- 2 days ago
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00:00And we're tracking the top GST impact today.
00:03Well, it's the Great India Savings Festival and we have our correspondent standing by on the ground
00:08to get us a mood check of consumers across malls, auto dealerships and electronics stores.
00:13Now, with electronics already seeing huge demand during the festive season,
00:17will extra money in the hands of consumer prove to be a major booster shot for the segment?
00:23All my colleagues are here, Anjali Palod, Anurag Shah, Anurag Joshi and Nivedna Prabhu
00:28as well as Sumita Kharira.
00:30Anjali, let's start with you.
00:31You're at one of the outlets of Reliance Smart Bazaar in Mumbai.
00:35So, what is the mood looking like?
00:36I have a lot of customers rushed in already.
00:44Right, so it's an early morning.
00:46So, we haven't seen as many customers right now.
00:48But the effects of the GST changes are surely being seen in action
00:53in the form of discounts across the store.
00:56Now, from soaps to detergent, butter, milk, all the categories which have seen a GST cut,
01:01we can see those products here stocked up and already at discounts.
01:06In fact, we are seeing some posters here which say GST down, savings up,
01:10which means that the store is also gearing up for people to come in and shop more
01:15now that the GST rates are down.
01:17The large packs have been stocked up and discounts have been clearly displayed.
01:21So, while it may take some time for the MRP or the packaging to actually reflect the changes
01:26in the GST rates and the lower prices, the supermarkets have gone ahead and decided to give
01:32discounts so that the benefit of the lower GST can be passed on to the consumers.
01:38We can see it across categories here in the store.
01:40In fact, on the bill as well, we just saw a while ago one of the bills wherein it clearly mentions
01:45how much money you've saved using GST benefits.
01:48We saw milk being moved from the 5% slab to now 0% on that bill as well.
01:53So, across categories we can see this and throughout the day,
01:57the supermarket and all Kirana stores are also expecting people to come in
02:01and make the most out of the lower GST rates.
02:04All right, with the footfalls already on the rise, major malls are pricing in a bumper festive season
02:12already from durables to apparel and electronics to groceries.
02:16Our consumers celebrating this Bachat Kamau.
02:19So, Anurag Joshi is now standing by an in-orbit mall in Mumbai who's joining us now.
02:26Tell us, Anurag, what are you picking up?
02:29How's the mood there?
02:30What is the impact that you're seeing on ground?
02:34Yes, so the mall has just opened a while back and you can see around me there's the mall lighting
02:45and there are customers trickling in.
02:49And mind you, the trickle is building up.
02:52There are more customers coming to the mall today.
02:55Given the fact that it is a working day, it is the first day of the week, it is Monday.
03:00But in this mall, you have every possible aspect of consumption here.
03:07You've got garment brands, you've got shopper store, which is a department store.
03:12You've got jewelry stores, you've got consumer electronics, you've got a food court, you've got restaurants, and you have cinema theaters also.
03:22So, slowly, the mall is also expecting more and more customers to start coming as the GST, the saving festival kicks off.
03:39And with the new GST rate, the optimism is there in the air that there will be more sales happening.
03:47The pace of the momentum of sales is going to build up.
03:50And that we can see from the tempo here at the in-orbit mall at Malad.
04:07All right.
04:08Thanks, Anurag, for those details.
04:09But, Somita, let me come to you now.
04:11You're at the DLF mall here in Noida.
04:13What's the festive cheer looking like?
04:16You know, have customers already started rushing in?
04:18It's the first day of Navratri, and coupled with the GST rate cuts, have prices really come down?
04:23And is that attracting customers?
04:29Well, Ganeshka, let me tell you, I made the first set of purchase.
04:33Perhaps I was one amongst the, you know, early shoppers who made the most of, you know, an empty mall.
04:38And I wanted to cash in on as much as possible as far as these lower GST rates are concerned.
04:43But customers are still trickling in.
04:45And, in fact, most of them are essentially going to daily use item stores.
04:50And if I could just ask my camera person to pan over here, malls have put out these, you know, humongous displays of the kind of sales expectations, the kind of discounts that they can avail.
05:01For instance, this particular store right here, it's a sunglass store.
05:05And they have essentially put out, you know, these ads wherein customers can get 25% off.
05:10In fact, not just that.
05:12Various retailers have also been sending emailers to customers.
05:16I've gotten some of them as well on my email.
05:19In fact, what we're given to understand after talking to several of the retailers here is the fact that they have stocked up in anticipation of high demand.
05:27In fact, if we were to look at some data that the Retailers Association has put out, they say that an overall 10% increase at least is anticipated and expected, at least for the next two weeks.
05:38But what really happens post that, given the fact that luxury or single goods have an increased taxation bracket, that remains to be seen.
05:45But for now, this is my initial set of purchase.
05:47And I'm going to be splurging a bit more.
