Tamil Nadu - Chennai

Festival market waiting and customers watching city pulse

— Photo: M. VEDHAN

WIDE CHOICE: Customers have a look at television sets at a store in Chennai.

CHENNAI: The walk-ins have just started in the shops. But the mood of the market is upswing with traders and buyers itching to kick off the greatest shopping bonanza of the year.

Bhavesh Shah, director, Shah’s, expects a buoyant market: “People have been waiting to purchase for Deepavali. Every customer who has been watching is waiting for offers such as promotional schemes, warranties, scratch cards, lucky draws, exchange offers and prizes besides attractive EMI options.”

Not all consumers find the freebies attractive. “We take the bags or non-stick tavas because they are giving them to us,” said a customer.

Traders say though prices of all goods have gone up due to inflation, people will buy for the sake of buying a new item. “Good models are launched during this time and so they wait for the festival season,” said B.K.Shankar, associate vice-president of Viveks.

While inflation is bearing down heavily upon the middle class and lower middle class, there are consumers who are waiting to pick up bargains through monthly instalment schemes. Some consumers buy even Rs. 1 lakh worth goods through EMI, traders said.

V.Muthukrishnan, regional head (consumer durable finance), Bajaj Auto Finance, said more people were going for equated monthly instalment (EMI) options. “At least 20 per cent of the sale is done through EMI and customers benefit as there is zero per cent interest in this mode,” he said. The company has set a target of 3,000 loan covers for Chennai city this month alone.

All India retail company Next’s business manager (Chennai) V.Saravanan said there was good sale during Onam, and it would be good during Deepavali too. “There is not much investment in real estate or finance sector as consumers are thinking before they invest. We hope that some of that cash will flow into consumer durables this year.”

However, there are factors that could affect the trade.

Jayam & Co partner S.Jayaprakash felt Central government staff who had received pay arrears might boost the sales.

There has been a 50 per cent drop in sale of colour television sets. Customers are waiting to buy flat panel TVs as the price has been falling every month.

Traders expect to sell more refrigerators and washing machines this festival season.

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