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  4. Will the festive season be bright for business?

Will the festive season be bright for business?

In the first of a two-part series, Forbes India analyses the prospects of the festive season for ecommerce logistics, household appliances, rural demand, travel and hospitality, and bank loans

By Forbes India
Published: Sep 5, 2022 04:31:55 PM IST
Updated: Sep 6, 2022 05:00:59 PM IST

20 percent of consumers plan to shop more this festive season, compared to 2021. Image: Creative Touch Imaging Ltd./NurPhoto via Getty Images 20 percent of consumers plan to shop more this festive season, compared to 2021. Image: Creative Touch Imaging Ltd./NurPhoto via Getty Images

The last two years saw how lockdowns and various Covid-induced curbs across the country impacted consumer sentiment. ​This year, with greater mobility, and uptick in consumer demand and sales, people across sectors hope things will be different. As Devika Saigal, CEO of M2M Ferries tells Forbes India, "We had many struggles the last two years with lockdowns. We have made major investments so we are really hoping that the festive season will give us a boost." The India Consumer Sentiment Index survey for September 2022—with a sample size of 10,014 people across rural and urban India—by data intelligence company Axis My India states that 48 percent of consumers tend to shop more during the festive season compared to the rest of the year, as reported by the Financial Express, which also states that 20 percent of consumers plan to shop more this festive season, compared to 2021.

Forbes India spoke with companies, analysts and industry experts to understand the impact of inflation and rising interest rates on consumer sentiment and demand, and the prospects of the upcoming festive season for various sectors. In the first of the two-part series, we look at rural demand, ecommerce logistics, household appliances, travel and hospitality, and bank loans. 

Also read: Auto, real estate and ecommerce feel the festive cheer

Cheer missing in rural markets

Rural inflation has been higher than urban inflation for over a quarter. Image: Manjunath Kiran / AFPRural inflation has been higher than urban inflation for over a quarter. Image: Manjunath Kiran / AFP

Rural inflation has been higher than urban inflation for over a quarter, and leading FMCG companies have been struggling with margins in a bid to arrest the steady decline in volume growth. These companies are looking to boost sales during the upcoming festive season. Here's what experts are saying. Read full story here

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Festive season demand for home appliances, white goods subdued

Image: Creative Touch Imaging Ltd./NurPhoto via Getty ImagesImage: Creative Touch Imaging Ltd./NurPhoto via Getty Images

The demand for home appliances often escalates during the festive season, though factors such as inflation and discretionary spending impact retail buying. A dipstick for this segment shows that while demand has improved year-on-year from a low base last year, sales in the second half of the year are expected to be better than in the first half. Read full story here

Ecommerce logistics players gear up for heavy load

For ecommerce logistics, the demand through the year is stable.For ecommerce logistics, the demand through the year is stable.

The last 12 months have been like a golden run for Indian ecommerce logistics players. The demand throughout the year has been stable. But according to analysts, demand goes off the charts during the festive season and they are predicting a 2-3 times increase in volumes. Read full story here

Travel and hospitality sectors hope for a take-off

“This time around, festive travel feels like pre-pandemic normal,” says Vipul Prakash, COO at MakeMyTrip. Image: Creative Touch Imaging Ltd./NurPhoto via Getty Images“This time around, festive travel feels like pre-pandemic normal,” says Vipul Prakash, COO at MakeMyTrip. Image: Creative Touch Imaging Ltd./NurPhoto via Getty Images

While relaxation in lockdown gave rise to revenge travel, propelling further growth for the tourism sector, the hospitality industry is also witnessing a revival, thanks to the upcoming holiday and festive season. Read full story here

Uptick in sales and consumer spends fuel need for home, personal loans

Data from the Reserve Bank of India (RBI) points to a clear growth in home and unsecured personal loans. Image: Frédéric Soltan/Corbis via Getty ImagesData from the Reserve Bank of India (RBI) points to a clear growth in home and unsecured personal loans. Image: Frédéric Soltan/Corbis via Getty Images

Demand for home loans has grown steadily through the year as residential home sales have seen an increased demand on account of low home loan rates as well as lower inventory across large cities. Though interest rates have been on the rise in recent quarters, dampening the demand for loans to some extent, but experts believe it is unlikely to alter the momentum. Read full story here

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