FICCI sees a surge in consumer and business confidence

Good times are here again, says a Federation of Indian Chambers of Commerce and Industry (FICCI) survey, drawing on the buoyant festive market conditions that have triggered a surge in sales across sectors as diverse as automobiles and FMCG.

The survey says domestic sales during the present festive season from September till date have been so strong that retailers and manufacturing companies are revising their targets upwards.

Consumer durable and retailer sales seem to be particularly strong with increases of 15 to 20 per cent this year, the report says. The survey attributes the trend to a much improved consumer sentiment.

Leading automobile, consumer durable and FMCG brand dealers and retailers have reported a substantial rise in sales for their products across segments in September. The peak season for them starts with Onam in Kerala around September and continues with Durga puja, Diwali and Christmas till the New Year.

Auto companies have been the major gainers this year seeing their sales rise consistently since the middle of the year culminating in a rise of 25 per cent in the current season. The auto industry attributes the boom to the stimulus package announced by the government to shore up the economy.

With interest rates on auto loans down to 11 per cent from the 12 -15 per cent range of last year, auto sales have received a major boost with auto companies basking in the new confidence in the market. The lowering of the excise duty has also provided added incentive to customers who are now increasingly looking to pick up value deals in the mid-sized market. Manufacturers are now bullish on chalking up double-digit sales growth the survey reports.

FMCG majors, including Nestle, Coca-Cola, Cadbury, Pepsi and Dabur and leading sweetmeat makers such as Haldiram and Bikarnervala are expecting sales growth of around 20 per cent in their food products during the Diwali season. Dabur has already seen an increase of around 15-20 per cent in sales volume of fruit juices through festive season gift packs. Sweetmeat makers are similarly expecting a 20-25 per cent rise in sales volume. The big retailers are expecting an overall 30-35 per cent increase in sales this Diwali.