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ET Daily Rundown (ET Online)
Festive season brings good news and all credit goes to you
02:29 Min | October 23, 2019, 4:23 PM IST
The country’s economy is in a slowdown and the financial sector is caught in a liquidity freeze. But new reports show that purchasing is picking up. For more tune in to the podcast!
TranscriptDiwali’s almost here. And so is the good news. Sort of. Consumer credit has picked up during this festive season. And, if it continues, it could turn things around. Hello I am Sakshi Prashar and I am Ankita Sen this is ET’s Daily Rundown.
The country’s economy is in a slowdown and the financial sector is caught in a liquidity freeze. But new reports show that purchasing is picking up. All thanks to consumer credit. The festive season is the single biggest consumption period in India, accounting for about 30-40% of annual sales. And this year, it looks like more consumers are going for purchases through the financing route. Which basically means EMIs or credit cards. Amazon and Flipkart have reported more than 100% growth on consumer credit linked purchases this year alone. Well as long as they’re buying…. But this trend is hurting small-scale retailers. The online marketplaces offer a ton of discount and deals. Because of which brick-and-mortar retail stores are never the first choice for consumers. Which is why these stores are now pressing brands to extend the same benefits to them. This news comes right after the commerce ministry said it would be probing Amazon and Flipkart for ‘predatory pricing’ and other unfair trade practices.
Let's hope it leads to some solution because brick and mortar stores are badly suffering. Many retailers are even saying that its going to be a Black Diwali this year as sales are at their worst ever. Speaking of slump, it seems liquor sales has slowed down drastically this year. When you say drastically.. To give you an example, the market for locally-made versions of foreign liquor had grown at 12.9% in September last year. But this year it's a piddling 1.4%. Well isn’t that because of the elections? It is one of the reasons, yes. But since consumption has taken a hit, so have the liquor cabinets. Which is because of the taxes. It is. But there's a lot more that's gone into this situation right now. But Suzuki President Toshihiro Suzuki said consumption in India is set to recover shortly. The company admitted that while it may be a challenge for the company, efforts are being made to strengthen their position in India. The company also thinks that because of inadequate infrastructure, it will be tough for electric vehicles to take off in India.
Script: Poorabi Gaekwad
Anchors: Ankita Sen, Sakshi Prashar
Producer Sakshi Prashar