
Summary:
Sales data from the Republic Day weekend shows that, despite a dip in middle-class spending, demand for premium items remains high. Retailers and durable goods firms increased their sales by 10-15% compared to the previous year, driven by high-end products such as large-capacity refrigerators, air conditioners, TVs, washing machines, and smartphones priced above Rs. 30,000. The fashion, lifestyle, and clothing industries also saw an 11-12% increase, fueled by higher demand for winter and wedding wear.
Despite fewer discounts this year and limited winter gear supply, retailers responded by focusing on simple financing options instead of offering large discounts. Mr. Nilesh Gupta, Director of Vijay Sales, emphasized the importance of affordable installment plans, helping consumers upgrade to premium items like mobile phones and home appliances. Haier saw a 30-35% increase in premium product sales. Premiumisation continues to be the dominant trend in retail, with significant growth in beauty, home décor, toys, baby items, and health gadgets across various regions.
Source: IBEF
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