KOLKATA: Shoppers could also be slicing down on consumption of each day requirements and deferring buy of attire and automobiles, however smartphones and white items appears to have bucked the pattern.
Newest knowledge by market researcher GfK present unit gross sales of merchandise like smartphones, good audio system, washing machines, fridges and air-conditioners have grown at a sooner tempo within the six months from January to June in comparison with similar interval final yr.
These classes have additionally grown sooner by worth gross sales in the identical interval from final yr as per the researcher indicating shoppers are shopping for costlier merchandise because the tempo of progress has been increased than the worth rise undertaken this yr.
Smartphones unit gross sales have grown 9% in offline shops within the first six months from four% final yr. Whereas in on-line, smartphone quantity gross sales have virtually doubled to 62% between Jan-June in opposition to 33% in the identical interval final yr, as per GfK, which is the one firm which tracks precise gross sales not like different researchers monitoring shipments.
In home equipment, the amount gross sales progress has been 15% within the first half of the yr in opposition to a contraction of four% in unit gross sales in the identical interval of 2018. Even for shopper electronics, which incorporates tv and audio merchandise, the expansion has been 2% in quantity gross sales regardless of an virtually flat marketplace for televisions on this interval since related good audio system grew by 39%, GfK famous.
Trade executives mentioned Indian shoppers now take into account smartphones and home equipment as requirements and therefore shopping for them, whereas they’re additionally keen to purchase novelty merchandise like good and related audio system. Availability of low-cost 4G knowledge too has pushed smartphone gross sales.
CEO Avijit Mitra of Croma electronics retail chain owned by the Tata-owned Infiniti Retail Ltd, mentioned shoppers are shopping for, however it’s as per their requirement not like earlier, once they would in all probability purchase a number of merchandise on the similar time
“There may be want and demand for electronics and devices. Shopper aspiration and money too has not decreased. However because of the sentiments, they’re prioritising their purchases which has additionally slowed down the premiumisation drive,” mentioned Mitra.
GfK India managing director Nikhil Mathur mentioned AC and fridge drove gross sales of home equipment on account of excessive temperature throughout summer season, whereas washer gross sales has been buoyant on account of its utility.
“Progress this yr has been led by first time consumers, upgraders and evolving shopper wants. Moreover the mega cities, consumption in cities with lower than 5 lakh inhabitants is choosing up,” he mentioned.
Panasonic India CEO Manish Sharma mentioned final yr progress had slowed down in comparison with 2017. “So, there was a variety of pent-up demand which has pushed progress of electronics this yr,” he mentioned.
In distinction, progress in FMCG sector slumped previously 4 consecutive quarters since July-September 2018, each by worth and quantity. The auto business is battling a slowdown with July gross sales the steepest fall in 20 years. Gross sales of white items have been down final yr because of the transition to Items and Providers Tax regime which elevated costs.
Even on a quarter-on-quarter foundation, progress in home equipment and tv has been far more in April-June 2019. Nevertheless, smartphone gross sales progress had slowed down in offline retail from 11% in April to June 2018 to eight% in final quarter, however on-line gross sales progress doubled to 68%, which GfK attributed to launch of huge ticket on-line unique fashions.