Diwali brought cheer to retailers and manufacturers as the news pouring in from across India is of a consumption spike across categories ranging from jewellery, white goods, auto, sarees, home decor, and sweets. The growth is in line with the trends forecast in August and September, when electronic permits for shipping goods across States touched record highs, showing increased factory orders and high festive demand.
The Confederation of All India Traders (CAIT) estimated that on Diwali, retail markets across the country registered a record trade of ₹3.75-lakh crore. According to CAIT the momentum is likely to continue through upcoming festivals of Goverdhan Pooja, Bhaiya Dooj, Chhath Pooja and Tulsi Vivah.
On Dhanteras this year, gold jewellery sales saw a rise of 15–25 per cent compared to last year, said Colin Shah, MD, Kama Jewelry. There was a big surge in low-ticket purchases, which contributed to the overall growth in festive sales. Strong demand came in from Tier 2 cities along with metros.
H Mohanlal Jain, Director, All India Gem and Jewellery Domestic Council and proprietor of Lalchand Hastimal Jewellers in Secunderabad, said, “Gold jewellery, silver, diamonds, and bullion sales were very good in the twin cities and suburbs. As per my estimate, sales were 30 per cent more than last year, quantity-wise. Value-wise, it will be more. Most of the jewellery showrooms were jam-packed.”
This year, gold and silver coins were available on instant commerce apps. Blinkit founder and CEO Albinder Dhindsa posted on X (Twitter) an image of 100 silver coins going out on a single order, saying the coins were flying off the shelves.
Cars and bikes vroom
Automakers reported strong festival demand. Manish Raj Singhania, President, Federation of Automobile Dealers Associations (FADA), said, “Discussions among dealers suggest that Dhanteras and Diwali this year are poised to experience exceptionally strong retail performance. The momentum observed in the two-wheeler and three-wheeler segments mirrors that of Navratri, while there is a modest increase in passenger vehicle sales compared to the Navratri period.”
Shashank Srivastava, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India, said, “This Dhanteras, we have seen brisk deliveries. It is estimated that from Dhanteras to Bhai Dooj, industry deliveries would be in the range of 55,000 to 57,000 vehicles, which would be a growth of over 21 per cent. Last year, the industry delivered around 45,000 units during this period.”
Consumer durable makers said they saw a strong uptick in premium products. Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances, said, “We witnessed strong consumption trends during the Diwali season for premium products across categories led by urban markets and large format stores.” Aggressive financing schemes have contributed to growth in sales. The consumer durables industry witnessed a value growth of 20–25 per cent and volume growth of 5–10 per cent during the festival period spanning across October and November over the same period last year.
In Chennai, saree counters did brisk business. “We had nearly a 10 per cent increase in sales during Diwali this year,” said Shankar Kumaraswamy, Director, RmKV Silks.
According to Shriram Subramanian, Founder and Managing Director, InGovern Research Services, “The recent festive sales boom has been the highest since the pandemic years. Consumerism and premiumisation are the trends as customers from ever smaller towns seek more goods. “
K Giri, Secretary General, Empower India, “The festive sales seem to have provided an impetus to the Indian economy. By our estimates, MSMEs are vying for the ₹90,000 crore pie. The network of established players like Amazon and Flipkart has played a big role for small sellers.”