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Economic slowdown doesn't break Valentine's day spirit
Despite the global economic slowdown, companies are ready to cash in on Valentine Day with an estimated business worth Rs 18,000 crore. The companies are expecting a record sales of popular gift items like flowers, jewellery, chocolates, toys, readymade garments, mobile phones, electronic gadgets, wrist watches etc, according to data released by the Industry body Assocham based on feedback collected from major producers or manufacturers.

In an analysis, Assocham covered the 500 corporates and online-shopping companies engaged in the business of gift products, jewellers, chocolates, toys, readymade garments, travel houses, airlines, mobile & telecom and electronic firms, has further revealed that  in view of V-Day’s, companies are coming up with attractive offers by way of targeting youths of higher paid executives working in IT, BPO-ITeS, retail, hospitality industry, big corporates and also students of  various colleges, schools and institutions etc.

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Assocham said the size of the market was this large since V-Day was not a single-day fete but was celebrated throughout the week. It starts with Rose Day (Feb 7), followed by Proposal Day, Chocolate Day, Teddy Day, Promise Day, Kiss Day, Hug Day and Valentine's Day (Feb 14). The spending during V-Day week will be 25 percent higher than last year, which was about Rs 15,000 crore in 2013.

The Assocham has also conducted a Survey covered 2500 young executives working and non-working in major metros various companies especially from the services sector, 250 educational institutions and 1500 students.

The survey has revealed that big salary youths especially from the MNCs, BPOs, IT and big corporates are planning to spend massively on V-gifts ranges from Rs.1,000 to Rs.50,000/- compared to educational institutions students ranges from Rs. 500 to Rs.10,000 this year on valentine day, said D S Rawat, Secretary General Assocham while releasing the paper.

Valentine sales account for nearly 25% of business share for a luxury brand. It is a heavy buying festival that has seen a significant jump over the past 5 years. While flowers, platinum or diamond jewellery and branded apparel remain the most preferred gift items, the demand for "something different" is growing in the metros, said Rawat.

"Fashion conscious teens, be it girls or boys, are becoming more concerned about their appearance and taking what they wear more seriously than ever before," said Rawat. The personal grooming becomes a very important task for people who plan on celebrating the V-Day. The survey also reveals that nearly 75% of people will spend between Rs.500 to Rs. 10,000 on themselves for the day.

Demand for special gift hamper for men that includes branded apparel, sterling silver cufflinks, an exquisite silk tie, a calfskin belt, wallet and a key chain, with a tag of over Rs 12,000 to Rs. 15,000 on the rise, adds the paper.

While the major showrooms will earn revenue from products like mobile phones, MP3 players, iPod, electronics items, readymade garments, the online shopping companies will source the money from flowers, greeting cards, chocolates, toys, jewellery etc. The major metros shoppers will spend beyond 68% in view of hub of service sectors in Gurgaon, Noida, Mumbai, Bangalore, Hyderabad, Chandigarh, where maximum youths working on various IT, BPOs, MNCs and big corporates and staying their also.

On the lines of gift items corporates, travel houses are also offering special V-Day packages in nearby destinations like Kerala, Goa, Nainital, Mount Abu, Dehradun, Musoourie, Kasuali, Shimla, Panchvati, etc. ranges from Rs. 5000 to Rs.50,000/- by way of targeting higher paid executives of MNCs, big corporates and services sector, reveals the paper.

Airlines are also not far behind in luring the youths by way of tie-up with reputed travel houses and hotels for the destinations like Bangalore, Hyderabad, Jaipur, Shimla, Mumbai, Goa, Kerala also international holiday packages include popular destinations such as Goa, Bangkok and Singapore, highlights the survey. Surveys also show that on average, men’s budgets are more than double than women plan on spending for V-Day.

Nearly 65% men and women will take their date out to dinner, 38% will buy chocolates, and 37% will give flowers.  Only 49% want to receive dinner, while 30% want chocolates and 20% want flowers. However, only 8% plan to give gift cards, but 15% want to receive cards. Only 7% plan to offer electronics, but 20% want to receive electronics.

Quick findings of the Assocham paper:

  • 25% jump is expected from sales on 14th February, 2013
  • Young professionals with higher disposable incomes have contributed to almost a 75% increase in the volumes of V-day gifts being bought
  • On an average, a student and young executive spend nearly Rs 500 to Rs 20,000 per head on V-Day
  • Married couple spend nearly Rs 20,000 to Rs 1,50,000 per head on V-Day
  • Those working and studying in cities like Gurgaon, Noida, Delhi, Mumbai, Bangalore, Ahemadabad, Hyderabad, Pune, Goa are likely to contribute over 75% sale for V-Day gifts against remaining 25% in tier II and tier III cities such as Dehradun, Shimla, Indore, Bhopal, Chandigarh, Mohali etc.
  • Branded items in certain categories will dominate: mobile phones, MP3 players, iPod, electronics items and readymade garments
  • Online shopping companies will also show a marked increase in sales through from flowers, greeting cards, chocolates, toys and diamond and artificial jewellery
  • Corporates and travel houses are offering special V-Day packages to popular destinations like Kerala, Goa, Nainital, Mount Abu, Dehradun, Musoourie, Kasauli, Shimla, Panchvati, etc where ‘wellness’ packages seem to be the most in demand with spa therapies and ayurvedic massages winning hands down
  • 65% of all men are likely to purchase gifts for their beloved, while 35% of all women will purchase gifts for their partners

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