“We anticipate that consumers are likely to celebrate this festive time with renewed fervor, given that the past two years have largely been spent indoors,” said Anil Viswanathan, vice president of marketing at Mondelez. “However, we are cautiously optimistic.” Mondelez, which makes Cadbury and 5-Star chocolates, is the country’s largest chocolate company.
The festive season, which will kick off around the end of August with Raksha Bandhan, Onam and Ganesh Chaturthi and last until Diwali in October, is India’s biggest drinking season.
However, the festive season of the past two years has been marked by Covid-induced supply disruptions and intermittent lockdowns that have impacted consumer buying behavior.
“We believe this year’s holiday season will be robust,” said Nissan Joseph, chief executive of footwear retailer Metro Brands. âAdditionally, we are dealing with the remnants of the third wave from last October, so we remain optimistic.â
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He said the company had mitigated the impact of a prolonged difficult supply chain environment and raw material price increases. âWe managed inventory ahead of time to help mitigate any significant price spikes,â Joseph said.
While demand may have slowed at present due to the inflationary environment, marketers expect consumers to release pent-up demand around the holiday season, helped by price hikes. wages, bonuses, an easing in commodity prices that led to lower consumer prices for packaged edible oils, and a good monsoon.
Godrej Appliances business manager Kamal Nandi said the outlook for the festive season is positive as consumers who postpone shopping now are expected to buy then. The white goods market has been slowing since mid-May due to inflation.
“A lot will depend on how inflation is controlled, but expectations are positive for discretionary spending to improve,” Nandi said.
A spokesperson for
which makes packaged food and personal care products, said: ‘We expect a good resumption of the festival this year as it would be the first festival after two years of restrictions.
ITC’s supply chains are designed to ensure that festival packs are available across all channels with the start of the festival season, the spokesperson said. âHowever, high prices remain a concern,â he added.
Retailers and businesses across all categories said they were making sure they were equipped to meet demand in physical stores and on e-commerce platforms.
“All of our digital assets for the holiday season are sold out because they were part of long-term plans,” said Amit Dutta, managing director of high-end and gourmet packaged food retailer Le Marche Retail. He said existing concerns about stock swings due to high inflation would be short-term.
Consumer electronics companies predict sales growth of 15-20% in 2019.
âWe are seeing a slower pace of growth and demand pressure, especially for entry-level products, which may continue for the next two months, but we expect a good recovery during festivals, mainly driven by greater capacity and improved technology products as consumer sentiment improves,â said Deepak Bansal, vice president of LG Electronics, the countryâs largest home appliance maker.
The companies said they plan to start peak production for the holiday season from August.