New Delhi : The festival season is going to arrive in India soon. Even before this upcoming festive season, the prices of raw materials used for products like footwear, electronic wearables, kitchenware and home furnishing are seeing an increase. This has been confirmed by data analyzed by e-commerce enablement platform Unicommerce. It is being said in this analysis that as the festive season is approaching, the brands and retailers associated with this sector are increasing the prices of raw materials to meet the demands of the consumers.
Data shows that inventory levels have increased significantly across categories from June to August 2024, with some segments such as footwear, electronic wearables, kitchenware and home furnishing witnessing a sharp rise in inventory i.e. raw material prices . According to company data, footwear brands have increased their inventory by more than 55 percent, while electronic wearables have seen a growth of 33 percent.
Kitchenware and home furnishing and decor brands have also geared up, with inventory increasing by 30 percent and 26 percent, respectively. However, the highest inventory build-up has occurred in the jewelery and healthy snack categories, where stock levels have increased by over 100 per cent and 75 per cent, respectively, in line with seasonal shopping trends. Inventory build-up is crucial to ensure faster delivery, as brands aim to meet service level agreements (SLAs) during the festive period, when demand peaks and pressure on logistics networks increases.
Talking about the preparations, Kapil Makhija, MD & CEO, Unicommerce, said, “E-commerce is at the center stage as shoppers fill their festive carts in India. “Unicommerce’s technology provides the capacity and additional cushion to support e-commerce companies and retail brands during this period.”
The analysis is based on data assessment of the company's top 80+ customers. The company manages over 8300 warehouses and over 2950 omnichannel stores in India, Middle East and South East Asia.
(with agency input)
