As India gears up for the festive season, starting with Ganesh Chathurthi, Indians see distinct trends emerging in various sectors. The real estate industry continues to expand with fresh launches and high demand supported by growing economic activity.
The Upcoming India Festive Shopping Surge
Ramani Sastri, Chairman & MD of Sterling Developers, foresees a 20% uptick in inquiries compared to the last festive season. The demand for new houses has reached an all-time high, particularly in the mid and luxury segments. With higher financial freedom, millennials are opting for larger, more luxurious living spaces. Developers are optimistic about homeownership, making attractive offers, and predicting high interest in big cities. The unchanged repo rates and the timing of property appraisals during the festive season are anticipated to give a much-needed boost to residential sales.
Consumer products are also predicted to multiply, owing to a desire to improve living standards and household comfort. The festive enthusiasm extends beyond the home to clothing, luxury items, and other items, with 70% of Indians planning to increase their spending this Diwali, a significant increase from last year. Online shopping is predicted to experience a major increase in gross merchandise value (GMV) as a result of stronger economic conditions and a desire for larger festivities.
The majority of consumers are excited about purchasing luxury items, fashion, and gold, with a particular focus on fresh clothes, exquisite food, thoughtful gifts, and other items. Beauty and personal care items, home essentials, general commodities, and fashionable items are projected to be in high demand in the world of online retail, with a heavy emphasis on quality offerings.
Following strong sales results for passenger vehicles and three-wheelers in August, the automotive industry’s future appears positive. However, two-wheeler sales remain lackluster due to subdued rural demand resulting from insufficient rainfall. Monsoon shortages paired with low water levels might have a substantial impact on both rural and urban consumption. Reduced agricultural output could affect inflation and consumer sentiment in a range of businesses.
Despite recent decreases in gold prices, the jewelry industry may experience inflationary pressures. However, some consumers might take advantage of lower prices to expand their physical gold portfolios, with a significant drop from the recent peak. In summary, India’s festive season is poised to drive consumer spending across multiple sectors, although challenges such as weather-related factors and inflation may affect specific industries differently.