Source | economictimes.indiatimes.com | Writankar Mukherjee | Ketan Thakkar, ET Bureau
A big rush for talent and soaring salary offers in the white collar job market amid the ‘Great Resignation’ are boosting sales of premium smartphones, electronics and cars in the country even as overall discretionary spending has slipped.
Professionals who are switching jobs or getting retained by their existing employers at much higher salaries than before are upgrading their gadgets and cars in a rush of euphoria, brands and retailers said. This is driving higher value growth for marketers in categories like smartphones and consumer electronics even as their volume growth has slowed down in the last two months amid high inflation and rising in interest rates, they said.
“Young professionals are driving a sizable premiumisation in urban markets and also becoming key influencers in buying decisions, driving a higher share of sales of technologically advanced products,” said Deepak Bansal, vice president at LG Electronics, the country’s largest appliance manufacturer. “This is driving value growth for the industry since volume growth has come under pressure in the last few weeks.”
At electronics retail chain Vijay Sales, volume growth for electronic products is 4-5%, while value growth is in excess of 25%, its director Nilesh Gupta said. People are changing jobs at much higher percentage of raise than pre-Covid, he said.