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The Indian festive season is witnessing a surge in demand for premium products, with consumers showing a preference for AI-enabled washing machines and smart air conditioners over mass-market items. This shift towards higher-end goods is being fueled by a combination of factors, including a growing desire for technologically advanced appliances and a recovery in consumer spending after the pandemic. While the mass market is showing signs of recovery, it is the premium segment that is truly driving growth, with strong demand across various categories.
To capitalize on this trend, companies are introducing attractive offers and flexible payment plans to ease the impact of inflation and entice more shoppers. Extended EMI schemes are proving particularly effective in boosting sales of premium products, particularly in metropolitan areas. This strategy is particularly beneficial for shoppers looking to upgrade their existing appliances or purchase new ones without straining their budgets.
The positive impact of a strong monsoon season on agricultural returns is further contributing to the festive shopping spree. As rural incomes improve, the demand for goods in the mass market is expected to increase significantly, adding another layer of growth to the overall festive season. This interplay between rural and urban demand is creating a robust market for both premium and mass-market products.
Several key players in the appliance and retail sectors are reporting impressive sales figures and optimistic outlooks. Godrej Appliances, for example, anticipates a strong performance from the mass segment during Diwali, while Haier Appliances India forecasts a 35% year-on-year growth in sales for the festive season. Retailers like Vijay Sales are also expecting significant growth in value sales, particularly driven by the increasing demand for premium products.
The trend of premiumization is not confined to appliances alone. Bata, a leading footwear brand, is witnessing robust demand for its premium athleisure and fashion footwear in tier-2 and -3 cities. This expansion of premium product sales beyond major metropolitan areas highlights the growing purchasing power and changing preferences of consumers across the country.
The festive season is also an opportunity for companies to introduce new products and promotions that cater to the diverse needs of consumers. Joyalukkas, a jewelry brand, is offering a gold rate protection plan to help consumers lock in current rates, while Haier is offering flexible payment plans with EMIs starting at Rs 994 to attract buyers in the mass market. This combination of strategic pricing, promotions, and product offerings is crucial for companies to succeed in the competitive festive market.
Source: Diwali Premium Cart: More Indians ordering AI washing machines and smart ACs this festive season