Apparel, footwear and home appliance sales grew over 20 per cent during Navratri-Dussehra, while smartphone volumes declined amid rising memory-chip costs and higher device prices
Sales of apparel, footwear and home appliances grew by more than 20 per cent year-on-year during the Navratri-Dussehra shopping period, supported by festive financing schemes and consumer purchases ahead of anticipated price increases. Air conditioners emerged as a standout category, recording particularly strong demand, while smartphones, laptops and televisions faced pressure from rising memory-chip costs.
Automobile retail sales, meanwhile, registered modest growth against a high base from last year, when a rush of purchases followed goods and services tax (GST) rate cuts. Industry estimates put vehicle sales during Navratri, between October 11 and 19, at around 1.03 million units, compared with 1.01 million in the corresponding period last year.
According to media report, Sai Giridhar, president of the Federation of Automobile Dealers Associations (FADA), said the comparison was affected by unusually strong demand last year following the GST reduction. Car purchases had largely stalled for about a month ahead of the tax changes before buyers returned to the market, creating a higher base for comparison.
Ashutosh Varma, chief business officer at Hero MotoCorp’s India business unit, said the company’s Navratri retail sales exceeded last year’s levels despite the strong base. Scooter sales were among the better-performing segments, he added.
Apparel, Footwear And Appliances Lead Demand
Retailers reported broad-based growth across clothing, footwear and household appliances as consumers stepped up festive purchases. Lifestyle International chief executive Devarajan Iyer said average billing had risen by 6-7 per cent, while same-store sales growth had accelerated to more than 10 per cent.
Woodland, the lifestyle and footwear retailer, reported sales growth exceeding 20 per cent. Electronics retailer Vijay Sales recorded a similar increase, with air-conditioner sales climbing by more than 50 per cent. Appliance manufacturers LG, Godrej Appliances, Haier and Lloyd, owned by Havells, also reported growth of more than 20 per cent during Navratri, according to industry executives.
Kamal Nandi, business head for appliances at Godrej Enterprises Group, described the period as the strongest Navratri for the home-appliances industry in five to six years, with demand improving across product categories.
Air-conditioner sales in southern markets rose three to four times, while sales in western markets increased more than eightfold, Nandi said, attributing the surge partly to above-normal temperatures. The industry recorded overall growth of 18-20 per cent, including demand from mass-market consumers in tier-two and tier-three cities. Volume growth is expected to reach 10-15 per cent, he added.
Consumers also advanced purchases in anticipation of price increases after Diwali, Nandi said.
Financing Schemes Support Festive Purchases
Manufacturers and retailers relied on financing offers to sustain demand, particularly in price-sensitive categories. Appliance companies extended equated monthly instalment (EMI) tenures and widened financing options for entry-level products to make purchases more affordable.
Companies also deferred planned price increases from October until after Diwali, scheduled for November 8, according to industry executives.
The report further added that, Sanjay Chitkara, co-chief sales and marketing officer at LG Electronics India, said improved affordability following last year’s GST rationalisation, alongside special festive EMI schemes, had supported consumer demand.
Haier India chief executive Satish NS said the strong performance during Navratri had created a favourable base for the Diwali shopping period.
Iyer of Lifestyle International pointed to a shift in consumer spending patterns. After several years in which travel and hospitality accounted for a larger share of discretionary expenditure, consumers appeared to be directing more spending towards retail purchases, he said.
Suitcase sales, for instance, had remained subdued this year, while apparel, handbags and footwear attracted greater spending, Iyer added.
Smartphones And Televisions Face Price Pressure
The festive momentum did not extend to all consumer categories. Smartphones, laptops and televisions faced weaker unit sales as repeated price increases, driven by a sharp rise in memory-chip costs, pushed some products beyond consumers’ budgets. Premium devices proved more resilient than products aimed at price-conscious buyers.
Industry executives estimated that prices of memory-related components had increased by 15-40 per cent compared with levels around last Diwali, reflecting a broader increase in memory-chip costs.
According to Counterpoint Research, online smartphone unit sales during Navratri declined 16 per cent year-on-year. The All India Mobile Retailers Association estimated that sales volumes at physical retail stores fell by nearly 20 per cent over the same period.
Despite the decline in units sold, smartphone sales value across India remained almost flat, the retailers’ association said, indicating that higher prices helped offset the reduction in volumes. Gujarat was an exception, recording 15 per cent growth in smartphone sales volumes.
The divergence between stronger demand for apparel and appliances and weaker smartphone sales highlights the impact of affordability on festive consumption. While financing schemes and expectations of future price increases encouraged purchases in several categories, higher component costs constrained demand for electronics, particularly among buyers sensitive to upfront prices.