05:50I can see those big bags and perhaps a post office.
05:55Everyone is going to go and shop since Navratri in the auspicious period has already started.
05:59But it's not just those goods, but also a big saving coming in on a car for Kava as well.
06:06You know, with price cuts announced by major automakers, consumers are now lining up to book new cars as well this Navratri.
06:13So my colleague Anurag Shah is standing by at the Hyundai's dealership showroom in Dahisar to gauge how consumers are reacting to this festival bonanza.
06:24Take us through what you're picking up, Anurag.
06:26So first day of Navratri and first day of GST reduction implementation.
06:37So in automobiles, for small cars, complete benefit of 10% from 28% to 18%.
06:45So presently today, I am at Index Hyundai showroom in Dysar in Mumbai, MMR region.
06:52And in this showroom, there are 20 deliveries lined up for today and showroom is also expecting more than 30 bookings.
07:02So I'm joined by MD of Index Hyundai, Mr. Rajan Sharma.
07:07Sir, how is the excitement?
07:09First day of Navratri and GST reduction from 28% to 18% on small cars.
07:15So a lot of bookings today.
07:16Yeah, we are expecting a huge amount of bookings today, especially in the segment where the reduction has been more than 10%.
07:24Overall also, we are expecting higher bookings than normal because of the reduction in GST.
07:30Okay.
07:30So on which cars can you tell our viewers that benefit is there and what is the quantum of benefit?
07:37And you are saying that you are expecting more and more bookings.
07:39So by when the deliveries will be done and would you be able to fulfill the delivery commitments?
07:47Yeah, first of all, there are two segments where there will be in our portfolio where there will be reduction of almost 11%.
07:55That is venue segment and the aura segment.
07:58As far as deliveries and logistics are concerned, yes, logistics are going to be a challenge.
08:03However, I think all companies have planned the logistics very well and we are expecting that we will be able to fulfill the demand which will increase because of the reduction in GST during the festive period through a proper planning.
08:18We have already ordered the vehicles which will get built today and the companies have planned the logistics accordingly so that the vehicles reach us before Diwali and most of the deliveries are expected to be done by this era.
08:31Okay.
08:31And sir, what will happen to the older stock which you bought at the 28%?
08:36So what will happen to that stock?
08:39Will you face losses on that 28% GST if you have paid?
08:43See, as of now, we will not lose the amount of GST.
08:48GST, we use it as an input.
08:51However, the CES which was levied on higher vehicles like Creta, Alcazar and Tucson, there we,
08:59if we don't retail, if we have got some vehicles in the stock, these vehicles will face loss of CES in these vehicles.
09:08Okay.
09:08So one more question I want to ask, sir, for this festive season, what type of excitement or what type of bookings you are expecting?
09:17Because the 10% relief in smaller cars, i10, i20, extra, venue is there.
09:25And the benefit is, is it right to say that benefit is around 80,000 to 90,000 rupees?
09:29Yeah, we are absolutely bang on.
09:31I think the benefits in small cars is up to 1 lakh rupees.
09:34And this reduction is definitely going to push demand up.
09:38And we are expecting that we will be able to penetrate much more in this small entry-level SUV segment.
09:47Extra is expected to do much better than in this portfolio.
09:51I think overall there will be a positive impact as far as the reduction in GST is concerned.
09:57Okay, positive impact, but sales will be up by double digit 10%.
10:02Can you, can you, are you expecting that sales will be up by more than 10% this festive season because of this GST bonanza?
10:09I am expecting much more than 10%.
10:1110% will be a very conservative estimate.
10:14We are expecting that this would, this should lead to immediate upward demand of 20%, maybe more.
10:20I think we are expecting much more demand push from the market, especially in the smaller segment.
10:27Okay, so in a smaller segment, sales this time can be up by more than 20% also.
10:35These are the expectations because the relief on smaller cars like I10, I20, Venue, Aura, Xter is up to the 1 lakh rupees also.
10:45Correct, thank you Anurag for those details, that's the word coming from Mumbai, from my Hyundai dealership.
10:55But Nivedana, let's come to you, you know, closer to the capital, you're at a Maruti Suzuki dealership in Noida.
11:01So what's the mood there, lots of bookings for, you know, entry-level segments already, is it?
11:06Right, in fact, what we're looking at here is that all roads leading to all dealerships are as smooth as engines this morning.
11:18You know, with the fact that there is this policy boost that has come for the sector.
11:23But let me just get this conversation going ahead with Mukesh,
11:26but who is this little set who's going to tell us how this is a century pan,
11:31but especially for the small car segment where we're looking at larger bookings today.
11:35Yes, ma'am.
11:35All right, all right, we'll get you where Nivedana is, there is some sort of a technical glitch,
11:44but as the Hyundai dealership mentioned, there could be as much as a 20% jump on smaller cars
11:51as a result of this GST rate rationalization.
