Jewellery and fashion retailers hope for demand boost during festive, wedding season
Fashion and jewellery retailers are hopeful that festivals and the wedding season in the second half of the year will create more demandas discretionary spending has been subdued, reported TOI. A good monsoon, which gives cash to the people employed in the agricultural sector, is also expected to boost consumption.
There was a rise in consumption towards the end of March quarter but full recovery in demand still remains. The mass segment has been impacted the most as there has been a slowdown in spending from the lower income households. The premium segment continues to do well.
The mass segment, weighed down by economic pressures, is displaying “cautious spending behaviours” and is recovering at a slower pace, Joy Alukkas, chairman and managing director of Joyalukkas Group told TOI.
“The biggest requirement in the market is for the bottom of the pyramid to come in and spend,” said Kumar Rajagopalan, CEO at Retailers Association of India (RAI).
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Retailers are worried as they had planned for a bigger growth, but the demand has remained flat, added Rajagopalan.
The upcoming Union Budget will be important for the industry, which will keep a close eye on it. Within middle-income households, those earning between Rs 5-8 lakh annually seem to be more strained financially, industry executives indicated.
“FY25… things may improve but it is good if we plan that the uptick is gradual. Maybe we are also looking at a good monsoon,
