4.8 mn weddings boost business for jewellery, apparel, auto, and hotels

The wedding season is in full swing, and an estimated 4.8 million couples are expected to tie the knot before the year draws to a close. For sectors such as jewellery, apparel, hotels, and even automobiles, this season has created a ripple effect, turning what might have been a sluggish year for many businesses into one of strong recovery. 

 

The apparel industry, which faced significant challenges earlier in the year, is now experiencing a revival. Store visits had started to increase during the festive months, beginning with Navratri, and now weddings are providing an added boost.

 

“Wedding demand is higher by 20 per cent compared to last year. This uptick started in October and has continued post-Diwali,” says Mayank Mohanlal, CEO of Mohanlal Sons, a New Delhi-based fashion retailer. He believes this surge in demand could help the sector match last year’s sales after months of decline. He expects the momentum to sustain for at least another two months.

 

In southern India, designer sarees are particularly in demand, with an expected 22-25 per cent rise in sales, according to Jhansi Rani Chalavadi, co-founder of Sai Silks Kalamandir. “The wedding industry is a major driver for saree sales in the South, contributing significantly to the market,” she notes. Each South Indian wedding, she adds, typically involves the purchase of 50-100 sarees in a range of prices. The southern wedding and festive saree market alone contributes 50-55 per cent to the overall saree sales on these occasions, she says.

 

Jewellery stores across India, too, are buzzing with customers despite high gold prices. Wedding-related purchases are driving the bulk of the demand.

 

“We are extremely excited about the way the current year has progressed thus far, despite volatile gold prices,” says Ramesh Kalyanaraman, executive director at Kalyan Jewellers. Footfalls have been robust even with gold prices at record highs at the start of the quarter, he adds. Wedding shoppers, he explains, have been quick to take advantage of the price dip during the first week of November, “enabling us to register strong demand during the first half of Q3FY25”.

 

Same-store sales grew by over 20 per cent during Diwali compared to last year, Kalyanaraman says while drawing attention to an increase in demand for men's jewellery, particularly in urban areas where grooms are experimenting with pairing their outfits with such precious accessories.

 

Within jewellery, diamonds are drawing a good deal of attention. The demand for diamond jewellery is up 15 per cent this wedding season compared to 8 per cent last year, says Amit Pratihari, managing director of South African-British diamond company De Beers India. And whatever one might say about lab-grown diamonds gaining currency, it is natural diamonds that remain sought after, “especially oversized 1- and 2-carat ones”.

 

There’s another trend that Pratihari has observed: A preference for coloured diamonds among brides, who are pairing them with their groom’s birthstone. So, along with yellow or white diamonds, they are choosing pink, green, blue sapphires, emeralds or red rubies.

 

The higher number of auspicious dates for weddings this year vis-à-vis the last has got the cash registers ringing for hotels as well, with many venues booked solid. 

 

Puneet Chhatwal, MD and CEO of Indian Hotels Company Ltd, shared his optimism during a recent earnings call: “With 30 per cent higher wedding dates and increase in foreign tourist arrivals expected in H2, we remain confident of comfortably delivering double-digit revenue growth, even excluding the positive impact of TajSATS.”

 

Stephen D'Souza, general manager and associate vice president-cluster operations at Chalet Hotels, echoes this sentiment, noting a 21 per cent increase in business compared to last year. Chalet Hotels’ portfolio includes 10 hotels, among which are Four Points by Sheraton, JW Marriott, The Westin and The Dukes Retreat (Khandala). D'Souza, says 50-60 per cent of Chalet Hotels’ food and beverage (F&B) revenue comes from banquets, much of it driven by weddings.

 

Meanwhile, destination weddings remain in vogue. Kadmbini Mittal, regional vice-president-commercial, India and Southwest Asia, Hyatt India Consultancy, points out that Thailand, Indonesia (Bali), and Vietnam are particularly popular among Indian couples. But this does not diminish the appeal of city weddings, adds Vishal Kamat, executive director, Kamat Hotels.

 

“To cater to this demand, hotel chains are offering flexible all-inclusive packages with international chains like Shangri-La, Radisson, and Hilton launching customised services for destination weddings,” says Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India. Last year, Deloitte collaborated with the Events and Entertainment Management Associated to prepare a draft wedding tourism policy with the aim to establish India as a top choice for destination weddings. 

 

Automobile sales have also benefitted from the wedding frenzy. Gifting vehicles at weddings has long been a tradition in India, but the sheer volume of weddings this year has led to a noticeable uptick in enquiries at dealerships.

 

Partho Banerjee, senior executive officer of marketing and sales at Maruti Suzuki India, says retail sales grew by over 22 per cent in October alone.

 

The Federation of Automobile Dealers Associations (Fada) anticipates a boost across vehicle segments, including two-wheelers and four-wheelers. "It’s difficult to quantify, but with 4.8 million weddings, we expect a significant jump in demand,” says Fada President CS Vigneshwar. He also mentions an interesting trend from the city of Namakkal in Tamil Nadu, where lorries are being gifted at weddings.

 

Rakesh Sharma, executive director, Bajaj Auto, adds, “Indeed this is a mini wedding season in some parts of the country. And this serves as one of the multiple factors that drive demand.”

 

Fada notes that during the 42-day festival window, from October 3 to November 13, the automotive sector saw an 11.76 per cent year-on-year growth, with over 4.28 million vehicles sold across all segments. 

Match points

 

Apparel:

 

• Demand up 20% from last year 
• Southern India seeing 22-25% rise in designer saree sales

 

Jewellery:

 

• Strong demand despite high gold prices 
• Diamond jewellery demand up 15%; coloured diamonds trending 
• Men’s jewellery gaining popularity

 

Hotels:

 

• 30% more wedding dates boosting bookings 
• Increase in banquet business at luxury hotels

 

Automobiles:

 

• Maruti Suzuki India says retail sales grew 22% in Oct 
• Fada says sector saw 11.76% y-o-y growth, with over 4.28 mn vehicles sold across segments from Oct 3 to Nov 13