Why India Inc is upbeat about wedding season for a rebound in demand

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After a subdued second quarter, consumer-facing sectors are gearing up for a surge in demand during the ongoing wedding season, which runs from October to December. Analysts estimate approximately 48 lakh weddings will take place during this period, fuelling growth in sectors such as jewellery, retail, hospitality and automobiles.

Weakened urban demand and the fact that key festivals fell on different dates this year affected discretionary spending in the second quarter, with categories like quick-service restaurants (QSRs), footwear and apparel seeing sluggish sales. However, analysts feel that the value segment has begun to recover, reflecting cautious consumer preferences for affordable options. Companies are optimistic about a demand revival in the third quarter, supported by an increase in auspicious dates for weddings and favourable policy changes, such as a reduction in customs duty on gold.

Although the growth is expected to be robust, sustainance of growth beyond the wedding season is important, said Preeyam Tolia, FMCG & Retail vertical at Axis Securities. "It will be good for sectors like jewellery, apparels and luxury segments like luxury watches but the growth will be limilted to in and around the wedding season," said Tolia.

Jewellery brands are already witnessing a significant uptick. According to brokerage Motilal Oswal, the reduction in customs duty on gold has spurred wedding jewellery demand, which is expected to remain robust over the next two quarters.

"We are witnessing healthy demand for bridal jewellery across all our stores in India. Pre-booking numbers are also encouraging. We expect a robust bridal jewellery season, better than last fiscal year," said MP Ahammed, chairman, Malabar Gold and Diamonds.

Titan, which owns jewellery brands Tanishq and Mia by Tanishq, shared similar optimism. Ajoy Chawla, CEO of Titan's jewellery division, highlighted the impact of gold price corrections following the customs duty cut. "Many fence-sitters have now made purchases. Given the kind of business we've seen in October, we are quite happy with the performance and expect decent growth over the next two quarters," Chawla said.

According to industry estimates, the November-December period will generate Rs 6 lakh crore in business, up from Rs 4.7 lakh crore during the same period last year, when 38 lakh weddings were held, according to the Confederation of All India Traders (CAIT). The increase in wedding dates over these two months to 18 this year compared to 11 last year—is driving this growth. Delhi alone is expected to host 4.5 lakh weddings, contributing an estimated Rs 1.5 lakh crore to the economy.

Popular wedding attire brand Manyavar, owned by Vedant Fashions, is also preparing for strong demand. CEO Vedant Modi said, "With decent dates in November, December and the fourth quarter, we are positive about the overall business trajectory. We are fully geared up with the best inventory, world-class auto replenishment system, and robust back-end dynamics."

Footwear company Metrobrands echoed this sentiment. "Sales are in line with expectations, and with a strong lineup of wedding dates in November and December, we anticipate continued momentum," said CEO Nissan Joseph during the company’s October 24 earnings call.

As businesses align their strategies and inventory for the wedding season, the anticipated demand spike offers hope for a strong recovery, especially in discretionary spending categories. With weddings fuelling a wide range of industries, India Inc is banking on the season to revive growth after a challenging start to the year.