No Diwali gifts? Cheer up, you’re not alone

The biggest disappointment, of course, all shopkeepers say, is the fact that corporates have cut their budgets dramatically. The head of Titan’sinstitutional sales in Mumbai says that sales are down by almost 25 per cent. “Despite offering hefty discounts, corporates are not buying. Even in our showrooms, the usual crowds are missing.” Corporate gifts are believed to be down around 30 per cent in most segments.

Even a traditional bestseller like gold isn’t getting too many additional customers. Though, according to M J Damani, President of Bombay Bullion Association, gold sales have increased as compared to last year, the problem is that with a large number of new shops coming up, the sales from individual shops remains relatively poor. This comes at a time when the World Gold Council was expecting global gold prices to look up based on high Indian demand.

The usual Diwali gift items like dry fruits, silver items and watches are down by almost 40 per cent as prices of these have soared by almost 35 per cent over the previous year. Sales at American Dry Fruits has slumped as there are no takers. “We are sending dry fruits this time only tothe chairmen of banks and FIs and top bureaucrats unlike last year when dry fruits were distributed like papad,” says customer H Shah.

A fact confirmed by the disappointed R. C. Bansal whose shop in Delhi’s upscale Defence Colony in New Delhi has found sales falling to just a fraction. “The ones who would buy ten items are now buying one,” he says bitterly. “They are sending gifts only to those who they can’t do without sending gifts to. My main customers were Seagram, Rolls Royce, Dabhol. This year the orders are practically nil.”

Anil Garg of Garg Sweets in the same neighbourhood, of course, is a bit more optimistic. “One never knows. There are still two days to go. Last year on Dhanteras, sales were also very bad, but they picked up later.”

The recession, which had made finance companies like Kotak Mahindra to even cut down on tea for its employees, has now trickled down to all levels in the corporate hierarchy.

“When multinational companies like Hindustan Lever start paying theminimum bonus of a measly Rs 6,000, there is something wrong,” says an Hindustan Liver Limited employee.

Essar Steel, which till last year was rewarding Arrows and Van Heusens to its employees, has slashed its expenses as the company is grappling with falling steel prices worldwide and high inventories.

“This year we are more worried about retaining our jobs instead of expecting Arrows from our employers,” said a Hazira-based employee.

Shopkeepers, of course, are still not giving up hope, and are still waiting for the last minute spurt. But, apart from hefty bonuses by a few such as the Reliances of the world, the pickings look poor.