Inflation unlikely to dim festive sales: Crisil
Many Indian retailers have high hopes for revenue growth this festive season with ambitious targets and large-scale sales both on- and offline. The high inflation rates and subsequent price increases are unlikely to dampen the festive shopping spirit, according to ratings agency Crisil.
Following on from the last few years of festive seasons with various levels of pandemic restriction, this year represents a return to normality for many fashion and lifestyle retailers. Consumer sentiment this season is favourable, Crisil Ratings’ senior director Anuj Sethi told ET Retail.
However, this year prices are higher due to inflation and some businesses are offering slightly lower discounts than previous years. Despite this, categories such as fashion are doing well and helping to boost overall sales, according to Sethi.
Gold jewellery sales are also expected to see growth this festive season, according to Crisil, although not to the same extent as fashion. The winter wedding season should give gold jewellery sales a boost as the traditional gifting option.
India’s e-commerce giants including Flipkart, Amazon India, and Nykaa have launched festive sales and are looking to acquire new customers, especially in rural areas, which are increasingly embracing e-commerce. With footfall in brick-and-mortar stores reaching close to pre-pandemic levels, offline retail sales are also expected to perform well.
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