Consumer Durables Industry Feels GST Will Not Impact Sales
Consumer electronics industry feels no pinch as the GST roll out lands during the off season for this sector
Consumer electronics industry feels no pinch as the GST roll out lands during the off season for this sector. The marathon discussions about goods and service tax are over and all the states are ready for their sprint from July 1st, 2017.
The consumer electronics sector, especially the white goods such as Refrigerators and Air Conditioners are not expecting a major hit in their sales because July to September is their low season in terms of sales.
Talking to BW Businessworld, Manish Sharma, President, Panasonic & CEAMA ( Consumer Electronics Appliances Manufactures Association) said "There will be no significant impact on our industry. From July to September there is no such demand. The only concern is our trade partner, the consumer will keep buying and it will not impact retail business."
During the peak summer season from April to June all the leading consumer durables company sell their 35 per cent stock. The July to September period counts for 18-20 per cent of sales.
In the second quarter of the financial year, the B2B demands are high which will boost the sales. Videocon has partnered with ASSOCHAM to conduct 200 workshops in the country and make aware the retailers about all the basic things about GST.
These workshops will also impact on their sales as the trade partners are still unclear about the policies.
Videocon, COO, C M Singh, said, "The second quarter of the financial year is traditionally weak. Secondary sales will not have any impact because consumers are buying the only problem is dealers are a bit scared of purchasing stock. They are waiting for more clarity but I am sure market is not going to fall."
Consumer Durables players are hoping that in the initial three months the industry will get a sense of GST implications and it will pan out smoothly. Post the pan put they will ride on festive seasons such as Onam, Durga Puja and Diwali.
Akai's Director, Anurag Sharma feels that there is still some ambiguity over many things but it's a good decision for the long run. He said, 'There may be a slight dip in the sales but no significant impact.