Slowdown dampens festive spirit; small biz feel pinch
Updated: Oct 03, 2013 05:45:59pm
New Delhi, Oct 3 (KNN) General slowdown, combined with rising costs are bound to affect festival sales this season beginning with Durga Puja, adversely affecting micro, small and medium manufacturers and traders.
Sweets, dry fruit, ghee, flour, candles, clothing, lighting, fireworks are mostly produced by small units and reports indicate that sales during the current season would not match the volumes of last year’s.
According to a recent survey by ASSOCHAM over 72 per cent respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 per cent and on average spend nearly 25 per cent of their monthly salary on Diwali for shopping, sweets, gifting, apparel etc.
Significantly, Delhi-NCR is on top of the chart for curtailing festive budget owing to reduced purchasing power.
On her attempt to control spending, housewife Ahana Bhushan said, “During Diwali we buy new clothes and renovate our house. I cannot do much this time. How can I, when prices of simple items like clay lamps and candles have gone up? I would probably have to go for the cheap Chinese alternatives this time,” she said.
For businessman Akshay Mithra too, the season brings challenges. “Diwali is a time of giving and so we distribute sweets and gifts. We normally order them in bulk in advance. But with prices skyrocketing this year, I will have to limit the number of beneficiaries,” he remarked.
The ASSOCHAM survey was conducted in a period of two months beginning August to September 2013 in major cities like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun etc. A little over 200 persons were selected from each city on an average.
Delhi ranks first in curtailing their expenses during the festive seasons followed by Mumbai (2nd), Ahmedabad (3rd), Kolkata (4th) and Chennai (5th), the report said.
While the survey reveals the high income group remains unaffected from rupee fall and double digit food inflation, a large number of lower and middle income groups indicate that they are finding ways to cut back spending now or indicating they will do so in the future.
“Petrol prices have gone up as also the price of essential commodities like vegetables. I have to think twice before I buy anything now,” said Simi Shankar, referring to her high grocery bills, especially the price of onions.
In addition, with the high costs of transportation and the bleak employment scenario, most families are finding it difficult to make ends meet. It is certainly compelling many to look out for sales and bargains. (KNN/ES)
Sweets, dry fruit, ghee, flour, candles, clothing, lighting, fireworks are mostly produced by small units and reports indicate that sales during the current season would not match the volumes of last year’s.
According to a recent survey by ASSOCHAM over 72 per cent respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 per cent and on average spend nearly 25 per cent of their monthly salary on Diwali for shopping, sweets, gifting, apparel etc.
Significantly, Delhi-NCR is on top of the chart for curtailing festive budget owing to reduced purchasing power.
On her attempt to control spending, housewife Ahana Bhushan said, “During Diwali we buy new clothes and renovate our house. I cannot do much this time. How can I, when prices of simple items like clay lamps and candles have gone up? I would probably have to go for the cheap Chinese alternatives this time,” she said.
For businessman Akshay Mithra too, the season brings challenges. “Diwali is a time of giving and so we distribute sweets and gifts. We normally order them in bulk in advance. But with prices skyrocketing this year, I will have to limit the number of beneficiaries,” he remarked.
The ASSOCHAM survey was conducted in a period of two months beginning August to September 2013 in major cities like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun etc. A little over 200 persons were selected from each city on an average.
Delhi ranks first in curtailing their expenses during the festive seasons followed by Mumbai (2nd), Ahmedabad (3rd), Kolkata (4th) and Chennai (5th), the report said.
While the survey reveals the high income group remains unaffected from rupee fall and double digit food inflation, a large number of lower and middle income groups indicate that they are finding ways to cut back spending now or indicating they will do so in the future.
“Petrol prices have gone up as also the price of essential commodities like vegetables. I have to think twice before I buy anything now,” said Simi Shankar, referring to her high grocery bills, especially the price of onions.
In addition, with the high costs of transportation and the bleak employment scenario, most families are finding it difficult to make ends meet. It is certainly compelling many to look out for sales and bargains. (KNN/ES)
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