With Diwali over and Christmas and New Year to look forward to, the festive season so far seems to have fared well for brands across categories.
Typically, about 15-30% of business for brands comes from the festive months that start from Ganesh Chaturthi and go on till New Year. This year too, brands across categories are looking to net in about 20% of their revenues from the festive season. Despite a few hiccups, the season seems to have fared well for brands.
“This festive season began with some challenges for the industry. However, everyone tried to move past keeping a positive attitude towards achieving their sales targets. For Mitashi as a brand, we have seen growth in every category this festive season thanks to our multi-channel availability and access to finance offers. The country over the past few months witnessed the Kerala floods, increased fuel prices and the rupee depreciation against the dollar by nearly 15% since the beginning of the year, which resulted in a significant rise in the input costs. We avoided making any changes during the festive season. However, a few of our products will witness marginal price adjustment to account for this,” said Rakesh Dugar, CMD, Mitashi Edutainment.
Patanjali, the FMCG brand from Baba Ramdev had launched its clothing brand Paridhan to coincide with Diwali. The brand that offered a special 25% discount for the five days of Diwali saw good traction. Spokesperson S K Tijarawala said they received overwhelming response on the opening day and saw significant footfall.
The auto industry too had a new entrant this festive season — Hyundai’s all new Santro.
“Hyundai had a great start this festive season with the launch of all new Santro. We received phenomenal response and over 32,000 bookings and 130,000 enquiries within a month. We delivered over 10,000 Creta, Elite i20, Grand i10 and Santro on the auspicious day of Dhanteras. However, we would still like to proceed with cautious optimism as the industry has faced a few challenges in the past few months,” said spokesperson from Hyundai.
“In the month of October, we achieved the highest-ever domestic sales with 52,001 units and a growth of 4.9%, on the strong demand pull created by Santro,” the spokesperson said.
While online sales dominated the festive season, retail sales went down. But Abhishek Yadav, Design Head, Spykar Lifestyle, says both online and offline channels saw good growth this year.
“Spykar has fared quite well this Diwali. A great collection coupled with exciting offers fetched us good results. The brand has outperformed, especially in the West, UP and Bihar. Spykar did well at the online marketplaces as well. We do not consider e-commerce as a threat as it is an added sales format. Any format that helps in bring us our revenues is always beneficial. Retail serves a set of audience who are definitely more inclined to offline buying. Retail too has its own set of exciting offers — hence both channels shape up independently,” said Yadav.