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10 charts that explain India's conflicting consumption story

For instance, audiences are flocking in droves to multiplex theaters to catch the latest movies, leading to healthy box office collections. However, on the other hand, sales of daily needs items like soaps have visibly slowed in recent quarters.

, ET Bureau|
Last Updated: Dec 09, 2019, 10.49 AM IST|Original: Dec 09, 2019, 06.30 AM IST
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Retail and fast food outlets have witnessed lower offtake.
Even though the economy is in the grip of a slowdown, some segments are chugging along at a fast clip.

ET Wealth studies the conflicting trends in India's consumption story.

1. Occupancy at hotels is rising steadily
India's hospitality industry is booming, with high-end resorts and hotels reporting healthy room occupancy.

Years Room occupancy rate (%)
2013-14 58.4
2014-15 59.8
2015-16 63.3
2016-17 64.8
2017-18 65.7
2018-19 66.7
Source: Hotelivate Research

2. More smartphones being shipped in
The leading smartphone brands in the country are clocking sales at a healthy clip, buoyed by rising online purchases.

BCCL - Non Copyright
14-2
Source: Source: IDC

3. More footfall, occupancy in multiplexes
Audiences are flocking in droves to multiplex theatres to catch the latest movies, leading to healthy box office collections.

BCCL - Non Copyright
14 3
Source: ICICI Direct

4. New car brands have arrived with a bang
MG Hector had to stop taking bookings after clocking 21,000 units after launch. Kia Seltos has surpassed sales of established players like Honda and Toyota.

Months Kia Motors (units sold) MG Hector (units sold)
August 6,236 2,018
September 7,754 2,608
October 12,850 3,536
November 14,005 3,239
Source: SIAM, Reports

5. Decorative paints are seeing healthy volumes
Paints manufacturers have been reporting strong volume growth in decorative paints despite a downturn in the realty industry.

Asian paints (Volume growth Y-O-Y (%)) Kansai nerolac (Volume growth Y-O-Y (%))
Q2 2018-19 11 9
Q3 2018-19 20 14
Q4 2018-19 10 9
Q1 2019-20 15 12
Q2 2019-20 14 13
Source: Axis Securities, ICICI Direct

6. Staples have seen muted demand
Sales of daily needs items such as soaps, detergents, shampoos etc have visibly slowed in recent quarters.

BCCL - Non Copyright
14-6
Source: ICICI Direct, HDFC Securities

7. Retail and fast food outlets have witnessed lower offtake
Quick service restaurants and apparel retail outlets have been affected by subdued discretionary consumption.

Jubilant Foodworks (Y-O-Y Same store sales growth (%)) Shopper's
Stop (Y-O-Y Same store sales growth (%))
Q2 2018-19 21 4
Q3 2018-19 15 9
Q4 2018-19 6 4
Q1 2019-20 4 5
Q2 2019-20 5 -2
Source: ICICI Direct, HDFC Securities

8. Takers few for housing units
The slowdown is due to fewer new project launches, low buyer confidence in under-construction projects and liquidity crunch in the market.

BCCL - Non Copyright
14-8
Source: PropEquity

9. Domestic automobile sales have decelerated
Increased cost of ownership in passenger vehicles and two wheelers due to new safety norms and higher insurance costs have led to pile up of inventory.

BCCL - Non Copyright
14-9
Source: News reports

10. Liquor sales are also on the rocks
Major liquor makers have seen volumes shrink amid sluggish demand and liquidity crunch in the liqour trade.
Pernod Ricard (Y-O-Y Volume growth (change in cases sold)) United Spirits (Diageo) (Y-O-Y Volume growth (change in cases sold))
Sep-18 34% 10.30%
Sep-19 3% 1%


Source: News reports

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