Independence Day sales surge up to 25% yoy

Kolkata: This Independence Day unlocked significant gains for brands, retailers and ecommerce platforms, as sales surged by up to 25% in terms of value and 5-7% by volume across categories from last year. It has set a positive tone for the festive season, beginning with Onam later this month and continuing till Diwali - India's biggest consumption period.Volumes grew even in smartphones, laptops and television sets, where prices have surged by up to 40% in the past 10 months due to higher input costs. Several iPhone and television models were sold out on Flipkart, said an executive.An Amazon India spokesperson said demand surged over twofold from the norm across categories, including smartphones, electronics, fashion and beauty, with more opting for premium products.Online-focused TV manufacturer Super Plastronics sold out inventory across its licensed TV brands - Kodak, Thomson and Blaupunkt - on both Amazon and Flipkart.The spurt in value sales was fuelled by a mix of higher showroom footfall, volume growth and premiumisation, with higher price too playing a factor in some categories, said top company executives.133281128Demand Better Than ExpectedHowever, the impact was slightly softer due to discounts, indicating a broader expansion in consumer demand, they said.India's largest retail chain, Reliance Retail, clocked its best Independence Day sales, with more than 20% growth across grocery, electronics, apparel and its online platform JioMart, from last year.Department store chain Lifestyle reported double-digit on-year sales growth, led by higher in-store traffic. Electronics retailer Vijay Sales posted more than 20% growth as volumes grew 5%. "It's been an excellent Independence Day sale this year, whereby the quarter will show good growth," said Devarajan Iyer, chief executive at Lifestyle International. "Consumer sentiment is good, people are coming back to the stores, and sales surge is driven by volume growth rather than billing value."Online retailers reaped better-than-expected sales, according to brands and marketplaces. Flipkart, for instance, recorded sales ahead of estimates across categories including mobiles, large appliances, electronics, furniture, home, lifestyle and groceries.Super Plastronics chief executive Avneet Singh Marwah said the sell-out of its entire TV stock was unexpected, considering demand for the year so far had been muted. "We grew by 14% year-on-year, but if we had stock, we could have easily achieved 20% growth," he said.Independence Day and Republic Day sales are among the largest consumption periods outside the festive season. Marketers have promoted them for nearly two decades, initially as a way to clear inventory. Ecommerce marketplaces such as Amazon and Flipkart began their Independence Day sales in the second week of August, while offline retailers stepped up promotions from Thursday-Friday.Haier India, the country's third-largest electronics maker, said I-Day sales were "excellent" across segments, driven by premium categories such as front-load washing machines, side-by-side refrigerators, and TVs of 55 inches and above. The company recorded 45-50% growth by value and nearly 30-35% by volume from last year, as per chief executive Satish NS, saying, "The indications are extremely positive for the festive season."