Companies making durable consumer products and are hoping to get 40% of the total sales in this festival season by offering free gifts and discounts. They hope that by attracting consumers in such a way they can recover from the difficulties faced by the implementation of Goods and Services Tax (GST).
Manufacturers like Sony, LG, Panasonic, and Haier are hoping for a reduction in the stock after the GST in demand due to reduced stores who are the trading partners. They hope that in June that the demand will be revived again.
These companies are also spending a lot of marketing campaigns. Sony alone is spending Rs.250 crores for this, while Panasonic is going to spend Rs.1.4 crores on branding and marketing. Haier is also spending 70% more this year as compared to last year.
Sony India Managing Director Kenichiro Hebey said, "During the festive season this year, from August to November we have planned to increase sales by 25% compared to the same period last year."
Explaining the possibility of further growing before the festive season, he said, "We have planned to invest 250 crores in marketing activities."
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