“This yr, the sector is predicted to obtain a much-needed enhance — each in city and rural markets — throughout the festive interval with augmented visitors constructing throughout trendy commerce and ecommerce,” a spokesperson for ITC, which makes the Fabelle sweets, Engage fragrances and Master Chef frozen snacks, mentioned. “We are planning to actively take part within the upcoming festive season with gives, centered sampling, advertising activation and real-time second advertising,” the spokesperson added.
Consumer-facing corporations see the largest annual spike in demand throughout October-December. Even within the pandemic-hit final yr, some restoration was recorded within the festive quarter with worth gross sales progress of seven.3%, in line with Nielsen information.
“There is a large surge in reserving ‘hot-spots’ inside shops by corporations; show bookings are at an all-time excessive this yr,” mentioned Amit Dutta, chief government at meals retailer chain Le Marche Retail. “This can also be as a result of inside offline shops, individuals are lowering their time shopping via the shops,” Dutta mentioned.
Hot-spots are places inside shops which shoppers are unlikely to overlook. A whole lot of direct-to-consumer corporations too are partnering with premium retailers to quickly construct scale, Dutta added.
Executives mentioned the optimism, nevertheless, hinges on there being no third wave of the pandemic.
Kunaal Kumar, managing director of Modern Bazaar that runs 15 premium supermarkets within the National Capital Region, mentioned the chain expects gross sales to double this festive season if there’s no third wave, and that it is ramping up provides together with imported sweets and unique gourmand merchandise.
People had been very scared because of the pandemic final yr and couldn’t have a good time correctly, he mentioned, including: “This yr, it’s going to be a superb Diwali.” Kumar mentioned corporations like Mondelez plan to place shop-in-shops in Modern Bazaar retailers. “FMCG corporations are getting very aggressive. Other FMCG corporations are approaching us for such shop-in-shops for Diwali too,” he mentioned.
The anticipated surge in demand has led to corporations advancing distribution and commerce channel planning. Mondelez India senior director (advertising) Anil Viswanathan mentioned the chocolate maker plans to leverage the festive interval constructing on sturdy campaigns. “We consider our manufacturers like Cadbury Dairy Milk and Oreo are discovering extra favour with shoppers. We are effectively positioned to cater to demand via sturdy focus throughout basic and trendy commerce and ecommerce.”
Executives added that if August gross sales had been a sign, then the height season might overtake final yr’s Diwali gross sales. Bakery merchandise maker Bonn Group director Amrinder Singh mentioned corporations are pushing extra shares on cabinets and that it noticed a 20% enhance throughout the current Rakhi competition.
“After a devastating second wave, now the market is gearing up for the festive season to make up for the losses. We count on festive season gross sales to exceed pre-pandemic ranges and definitely better than final festive season,” he mentioned.
Biba Apparels managing director Siddharath Bindra mentioned the ethnic-wear chain is buoyed by shopper response throughout the Rakhi competition when gross sales touched 80% of pre-pandemic ranges. He mentioned he’s now hoping for a better Diwali. “We are geared as much as do 100% and even 110% of pre-Covid if there isn’t a third wave,” Bindra mentioned.
A report by shopper information intelligence consultancy Axis My India mentioned 42% of households have indicated their intent to spend extra or the identical this festive season in contrast with final yr, with discretionary spending already up 21% yr on yr in August.