Consumer durables sales this Diwali saw a sharp decline across all product categories. The sales were almost half of what they were last year and have retailers stuck with unsold inventory, thinking of strategies to clear the piled up stocks.
The LCDs, ACs and refrigerators saw the biggest fall with sales dropping almost 50-80 per cent.
Pradeep Khanna a consumer durables dealer, said, "Compared to last Diwali, this year sales are down by 30-40 per cent. It was not a good Diwali."
Although the dealers had stocked inventories almost 50 per cent lower than last year, the dull buying this Diwali, led to stocks piling up.
Charanjeet Singh an electronics dealer, said, "We were anticipating 20-25 per cent slowdown, but now after Diwali is over, we have done 50 per cent of the business that we were expecting. The stocks are left out and the company's pressure is on our head."
Dealers and retailers are working out strategies to clear the unsold inventory. Some say they have to offer forced discounts to bring up sales while others feel margins are on tight pressure for any special offers. But they are all anticipating a big price hike of 10-15 per cent from the manufacturers, pretty soon, to get some relief.
With existing inventories stuck at shops, the dealers are worried about meeting the rotation on time before new models hit the market in three-four months. However, all hopes are now tied on the December-February marriage season to make up the sales.