This festive season, mission is possible: Companies to stockpile weapons of mass consumption

economictimes.indiatimes.com:

Companies making smartphones, refrigerators, wearables and twowheelers said they are producing up to 20% more inventory than last year for the upcoming festive season. They expect a demand revival during the country’s largest consumption period on the back of a good monsoon and stable inflation.

“There’s pent-up demand in rural India, which will be unleashed by the monsoon. People there have not bought much in the past five years, which is Covid onwards, while the premiumisation trend is continuing strong in urban India,” said Kamal Nandi, business head at Godrej Appliances.

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Most companies said they are going to run production at 100% from this month, with output having already begun for Onam in September. The industry expects festive sales this year will be the best since Covid, including at entry level, at least in electronics and two-wheelers. It also expects to match Diwali 2021 demand for smartphones, when lockdown-induced demand drove record sales.

The Met Department has predicted an above-normal June-September monsoon.


Monsoon Momentum
This has spurred expectations of a revival in farm output and rural incomes that will further boost overall growth.


While two-wheeler manufacturers say the industry may be able to cross the FY19 record of 21 million units