Consumer firms stare at a damp festive season

This festive season may turn out to be a challenging canada goose uk shop period for consumer companies. buy canada goose jacket cheap Rising input costs, led by volatility in crude and currency, increased taxation, imminent price hikes and cautious buyer cheap Canada Goose sentiment canada goose black friday sale are at the heart of the grim outlook.

The central bank Canada Goose Coats On Sale has also hiked interest rates twice this year, and could raise the repo rate again at its bimonthly monetary policy meeting next Canada Goose Jackets week.

canada goose outlet vancouver “I will have to study the order in detail, but price hikes during canada goose factory sale the festival season are likely, which is not good news. No manufacturer will like increasing prices during this period canada goose clearance because Canada Goose Online buyer sentiment will take a hit.” canada goose outlet vancouver

Almost 40 per cent of a durable company’s sales are achieved canada goose coats on sale during the festival season. For Canada Goose Outlet carmakers, 25 30 per cent of sales happen between August and October.

For fast moving consumer goods (FMCG) companies, on the other hand, the festival period is marked by a sharp increase in launches, promotions and general brand building.

canada goose outlet washington dc Volatility due to crude and currency is expected to force firms to rein in expenditure, as they strive to protect margins. canada goose outlet washington dc

input cost pressures increase, price hikes become imminent. But this will be done judiciously, Sunil Duggal, chief executive officer, Dabur canada goose clearance sale India, said.

http://www.canadagoosecanadaoutlet.com canada goose outlet store calgary Suresh Narayanan, chairman and managing director, Nestl India, said his company would look at selective Canada Goose sale price hikes. canada goose outlet store calgary

canada goose outlet niagara falls Analysts say non banking finance companies could see some cost pressures (owing to the crisis triggered by issues around IL resulting in higher interest rates for borrowers. canada goose outlet niagara falls

canada goose outlet online uk Since June, the rupee has depreciated over 6 per cent to the US dollar amid domestic and global trade war concerns. canada goose outlet online uk

canada goose kensington parka uk Durable and auto firms are impacted hard by currency volatility, as raw materials (such as metals and plastic) and component prices are benchmarked against the dollar. canada goose kensington parka uk

Most durable firms, including LG, Haier and Godrej, have already increased prices by 3 5 per cent this month.

Panasonic India is also expected canada goose uk black friday to increase product prices by 2 3 per cent.

canada goose outlet us Maruti Suzuki, the country’s largest carmaker, increased prices across its models by up to Rs 6,100 in August and Toyota Kirloskar hiked prices of products by 2 3 per cent this month. canada goose outlet us

canada goose outlet The basic Customs duty hike will force firms to go for another round of price hikes in October.

canada goose outlet montreal The hardest hit are air conditioner makers, grappling with a peak goods and services tax rate of 28 per cent. canada goose outlet montreal

They were canada goose expecting it would be reduced in the last GST rate rationalisation announced in July. But their wait is getting longer and harder.

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“The Customs duty hike will force us to evaluate our inventory position sooner than later, pushing us to consider another round (of price hikes) in December January, B Thiagarajan, joint managing director, Blue Star, said.

Since September last year, durable majors have taken at least three rounds of price hikes due to back to back increase in duties.

Companies said a new round of hikes will mean an effective increase of 15 20 per cent in product prices since last September, which hardly bodes well from the point of view of sales.

canada goose outlet edmonton Car firms, in the interim, are battling high inventory levels at dealerships, as consumers stay away due to high fuel and borrowing costs. canada goose outlet edmonton

According to analysts, on an average dealers today are carrying inventory of a month and a half versus a month earlier, implying sales are slowing down.