Down to the wire: Last-minute buys add spark to Diwali

Diwali is like a litmus test of consumer sentiment, but this time the industry is still waiting for the 'last-minute' shopping trends to emerge before giving a verdict.

- Sharleen D'Souza, Akshara Srivastava, Ishita Ayan Dutt, & Shine Jacob

The low-key mood reflected in the September quarter financial results of some of the marquee fast-moving consumer goods (FMCG) companies was yet to be replaced with an all-out shopping mania till the weekend before Diwali. Last-minute shopping is more spread out now with some retailers pinning their hope on the weekend after Diwali, expecting sales to peak by then.

Nilesh Gupta, managing director of Vijay Sales, a prominent electronics goods chain headquartered in Mumbai with stores across the country, told Business Standard that the coming weekend was expected to do well as consumers would flock stores to ensure they did not miss out on the Diwali offers. As of last weekend, footfall in markets picked up, he said, adding that mobile phones and large screen TVs were performing especially well.

"The coming few days will be crucial, we expect to clock a 7-9 per cent growth (in value) this Diwali." Last Diwali, the year-on-year (Y-oY) growth was estimated at around 10 per cent.

Demand failed to pick up in the early part of the festival season because of widespread rain in several parts of the country besides the overall consumption slowdown. Avneet Singh Marwah, chief executive officer (CEO) of SPPL, which is a brand licensee of Kodak, Thomson, White Westinghouse and Blaupunkt, said: "There was a slowdown till Navratri, but sales have picked up since then and we expect this trend to continue till Diwali. We've witnessed a growth of 15-20 per cent year-on-year." The weekend business wasn't too robust in fashion and lifestyle retail, but it picked up during the week just days before Diwali. "In the last two days, like-for-like sales are better than the weekend and are in mid-single digit. We are waiting and watching how the situation pans out even post Diwali as the wedding season approaches," said Devarajan Iyer, CEO at retail chain Lifestyle.