11:54Automakers are passing down the cost benefits to the consumers.
11:58Jude is also standing by at a two-wheeler dealership.
12:01Jude, tell us, what are you picking up?
12:03What is going to be the pickup year and year as a result of this big GST bonanza?
12:08Well, at the outset, a number of two-wheeler manufacturers we've spoken to in the last few weeks
12:19have already spoken about this probably being the quote-unquote best Diwali ever in terms of sales.
12:26And why not?
12:26The fact remains that with the GST rationalization taking form and shape,
12:30a number of these bikes that you see behind me at this Yamaha dealership on Chennai's IT Expressway
12:37could well be seeing some happy days, especially on the price front.
12:41In fact, in the background of these vehicles, you can see the new price mentioned there,
12:47the exorbitum price of these vehicles.
12:49In fact, the bike that you're seeing right now, which is the R15M,
12:52could well see the biggest price benefit of about 17,500 rupees,
12:57even as the FZS F1 is also seeing a massive price advantage by way of the rates,
13:05the new GST rates itself.
13:06And it's early days still, it's a business hour that just opened,
13:11but the dealership has already printed out, for the benefit of its customers,
13:15a ready reckoner of sorts, old price versus new price,
13:18which clearly explains the kind of a benefit that customers here at Yamaha will enjoy
13:23should they choose to make a purchase.
13:24As you can see, the R15 there seeing a benefit of up to 17,581 rupees,
13:30the MT15 also seeing a 12,031 rupees.
13:34In all, prices are ranging, price advantage that is,
13:37have ranged between 8,000 to 20,000 rupees per purchase,
13:42even as GST rates on two-wheelers, sub-350cc, which is a large part of the market,
13:48have been brought down from 28% GST to just about 18% GST.
13:54So while two-wheeler makers are all set and are prepping for a bumper festive season,
13:59the GST festival has come just in time to help these sales hit a whole new notch in terms of volume.
14:06And for all you know, it could well be the best festive season or the best Diwali ever
14:10for a number of two-wheeler makers right here in India.
14:13All right, thanks, Jood.
14:17Let's see if it does happen to be the best festive season for two-wheelers makers.
14:21But Samir, let's come to you now shifting focus to the electronics segment.
14:25How are things looking at Vijay sales?
14:27What kind of demand are you seeing from shoppers?
14:29So definitely the positive sentiment is not just restricted to the auto sector.
14:38Even in the consumer durable industry, we are seeing that the positive sentiment is there
14:42and the kind of benefit that a customer can avail, it is reflected in the various segment as well.
14:49Right now I'm standing in the AC segment, and if you see, there are a couple of that offers,
14:55other discounts which are already being displayed over here.
14:57But in addition to this, we are also getting to know that a big banner that will be placed over here
15:01because the store has just opened, so preparation is still underway.
15:05But a big banner will be posted over here, and we can see that the customers, they are coming up.
15:09Let's get to know from them that how they are looking, ma'am.
15:12We are smiling.
15:13It seems that you want to take the benefit of GST.
15:15Have you got some benefit of GST?
15:17Yes, yes.
15:17So what are you seeing from GST?
15:20And what are you seeing from GST, which is the benefit of GST, which is the benefit of GST?
15:24GST.
15:25It seems that we can see a little bit and get the benefit of GST.
15:29Now, it's started from today.
15:32Now, let's see what happens and what happens.
15:35Yes, I think it's a big one.
15:36Yes, absolutely.
15:37You're telling me that you're saying that the GST is the benefit of GST, which is the benefit of GST,
15:40but you're saying that the GST is the benefit of GST, which is the benefit of GST.
15:42Yes, definitely.
15:44But we are a regular customer of this place.
15:47Okay.
15:48What are you seeing from this product?
15:49And what do you think that in this festival season,
15:51that the purchase of GST will be a very useful for you?
15:54No, I was looking at a small item.
15:56Just a fan.
15:57Sailing fan.
15:58Correct.
15:59And I'm looking at other products.
16:00Yes.
16:01We have all this stuff from the store.
16:05So the customers are smiling because they know that they are going to have some sort of benefit.
16:09And let me show you that there are a couple of other segments as well.
16:12Over here, since the store has just opened, but the entire store has been geared up for this festive season.
16:17The number of discount or the other additional offers that will be displayed.
16:21And the customer understands that this might be the right time to make the decision to buy any of the appliance that they are looking at.
16:27But in addition to this, let me tell you that the GST rate rationalization is more effective for the AC segment and the TV,
16:34which is 32 inch and above.
16:36Because in these two segments, the rate has been slashed from 28% to 18%.
16:41All right.
16:44Well, that's a whole host, a comprehensive roundup of how the GST is going to impact all of you joining us from various stores,
16:52whether it's the auto dealers, consumer durables, and shopping malls.
16:56Thank you so much for joining us and getting us the ground.
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