Festive buying gains traction

livemint.com:

NEW DELHI : Gold, furniture and packaged goods companies have reported a pick-up in festive season sales in October and expect the momentum to continue. Traditionally, it is a bustling quarter for retailers, driven by festivities, prompting consumers to go on a spending spree to buy goods for personal consumption and for gifting. Additionally, the ICC men’s cricket world cup has further boosted demand for liquor, food, large TV sets and packaged snacks.

Consumers are coming into stores, and demand has been good, jewellery chain Tanishq said. A significant number of customers opted for its gold exchange programme during this ongoing festive season to compensate for higher gold prices. “So far this year, it’s good, given the gold prices, given some amount of nervousness people have because of that.

We have put in place strategies for good growth. If customers come, we will grow very well. We will know (how it works out) as we complete the next six to seven days.

So, if you ask me from our planning point of view, we planned for good growth," Ajoy Chawla, chief executive of jewellery division, Titan Co. Ltd said. For Tanisqh, the seven days preceding Diwali account for nearly 30% of the December quarter’s business.

The first few days were marked by shradh, when consumers refrain from buying goods. This time around, the festive period is also longer, stretching till mid-November, while last year Diwali was celebrated on 24 October. “Exchange is a big driver this festive season and for the wedding season, especially because gold rates are high.