This Diwali Season, Tableware Industry Sales To Rise By 50%

This festive season will bring cheer for the Indian retail industry—especially the tableware industry, which is expecting sales to rise by 50% during the Diwali season. Industry experts have predicted that the festival season generates maximum sales for tableware players in the entire year.

“Over 60% of the revenue is generated during Diwali since it is a festival time and people like to splurge. With a buoyant consumer sentiment in the market this year, we are expecting substantial increase in the sales,” said industry expert Susant Das.

He elucidates further that this year Diwali sales look brighter as the overall economy has improved, which is boosting manufacturers’ and retailers’ margins.

“The manufacturers are offering attractive schemes as well as coming up with new marketing strategies to woo consumers in this festive season,” added Das.

Industry experts suggested that retailers have registered numbers down South because of Onam, retailers in North and East will witness a substantial increase in the sales as the festival season nears. While in the Northern region, brands expect the sales to surge because of Diwali, in the East, people will buy because of Durga Puja. Analysts are expecting the sales to pick up by the first week of October.

The Year Gone By

Last year, the tableware industry had witnessed a dip of 25% in the sales around the festive season. However, Diwali sales in the retail market last year seemed gloomy as the consumer sentiments had been marred by high inflation that had brought in a change in their purchase patterns.

“The rising prices did not leave much of a scope for people to splurge on tableware products like crockery, especially ceramic and glassware which has witnessed the sales dwindling considerably”, said Das.

Domestic manufacturers in the industry too had scaled down their expectations in 2013. “The cost on imports had substantially gone up due to the depreciating rupee value which had put pressures on local retailers to demand for the local goods,” said a top official of tableware manufacturer who requested anonymity.

Corporate customers, who have been a major customer for tableware players, too had shifted their choice of gifts this festive season. “Companies have been important buyers of dinnerware or kitchenware goods. However, last year, they had preferred to give cash or gadgets as Diwali gifts to their trade partners and employees,” noted Amitabh Airi, another industry expert.

The Forecast

According to market estimates, the industry size is pegged at around Rs 2,000 crores, which includes glassware, ceramics, and kitchenware. The luxury tableware market is anywhere close to 15% of the total volume of this industry. “The ceramics tableware is slowly picking up as people are getting more aware about the health hazards from the different other forms of tableware be it melamine, plastics, steel, nonstick or any other material,” Das added.

The ceramic segment tableware industry is primarily dominated by foreign brands such as Shinepukhur Ceramics from Bangladesh, Noritake from Japan, and Danktuwa from Sri Lanka; among the domestic players Goodearth, Artinox and the recently launched Azure rule the roost. The glassware category of products are offered by both Germany based Reidel and Nachmann. On the other hand, the mass segment is dominated by Indian players like Bharat Potteries, Claycraft Ceramics, Sonaki Ceramics and other Chinese products. Surprisingly, Tata Ceramics has a negligible market share though they have been producing good quality tableware products.

“This time around, players in the high-end segment are expecting high volumes along with higher margins in the festive season. While in the mass segment, the margins may not be higher when compared to the considerable surge in the volumes,” said a wholesale trader.

Representational Image