attractive offers and new movie releases lifted footfall in malls by 15-20%, driving sales of eateries and other stores such as apparel and fashion. New smartphone models launched by Oppo, Samsung and Xiaomi, as well as offers in electronics, instalment schemes and bank-led instant discount programmes drove sales.

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Executives have also told Economic Times that this robust buying signals a significant improvement in consumer sentiment just ahead of the crucial festive season. Consumption declined since the festive season last year. The decline was driven by high inflation, poor sentiment and job losses in some sectors. However, it has started to improve on-month from June and consumer goods companies are expecting a windfall in the gains as this year's festive season starts in a few weeks.

India's largest Retailer Reliance Retailer reported over 25% on-year growth in sales of electronic products boosted by smartphones and other high-ticket items such as television sets and refrigerators at its Reliance Digital Chain. Vijay Sales' Director Nilesh Gupta told Economic Times that the retailer saw a 10-12% jump in volume sales growth, or numbers of units sold, and average billing value went up by 5-7%. Vijay Sales operates 127 stores.

"There was a 10-12% jump in volume sales growth, or numbers of units sold, and average billing value went up by 5-7%," said its director, Nilesh Gupta. "This indicates consumers are upgrading, which is a positive sentiment before the festive season", Nilesh Gupta told Economic Times.

Similarly, Grocery retail chains also reported a 25-30% rise in Business from the year earlier.

On August 15, some malls and stores opened early and even planned to close late amid high footfall. Some sales are expected to continue on August 16.

The consumption trend during Independence Day is seen as an indicator for the upcoming festive season. The sales during Independence Day help in clearing the unsold stock to build festive season inventory