KOLKATA: Consumer electronics sales started on a lukewarm note on the first day of GST 2.0 with retailers and brands saying they handled increased enquiries for air conditioners and large-screen televisions, but it was mostly business as usual without any major surge in sales.
Companies are however optimistic that sales would start rebounding from later this week after consumers compare product prices on e-commerce marketplaces Amazon and Flipkart which will start their annual festive sales from Tuesday.
Notably, primary sales-from companies to trade-surged by a record 20-30% on Monday compared to an usual day before the festive season last year, with top executives saying they expect to make up for the sales lost in the past month during the GST transition period, based on the orders received so far. "It was business as usual on Monday and no major rush as consumers know low prices are here to stay. So, Monday being a working day, people will come at their own convenience," said Nilesh Gupta, director at Vijay Sales, one of the largest electronics retail chains with presence in Delhi-NCR, Mumbai, and Hyderabad.
Gupta said some brands, who had started pre-bookings, got a good response though it is unlikely to compensate for the 50% on-year drop in sales this month.
Raj Kumar Pai, managing director at South India-focused retail chain Pai International Electronics, also confirmed subdued footfalls and sales on Monday.
The Modi government lowered the goods and services tax (GST) rate on large-screen TVs above 32-inches, dishwashers, air conditioners, and monitors to 18% from 28%. While the tax on products like refrigerators, washing machines, and smartphones remained unchanged at 18%, sales for these too had dipped in the last month as consumers expected that the price cut would be across categories.
East India-focused electronics retail chain Great Eastern Retail director Pulkit Baid said enquiries have started with some conversions in West Bengal and Odisha due to the Durga Puja festival. "Sales spikes are always deadline oriented. This GST reduction does not have an end date so customers will take their time to step out," he said.
AC manufacturer Blue Star managing director B Thiagarajan said some consumers are probably waiting to see the deals in online marketplaces before deciding on their purchases. "However, primary sales are up by 20% from Monday. Whatever sales we have lost in the last one month will be made up," he said.
Companies are however optimistic that sales would start rebounding from later this week after consumers compare product prices on e-commerce marketplaces Amazon and Flipkart which will start their annual festive sales from Tuesday.
Notably, primary sales-from companies to trade-surged by a record 20-30% on Monday compared to an usual day before the festive season last year, with top executives saying they expect to make up for the sales lost in the past month during the GST transition period, based on the orders received so far. "It was business as usual on Monday and no major rush as consumers know low prices are here to stay. So, Monday being a working day, people will come at their own convenience," said Nilesh Gupta, director at Vijay Sales, one of the largest electronics retail chains with presence in Delhi-NCR, Mumbai, and Hyderabad.
Gupta said some brands, who had started pre-bookings, got a good response though it is unlikely to compensate for the 50% on-year drop in sales this month.
Raj Kumar Pai, managing director at South India-focused retail chain Pai International Electronics, also confirmed subdued footfalls and sales on Monday.
The Modi government lowered the goods and services tax (GST) rate on large-screen TVs above 32-inches, dishwashers, air conditioners, and monitors to 18% from 28%. While the tax on products like refrigerators, washing machines, and smartphones remained unchanged at 18%, sales for these too had dipped in the last month as consumers expected that the price cut would be across categories.
East India-focused electronics retail chain Great Eastern Retail director Pulkit Baid said enquiries have started with some conversions in West Bengal and Odisha due to the Durga Puja festival. "Sales spikes are always deadline oriented. This GST reduction does not have an end date so customers will take their time to step out," he said.
AC manufacturer Blue Star managing director B Thiagarajan said some consumers are probably waiting to see the deals in online marketplaces before deciding on their purchases. "However, primary sales are up by 20% from Monday. Whatever sales we have lost in the last one month will be made up," he said.
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