17 September 2023, Mumbai
India's clothing and lifestyle retailers are gearing up for a bumper festive season, with consumers expanding their spending budgets after a pandemic-induced slowdown.
Rain of offers
Retailers are offering huge discount schemes across different product categories, with lower price points and special festive packs as the base of their promotional and marketing strategies.
The festive season in India starts with Onam in August and covers Ganesh Chaturthi, Durga Puja, Dussehra, Diwali, and Bhai Dooj all the way till Christmas in December, interspersed by the wedding season.
Sweet spot
It is one of the most important times of the year for retailers, accounting for a third of total sales.
This year, consumer sentiment is positive, with many planning to increase their spending on apparel, accessories, and lifestyle products.
This is partly due to an increase in per capita GDP, which is now hovering around the $2,500 mark. Luxury brands are also witnessing significant traction in India, indicating a willingness to spend on premium products.
RAI
The Retailers Association of India (RAI) forecasts a robust growth of 10-11 percent during the festive season this year.
The association's CEO, Kumar Rajagopalan, says that the upper-middle class and the middle class are inclined to spend during festivals, which will drive focus to premium products across various categories.
Inventory Management; Retailers have managed their inventory levels well this year, after learning from the previous year when they were forced to offer huge discounts to clear unsold inventory. This is likely to keep margins healthy during the festive season.
Byouency
Overall, the outlook for India's clothing and lifestyle retailers is positive for the upcoming festive season.
With consumers eager to spend on new clothes and accessories, retailers are well-positioned to capitalize on the demand.
