EDITALK

Diwali 2024 Lighting Samay of Bharat!

As we rightly pointed out in our October Issue Editorial, the Festival of Lights is usually known to be the harbinger of Good Times to Follow for all of us! And as has been customary, every passing year, consumer spending generally peaks during Diwali, the pan-India Festival of Lights. This year, too, is therefore no exception. Demand for premium products remained robust. There has been a spike in purchases across sectors - from FMCG (fast moving consumer goods) to automotive and real estate - underscoring an ongoing shift towards high-end consumption. From luxury vehicles to designer diamonds, with luxury watches and electronic goods thrown in for a good measure, most companies have reported a festive season sales boost, driven by an increasing consumer appetite for upscale purchases. Despite high headline inflation- primarily due to price rises in essential commodities such as food, groceries, and durable goods - consumers have nevertheless remained resilient in their shopping plans, with luxury brands reporting steady sales growth as well as most brands indicating a consumer shift towards more advanced offerings. Therefore, the fact is, that across different sectors, this year's festive season has indeed proven to be a critical driver of demand, with consumers gravitating toward premium purchases and durable investments, showing resilience and a strong appetite for aspirational buying, despite  inflationary pressures. So, it's truly speaking the Samay of Bharat this year and in the months that lie ahead. Now, if we look again particularly at our own horological sector, from what one has seen, after some-sort-of drag witnessed during the past some years, this year both the watch & clock retailers have reported good sales. In fact, not only has there been a greater customer- footfall observed at physical stores across the country, but the watch and clock consumers, seem to have moved more towards high-value premium and luxury products also. Consumers were looking to do something different too for Diwali gifting this year and D2C brands were positioning themselves to capture the change in preferences and behaviours. Gift-givers gravitated towards more premium and meaningful gift selections, while recipients' expectations also increased, especially in terms of sustainability and experience. Infact, whether they be Luxury, Premium, Fashion, Medium or Mass market watch or clock brands, all categories regardless have done well. For instance, Titan Watches and Wearables business recorded a Total Income of ₹1,301 crores in Q2FY 25, up 19% over Q2FY24. The domestic business also grew 19% in the same period. Consumer preferences for premium brands was clearly visible with Helios channel (international brand sales) clocking a healthy retail growth of 43% over Q2FY24. The 2024 Diwali festive season sale thus concluded on a high note, with order volumes rising for most watch & clock brands and companies. And as a direct result of this boost in sales during Diwali, with product inventories having moved out well off the retail shelves, not only the watch & clock brands could make further manufacturing plans for new products to be introduced in the future months, but even the related ancillary manufacturers of components and spares including service providers, stand on a healthy wicket, with new and fresh orders that they will also likely receive as a consequence of a good Diwali. Moreover, as per reports, this year the Tier 3 cities and beyond outperformed Tier 2 towns in market share, capturing a larger percentage of order volumes as compared with Tier two’s performance. However, Tier One cities and metropolitan areas continued to maintain the largest market share this year. Also, retailers of both watches and clocks got a substantial boost this Diwali, as consumers returned in commendable numbers to physical stores, in a marked preference over e-commerce, for which, both the retailers and the brands did their respective bits to enhance the Look and Touch feel. Above all, the most rejuvenating observation we have made this year is about the general optimism that the retail trade as well as brands hold for the Diwali festival just celebrated, as well as their outlook towards the future months with Christmas and the New Year 2025 on the anvil, which too will begin with the Samaya Bharati 2025, which is being held coming January in New Delhi. The Diwali just gone by, to be followed soon by these Happy Occasions, thus augurs well for the Horological Industry and Trade of India. As loaded as the forthcoming Samaya Bharati is expected to be with many companies of repute participating in it both National and International, it will also hold out the right platform for brands, the watch & clock retail trade as well as direct consumers to network with each other, grab new opportunities for further growth as well as explore in vivid detail, how the horological scenario has evolved to where it stands in India today. The response too, both from the participants and the retail trade, is good, as while it's almost a fully sold-out house, they are also equally excited about the forthcoming event. While, the Fair will indeed create an awareness among B2B customers, many have also demonstrated an inclination to visit and attend Samaya Bharati 2025. Additionally, this time around during the forthcoming and 22nd Edition of the Fair, we are trying very hard to very hopefully and if all goes off well, put up an exclusive zone for off-shore tie-ups which will spell-out opportunities being extended by the Government of a strategically important country, for interested Indian brands to spread their wings outside India and set-up facilities to manufacture, warehouse as well as distribute their products from a Tax-Free Zone and subsequently export those to various countries across the world including India at healthy and internationally competitive prices. Other than this, there will be stalls offering media solutions for those companies that are interested in promoting their offerings and services as per the current advertising trends prevalent these days, booths for offering gifting solutions as well as a seminar exclusively organised for interested MBOs which will have some of the most prominent luminaries from our industry participate in it and debate about the current and future horological scenario, as well as the steps required to be taken to take our industry forward into a grand future. Today, it is a well-known fact that Delhi has a very large gifting market besides being an equally large and potential market for watches and clocks. On the other hand, the Northern India belt that comprises the neighbouring states of Rajasthan, Uttar Pradesh, Haryana, Punjab etc are also loaded with a considerable potential for such products and services. The Samaya Bharati 2025 is hence the ideal platform, to help trigger this potential to a new high and resultantly help both the companies and the retail channels to expand not just their product canvas alone but also the respective bonds that they share with existing contacts as well as build new business contacts and relationships for a sustainable and bright future. Hence, as off now, from all the zeal, general satisfaction and happiness that we have heard and witnessed so far during and post Diwali this year, the going looks to be good for all in the months to follow. It's thus time for all of us to work together, elevate our spirits and move towards a healthy future with new ideas, new creations, new innovations and consequently continue to evolve even further!!

Hemal M. Kharod