Sectors in India Set for a Festive Comeback
New Delhi : With the festive season approaching, many sectors that have faced challenges are looking forward to a strong rebound. Increased consumer demand and festive spirits are expected to boost various industries. Here are the sectors that have experienced difficulties recently but are likely to bounce back, supported by industry data and initiatives from leading brands. The festive season brings hope and optimism, with businesses gearing up to meet the anticipated surge in demand. This period is crucial for recovery and growth, as companies implement strategies to attract consumers and enhance their market presence. According to ICRA, the GDP growth is expected to exceed 7% in H2 FY2025, on the back of pick up in Government capex and a pent-up demand from the rural economy during the festive months.
Automobile Industry
The automobile industry saw a major fall of its own as global supply chain disruptions and chip shortages hit its sales India’s total passenger vehicle (PV) sales fell 1.8 percent to 352,921 units in August 2024, compared to 359,228 units in the same period the previous year, reported the news agency ANI quoting data from the Society of Indian Automobile Manufacturers (SIAM). However, with chip supply improving and the launches of new vehicles in the market, the sector will see growth during the festive season, the Federation of Automobile Dealers Associations or FADA said. Brands from Maruti Suzuki, Tata Motors, and Hyundai are already witness to a rush in bookings headed by major lines such as the popular Grand Vitara, Invicto etc; Tata Motors’ range of electric vehicles and ICEs line – Curve, Safari, Harrier and Punch; and the latest Hyundai models, including the new Creta.
As the automotive industry rebounds, the tire market, particularly for premium options, is poised for growth. Yokohama is at the forefront of this trend, anticipating increased demand for its high-performance SUV tires as more consumers invest in new vehicles. Yokohama has already launched customized marketing initiatives nationwide to showcase its cutting-edge tire technology, this festive season.
Jewelry
As India approaches the festive season, the jewelry sector is set for a robust revival. According to the India Bullion and Jewellers Association (IBJA), the demand for gold jewelry is expected to increase by 15-20% this festive period, fueled by a resurgence in consumer spending and a renewed affinity for traditional adornments. Consumers are gravitating towards gold, diamonds, and gemstones, with gold jewelry alone projected to see sales of approximately 750 tons in 2024, as reported by the World Gold Council. The pandemic has sparked innovation, leading jewelers to blend traditional artistry with contemporary designs, appealing to a diverse audience from millennials to seasoned collectors. Additionally, e-commerce has transformed shopping habits, with online sales expected to account for 30% of the overall jewelry market this year. As consumers seek meaningful purchases that symbolize celebration, the sector is poised for a vibrant comeback, reflecting evolving tastes and enduring traditions.
Consumer Electronics
The consumer electronics sector in India is poised for a significant resurgence this festive season, driven by increased consumer demand and technological advancements. According to the India Brand Equity Foundation (IBEF), the market is projected to reach USD 20 billion by 2025, growing at a CAGR of over 20%. Smart devices, including smartphones and smart home appliances, are leading the charge, with smartphone sales expected to hit 200 million units in 2024. The demand for smart TVs is also on the rise, projected to grow by 30% year-on-year, fueled by consumers seeking enhanced entertainment experiences. During the festive season, retailers often see sales spikes of 30-40% compared to other months, with e-commerce platforms launching aggressive promotional campaigns. This combination of innovation and consumer enthusiasm positions the sector for a vibrant comeback, as technology continues to play an integral role in modern lifestyles.
Real Estate
India’s real estate market witnessed a 10% decline in property registrations in Mumbai during the Ganesh festival in 2024, with only 7,500 properties registered compared to 8,300 in 2023. This drop is attributed to higher interest rates and cautious buyer sentiment. However, the festive season is expected to boost sales, driven by competitive offers from developers like Godrej Properties and Brigade Group, aiming to attract first-time buyers. Analysts predict a 15-20% sales increase during Navratri and Diwali as home loan rates stabilize.
Retail (Apparel & Fashion)
India’s apparel and fashion retail sector is gearing up for a robust festive comeback, with sales expected to rise by 15-20%. The ‘Swipe-up’ generation—Gen Z and millennials—are driving this surge, lured by exclusive festive deals and influencer-driven campaigns. Major e-commerce platforms like Myntra and Ajio, alongside offline brands like Reliance Trends, are already witnessing increased consumer interest. India’s fashion retail sector, valued at over $100 billion, is seeing growing demand from both urban centers and smaller towns. Tier II and III cities, which now account for 40% of total sales, are experiencing heightened demand for festive collections, boosted by deeper digital penetration and online accessibility. Retailers are focusing on fusion wear and ethnic collections, tapping into the festive spirit. Despite inflationary pressures, double-digit growth is anticipated, making this festive season pivotal for the apparel and fashion industry.
These sectors, having faced downfalls, are now optimistic about making the most of the festive period for rebounding seriously. Be it cars to travel, the industry is poised for a strong recovery as key brands gear up to exploit the festive cheer among the consumer to reach their coffers at an appropriate end of the year.