Longer EMI Schemes Boost Premium Product Sales in Metropolitan Areas
Mumbai, October 2023 – The introduction of longer EMI (Equated Monthly Instalment) schemes on high-end products in metropolitan centres has simplified consumer access to premium goods, consequently driving an uptick in product upgrades.
Nilesh Gupta, director of Vijay Sales, projected a significant rise in demand for premium products compared to last year. "The demand for premium products will increase more than last year," Gupta stated, emphasising the noticeable shift towards quality over cost.
Echoing this sentiment, Singh, another industry spokesperson, confirmed the trend, reiterating the expectation of increased consumer interest in high-end items.
Haier Appliances India has also reported substantial growth, with sales up 35% year-on-year during the festive season. N S Satish, president of Haier Appliances India, noted, "LED TV and washing machine sales have surpassed expectations since the onset of the season with Onam, and we are anticipating robust Diwali sales as consumers show a strong preference for premium products."
This consumer behaviour is not limited to major cities; tier-2 and tier-3 cities are also contributing to the surge in premium product demand. In the footwear segment, Bata India has observed notably increased interest in athleisure and fashion footwear. Badri Beriwal, Bata India’s chief strategy and business development officer, remarked, "Consumer spending, though experiencing some softness over recent quarters, is now starting to reflect positive macroeconomic indicators."
Such trends suggest a broader shift in consumer purchasing behaviour, favouring higher-quality, premium products facilitated by more accessible financing options in the form of extended EMIs. This shift not only supports sales growth for companies like Vijay Sales and Haier Appliances but also hints at a broader economic recovery influencing spending habits across various consumer sectors.
As the festive season progresses, businesses are optimistic about continued robust sales, spurred by consumer readiness to invest in premium products.
Source: Noah Wire Services