Kochi – GST implementation has turned out to be a major factor that can dampen the Onam sale of Kerala. The Onam sale extends till Diwali and is considered to be a significant time of the festive season. This impact has not been due to the tax rate as there is little change in the rates from the pre GST era. However, even though the tax rate has seen little change, the consumers are still not willing to spend a lot on the home appliances.
The managing director of Bismal Group, which is one of the largest home appliance sellers, confirms that the sale has not picked up like other years. Kerala is yet to see the usual Onam rush. People might have feared tax rate increase and bought their essential goods before July.
The consumer market of Kerala has been ranged between ₹ 2,000 and 3,000 crores. Among this amount around 60% occurs in Onam festival which extends two long months. The big brands make new launches during this time for this reason. The brands offer discounts and freebies to increase sale.
Jerry Mathew, the partner of White Mart chain, discloses that the sale of fridge and AC are not high. He added that the cool weather might have caused the sale to drop. However, the sale of television and washing machine can be considered ok.
Gold jewelry industry of Kerala has also witnessed slow down during Onam sale. This being the wedding season, the Onam festival usually witnesses bulk gold jewelry sale. However, that rush has been missing this year. However, though the bulk sale rush is absent, individuals are buying gold during the Onam season, said a close source.
The price hike has not impacted gold sale much. The textile market is doing better than other industries. People are buying new clothes like they do in this time each year. The sale in this industry has not dropped.
The trend of Onam festival sale has changed the traders. This change can be attributed to the online retail stores.