Festive times are associated with sales and discounts. With e-commerce, one now gets big-ticket discounts on many products. This year is special. It is dubbed as ‘Bachat Utsav’ by Prime Minister Narendra Modi, and not just as ‘Buying Utsav,’ because of the huge GST cuts that became applicable from the first day of Navratri. As in the past, few products generated as much buzz as the iPhone. Each year, people time their upgrades with this season and hope to grab the latest model. iPhone launches, too, are timed for the occasion.
Flipkart used its ‘Big Billion Days’ sale to offer iPhone 16 and iPhone 16 Pro. The base iPhone 16 (128 GB) was listed at `51,999 after bank and exchange discounts. iPhone 16 Pro was offered at `69,999, again with stacked offers. Compare these with the launch price of `79,900 for iPhone 16, or a difference of nearly `28,000, and it is clear why buyers wait for the festive window.
Amazon gave this a go this year, and did not put its weight behind iPhone deals, which was disappointing to consumers. Instead, the e-commerce giant pushed an Android flagship. The headliner was Samsung’s Galaxy S24 Ultra, which was under `71,999 for members. Platforms do segment their strategies.
Despite these sales, the broader smartphone market may remain constrained. Market agencies project a modest growth in the phone market, but expect the premium segment (above Rs 30,000) to grow by 18 per cent year-on-year this festive season. Apple and iPhones are likely to ride this wave. Media reports indicate that the sales of the just-launched iPhone 17 were stronger than iPhone 16. The ultra-premium category (`1,00,000 and above) may witness a triple-digit growth, despite zero discounts on the new iPhones.
Large appliances, especially air conditioners and TVs, are being reshaped by this desire for premium trend. But in this, it is being accelerated not just by aspiration but by policy. The GST cuts, which lowered slabs on both ACs and TVs, trimmed prices and gave fresh momentum. Dealers contend that the impact is clearly visible.
“Trends of primary regular sales are encouraging. Till 5 pm in the evening (on the first day of Navratri), our dealers reported almost double the sales compared to any other Monday before it,” Haier India President NS Satish told a news agency. Blue Star MD B Thiagarajan added, “Going by the enquiries, I think the mood is upbeat. Rough estimate is that the growth compared with last year’s September will be around 20 per cent.”
In the case of ACs, this year has been a difficult one. A mild summer and uncertainty over GST kept buyers on the sidelines, which led to sluggish sales and high inventory. Manufacturers offered discounts ahead of the festive season. Thiagarajan told a news agency that the company expected 10-15 per cent growth in room ACs but has revised it to 20 per cent on the back of the tax cuts. But he agreed that sales in the second quarter (July-September) before the season may have fallen by 50 per cent due to the postponement of purchases.
On the first day of Navratri, the sales of ACs and TVs were almost double those on normal days. LG, Haier and Godrej have supported the tax cuts and feel they will revive the market. Blue Star is targeting sales of 5,00,000 smart ACs in 2025, which may contribute nearly 30 per cent of its annual sales.
As ACs try to claw back lost ground, TVs embody how the bigger-is-better aspiration is driving consumption. Earlier, the 32-inch sets dominated the market. Now, there is a strong demand for 45-inch and 55-inch screens, which is visible in Tier 2 and Tier 3 cities too. Financing schemes and festive discounts make these upgrades possible. Samsung’s TV business crossed `10,000 crore in India in 2024, and the company believes that future growth will be anchored in the premium 55-inch-and-above category.
Hisense is an aggressive player in this space. After the launch of its 80-inch TV, it said that sales crossed 2,500 units in two months, which made it one of the top sellers in market rankings. The appetite for extra-large screens is due to lower prices, of between a couple of thousand to Rs 50,000, on large TV sets, thanks to the recent GST slashes, which make the premium models more affordable.
The larger picture is of divergence. Mass segments remain soft, but the premium end is expanding. The question is whether this is sustainable. E-commerce gross merchandise value this festive season is projected to cross `1.2 lakh crore, a 27 per cent year-on-year jump. This looks impressive, but the growth at the bottom segments will remain muted. The sale of premium brands has risks.
One of them is that the demand is front-loaded. Consumers postponed purchases and waited for the tax cuts and festival deals. This created an ongoing sales bulge (September-October). If supply chain or inventory missteps occur, or discounts do not meet expectations, demand can quickly dry up. There is a margin question. Aggressive discounting on iPhones may drive volumes, but reports of order cancellations during Flipkart’s sale have triggered backlash. The phrase “Big Billion Scam” is trending on social media.
For ACs, the gamble is sharper. Cooling is a seasonal category and heavily dependent on weather and timing. If sales spike too quickly and fall, inventory management becomes a nightmare. To counter this, most brands have focused on the hot-and-cool ranges. Blue Star launched almost double the number of models in this category.
For TVs, the long-term bet is whether the upgrade cycle to larger screens becomes entrenched across India, or remains confined to premium buyers in top-notch cities. Mini LED is the new technology that is picking up, but people are opting for QLED and OLED TVs. Buyers may decide between screen sizes and new technology.
Despite the GST cuts and ‘Bachat Utsav,’ what this festive season demonstrates is that the Indian consumers are becoming increasingly aspirational, which is a given. Yet, they remain price-sensitive and deal-driven. Platforms, brands and dealers are converging on the premium segments. However, the crucial question lingers on: Will the current surge sustain once the lights are packed away, candles are blown out, and firecrackers die down? If it does, India’s consumer tech pyramid may shift upwards and become bigger and bulging at the top. If not, this season may be remembered as a bubble that was inflated by tax cuts, deals, discounts and dreams.