Everything hinges on festivals

Research firm, MNI Indicators, which is part of the Deutsche Börse Group recently concluded a survey on business sentiments in India. And it did not have too much to cheer about, at least not when it came to festive spending. Their survey has indicated that till beginning of October, people were still hesitant to spend but as we approach Diwali, now the moods have become a bit upbeat.

Festivals and marriages are the only time when people generously loosen their purse strings. All the pent up desires break barriers and there is usually a flood of demand for all and sundry – right from cosmetics, clothes, white goods, buying a new house, home décor , cars and more. So naturally, it is the time when companies also make the most of this ‘pent up demand’ and help people spend faster wit enticing discounts and sales.

Diwali, more than a festival of lights is now a festival of hope for India Inc. Companies are hoping that sales will go up and give its earnings the much needed color of black. In the bygone Navratri season itself, many apparel companies have reported a jump in sales, more so than what was seen last year. They are hoping that the same spirit will also be seen during Diwali. Manufacturers of washing machine, microwaves, refrigerators, TVs, are also pinning all their hopes on getting a boost in their sales during Diwali. Mobile phones too are expected to see a jump in sales. So much rides on this festival…..almost entire fortune of India Inc.