Chennai: Unorganised traders, who have alleging that e-commerce companies have been grabbing away their business, anticipate a drop of 50 to 60 per cent of sales during the festive season this year.
With a week more to go for Diwali, the commercial markets in different cities, comprising of small and medium traders, are witnessing a slump in business. Usually, the retail trade in India does an annual business of about Rs 45 lakh crore of which festive season alone accounts for about Rs 6 lakh crore.
According to the Confederation of All-India Traders (Cait), traders are witnessing around 60 per cent drop in business as a major chunk of the sales has shifted online.
The mobile phone category is witnessing a slump of 60 per cent. Sales of FMCG goods, consumer durables and electronics goods have dropped 35 per cent and electrical appliances, 30 per cent, Cait said. In apparels, which is a major category for Diwali season, a 25 per cent drop is expected. A 20 per cent fall is expected in footwear and watches and 30 per cent in beauty and cosmetics and bags.
Festival-specific items too are seeing a slump—35 per cent in gift items, 25 per cent in furnishing goods and 25 per cent in decorative items.
Building hardware is seeing a 15 per cent decline in sales, 30 per cent in kitchen equipment. 30 per cent in computer and computer goods and 30 per cent in fitness and sports goods, finds Cait.
There are about seven crore small businesses in the country, generating about 45 crore jobs, it said.