Have Money, Will Buy! Festive online sales off to fine 'premium' start

Kolkata: India's surging affordability quotient is on display this prime festive season on Web commerce platforms despite fuel-stoked inflationary pressures, with executives reporting higher demand for premium goods that powered up to 40% growth in sales through the first three days in comparison with last year.

Executives at FMCG, apparel and electronics companies said demand had also spilled over to quick-commerce platforms, particularly for small electronic and household goods, apart from the usual FMCG. Sales gathered pace from Sunday midnight in the north and south, coinciding with the start of Navratri and the end of the inauspicious Shradh period.

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"The onset of Navratri acted as a catalyst in the already robust start to the sales," said Haier India chief executive Satish NS.

Sales climbed over 30% year-on-year in the first three days, driven by consumers upgrading to higher-value products, he said.

FMCG firm Parle Products' chief marketing officer Mayank Shah said packaged food sales rose 45-50%, led by mid-sized and large packs.

"Differentiated and healthier products are in demand, as are the transactions on quick-commerce platforms," he said.

Average bill values on quick commerce have risen 15-20% in urban areas, while smaller towns are seeing first-time buyers use these platforms, he said.

In electronics and smartphones, repeated price hikes have weighed on mass-market demand, but premium sales have helped offset the pressure. Television maker Super Plastronics, which sells Kodak, Thomson and Blaupunkt brands, reported 10% year-on-year growth in the first two days, accelerating to 20% from Sunday midnight.

"The base of last year is high as there was a GST drop in televisions last year. While 32-inch TVs have degrown this year, there is 20% plus growth in large screens of 55 and 65 inches," said chief executive Avneet Singh Marwah.

Small appliance maker Wonderchef chief executive Ravi Saxena said sales in the first three days were about 20% higher than last year, led by premium products. Mass-market buyers, however, appeared more cautious amid global uncertainty and stock market weakness, he said.

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Premium smartphones priced above ₹45,000 bucked a 12% decline in overall mobile phone volumes, according to sales tracker Counterpoint Research. "Premium phones are the only segment to grow, which will lead to value growth in overall smartphones," said its research director Tarun Pathak.

Smartphone prices have risen an estimated 35-40% this year, while laptops and televisions have become up to 25% costlier, as surging demand for memory chips from AI data centres pushes up the price of this critical component. Home appliances, FMCG, apparel and footwear have also faced price increases due to higher commodity, freight and rupee depreciation amid the West Asia crisis.