Sale from V-day gifts expected to cross Rs3,000 cr: Assocham

Sale from V-day gifts expected to cross Rs3,000 cr: Assocham
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First Published: Wed, Feb 13 2008. 10 36 AM IST
Updated: Thu, Feb 14 2008. 03 54 PM IST
New Delhi: Corporates are likely to earn from sale of Valentine items close to an estimated Rs3000 crore on a single day with record sales of V-Cards and popular gift articles like flowers, diamond jewellery, chocolates, toys, readymade garments, mobile phones, electronic gadgets and wrist watches according to data released by the Research Bureau of Assocham based on feedback collected from major producers/ manufacturers.
Estimated sales across the country of aforesaid articles in the year 2007 were in the range of Rs1400 crore.
700 young executives and over 1000 students in various parts of the country were interviewed through a questionnaire.
Key Factors
* 30% jump is expected from sales on 14February, 2008
* 80% buyers comprise bachelors/ youth/ students in professional institutions
* Young professionals with higher disposable incomes have contributed to almost a 50% increase in the volumes of V-day gifts being bought
* According to the findings, on an average, a student and young executive spend nearly Rs700 to Rs7000 per head on V-Day
* Corporates earnings through V-day would be maximum through sale of V-Cards, followed by flowers, chocolates, toys, diamond jewellery like necklaces, readymade garments, mobile, electronics items etc.
* Those working and studying in cities like Gurgaon, Noida, Delhi, Mumbai, Bangalore, Hyderabad, Pune, Goa are likely to contribute over 60% sale for V-Day gifts against remaining 40% 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, readymade garments
* Online shopping companies will also show a marked increase in sales through from flowers, greeting cards, chocolates, toys and diamond jewellery like necklaces.
* 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
* 62% of all men are likely to purchase gifts for their beloved, while 44% of all women will purchase gifts for their partners
* 62.0% consumers plan to purchase at least one greeting card
* 47.1% consumers plan to buy chocolates/ cakes/ tantalizingly packaged candy
* 42.1% plan to spend the evening out
* 10.9% consumers plan to give gift cards or gift certificates
* 52.3% of men and 14.9% of women plan to buy flowers this Valentine’s Day.
* 22.4% men and 7.3% women plan to purchase jewellery
* 5.3 % men and 12.6% women plan to purchase clothing as gifts
* Telecom giants are hoping to maximize returns that are expected to be in the range of Rs100-150 crore
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First Published: Wed, Feb 13 2008. 10 36 AM IST
More Topics: Valentine Day | Assocham | sales | gifts | flowers |