MUMBAI: With discretionary spending still subdued, retailers are pinning hopes on festivities and weddings in the second half of the year to give a leg up to demand. Prediction of a good monsoon - which often translates into availability of cash for people employed with the farming sector or adjacent industries - is also expected to help consumption . To be sure, some green shoots of consumption were visible towards the end of the March quarter, as indicated by companies, but a full recovery in demand is awaited.
The slowdown in spending is more pronounced in lower (includes lower middle class) income households, impacting the mass segment, while premium continues to fare well. The mass segment, weighed down by economic pressures , is displaying "cautious spending behaviours" and is recovering at a slower pace, Joy Alukkas, chairman and managing director of Joyalukkas Group told TOI. "The biggest requirement in the market is for the bottom of the pyramid to come in and spend," said Kumar Rajagopalan, CEO at Retailers Association of India (RAI).
Demand has remained flat in the current quarter and most retailers are worried because they had planned for a much bigger growth, he added. The industry, analysts said, will also be closely watching for consumption-favourable announcements in the upcoming Budget. Within middle-income households, those earning between Rs 5-8 lakh annually seem to be more strained financially, industry executives indicated.
"FY25...
things may improve bu.
