Consumer Spending Is Back With A Bang!

Consumers are willing to splurge once again on a range of products. This is just what the doctor ordered for the Indian economy.

- Ajita Shashidhar & Team BT

It’s a hot Tuesday afternoon at Anant Honda, the largest dealer of Honda motorcycles in Gujarat’s Anand district. Yet, the showroom is abuzz. Salesperson Karan Shah says the beeline of customers for test rides hasn’t abated since the Central government announced a new pay scale for its employees. After a 20 per cent dip in sales last year, this year’s festive sales may hit a new record. “I have sold 30 bikes to government employees in the past one month, which has never happened earlier,” says Shah. The Seventh Pay Commission recommendations raised the basic salary of four million government employees and six million retired employees by 2.57 times. And One Rank, One Pension directly benefits 1.8 million ex-servicemen. Shah says Honda’s attractive ₹2,000 discount (3-5 per cent) scheme for government employees was the game-changer. Clearly,with the additional salary disbursement starting to take place, the feel-good sentiment has set in.

In West Bengal, Durga Puja sales have just concluded. Most retailers claim significantly higher sales than last year. According to Vasanth Kumar, Executive Director, Max Fashion Retail, like- to-like growth this year across its stores in West Bengal and Kerala (which recently celebrated Onam) have increased by 30 per cent, compared to 16 per cent last year. Anirudh Dhoot, Director, Videocon Industries, says that sales from Durga Puja and Onam grew by 15 per cent: “By Diwali, I expect 25-30 per cent jump in sales.” Videocon’s festival sales last year grew barely 10 per cent.