Price promotion reveals mixed Diwali retail results

November 13, 2008

The Diwali festival season is traditionally an important period of the year for Indian retailers. Given the sectors current state the sector hoped for a boost in sales and spend, while the overall lift didn't materialise there was good news for some sectors.

From sales figures of manufacturers, retailers and brands that have gone public with results it is possible to get a sense of how India's consumers are willing to spend disposable income.

Discounting to drive sales

While some figures make impressive reading, remember that this year witnessed an increase in discounting and price led promotions to generate sales.

  • Ambience mall - Adidas Mall in Gurgaon www.india-insights.co.uk

  • Future Group - India's biggest domestic retailing and consumer finance group - report Diwali sales up 18% on last year.

Strong home entertainment figures

Poor auto performance

  • Maruti Suzuki group sales fell 8%, worryingly their - thought to be - resilient compact car portfolio also dropped 8% with sales of 43,434 units, down from 47,077 units in October 2007.
  • Motorcycle sales at Bajaj were down 34% to 163,000 units, versus 248,000 units last year.

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