Thakur
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- 30 Aug 2013
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MUMBAI: Call it the Modi effect. It's just not
a flash in the pan, but a return of the elusive
"feel-good" factor that is giving several
consumer-facing industries a reason to smile
again. With a strong government at the
Centre, it's not just the stock markets, which
has witnessed buoyancy but strong
sentiments driven by higher consumer
confidence, has upped footfalls for most
categories including automobiles, real estate
and consumer durables post May 16.
Normally such sentiments translate into sales
with a lag of just over a month, a top
product marketer said.
Automobiles, which has been battling a
slowdown in sales for two years is now
witnessing signs of renewed interest , say
industry experts. Consumer durable
companies, which has seen a rough patch
over the last two years, are keeping fingers
crossed on what some honchos believe is a
double-digit growth in footfalls. The story is
no different for retail.
Interestingly, real estate, which has been
facing a marked slowdown and where unit
prices are much higher, is also seeing a
revival in bookings, at least for some large
players.
"People had the surplus money but the poor
market sentiments did not give them the
confidence to buy that new car or TV. Now
consumers could open up their purse strings
gradually," explained Harit Nagpal, CEO, Tata
Sky.
Homing in on real estate
"The sentiment has certainly improved and
the feel-good factor is much better. Bookings
have gone up in real estate and people's
interest in buying property has increased.
However, for the sentiment to translate into
actual results, it will take a couple of months.
We expect the new government to make
certain announcements which will lead to this
sentiment translating into positive results,"
said Adi Godrej, chairman, Godrej Group,
which has a presence in several sectors across
consumer durables, real estate and FMCG.
Retail therapy
"The mood is very, very upbeat across the
retail ecosystem," echoes Kishore Biyani,
founder & CEO, Future Group. According to
Biyani, these were early signs and the full
impact would be visible in the coming
months. In retail, where the temper had
slowed down with hardly any brand launches,
footfalls are going up.
Consumer durables stronger
Consumer durables, is another sector , which
can now smell the positivity. "We have seen a
double-digit increase in footfalls over the
past 3 to 4 weeks," said Arvind Uppal, CMD,
Whirlpool India. The consumer durables
industry typically does well when the
economy is in a growth phase. This is why
during the thriving years from 2004 to 2011,
firm economic growth, which led to a spike in
discretionary income, ensured that the
industry did well. The hope is that a strong
and steady government will be able to
announce single-minded reform pursuing
policies to de-bottleneck supply
apprehensions , lift infrastructure investment,
revive investment climate and thereby inject
growth in the economy.
a flash in the pan, but a return of the elusive
"feel-good" factor that is giving several
consumer-facing industries a reason to smile
again. With a strong government at the
Centre, it's not just the stock markets, which
has witnessed buoyancy but strong
sentiments driven by higher consumer
confidence, has upped footfalls for most
categories including automobiles, real estate
and consumer durables post May 16.
Normally such sentiments translate into sales
with a lag of just over a month, a top
product marketer said.
Automobiles, which has been battling a
slowdown in sales for two years is now
witnessing signs of renewed interest , say
industry experts. Consumer durable
companies, which has seen a rough patch
over the last two years, are keeping fingers
crossed on what some honchos believe is a
double-digit growth in footfalls. The story is
no different for retail.
Interestingly, real estate, which has been
facing a marked slowdown and where unit
prices are much higher, is also seeing a
revival in bookings, at least for some large
players.
"People had the surplus money but the poor
market sentiments did not give them the
confidence to buy that new car or TV. Now
consumers could open up their purse strings
gradually," explained Harit Nagpal, CEO, Tata
Sky.
Homing in on real estate
"The sentiment has certainly improved and
the feel-good factor is much better. Bookings
have gone up in real estate and people's
interest in buying property has increased.
However, for the sentiment to translate into
actual results, it will take a couple of months.
We expect the new government to make
certain announcements which will lead to this
sentiment translating into positive results,"
said Adi Godrej, chairman, Godrej Group,
which has a presence in several sectors across
consumer durables, real estate and FMCG.
Retail therapy
"The mood is very, very upbeat across the
retail ecosystem," echoes Kishore Biyani,
founder & CEO, Future Group. According to
Biyani, these were early signs and the full
impact would be visible in the coming
months. In retail, where the temper had
slowed down with hardly any brand launches,
footfalls are going up.
Consumer durables stronger
Consumer durables, is another sector , which
can now smell the positivity. "We have seen a
double-digit increase in footfalls over the
past 3 to 4 weeks," said Arvind Uppal, CMD,
Whirlpool India. The consumer durables
industry typically does well when the
economy is in a growth phase. This is why
during the thriving years from 2004 to 2011,
firm economic growth, which led to a spike in
discretionary income, ensured that the
industry did well. The hope is that a strong
and steady government will be able to
announce single-minded reform pursuing
policies to de-bottleneck supply
apprehensions , lift infrastructure investment,
revive investment climate and thereby inject
growth in the economy.
