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Home Appliance Makers Expect Big Sales This Festive Season
Consumer Electronics and Appliances Manufacturers Association (CEAMA) says the industry is looking at a sales growth of 15-20 per cent during this festive season due to pent-up demand coupled with expectations of higher spending on quality products
Photo Credit : Shutterstock
With the onset of the festive season (October-November-December), several consumer durable majors are hoping for a surge in demand that would translate into increased sales numbers. Durable majors including Panasonic, LG, Haier, Godrej Appliances, among others are anticipating a pent-up demand that could boost sales of premium products across categories including large-screen TVs, front-load washing machines, and bigger capacity refrigerators this festive season. If that happens, it may just be able to cover the losses incurred due to lockdowns and changed consumer spending in the pandemic-infested year that went by.
Consumer Electronics and Appliances Manufacturers Association (CEAMA) says the industry is looking at a sales growth of 15-20 per cent during this festive season across the board. The association claims that the consumer durable industry is expecting an upward trajectory in sales despite inflationary pressure on inputs that led to a price hike twice in the year, shortage of components such as chipsets, and a threat of a third wave of the pandemic.
Eric Braganza, President CEAMA and also President, Haier Appliances India says, “There is pent-up demand as a result of last two years of pandemic and the sector is expecting a positive consumer sentiment with double-digit growth.” Why? “The avenues to spend money were restricted due to the pandemic. This has led to more disposable income at the hands of the consumers. Thus, with additional money available, the consumers would want to upgrade their televisions, refrigerators, washing machines and purchase new products. The two years of the pandemic have been difficult for the consumers and they are gearing up to celebrate the festival season,” he adds.
Panasonic India has expanded its home appliance segment with the launch of 43 new models of the refrigerator and 24 new models of washing machines to meet the rising demand, ahead of the festive season. Manish Sharma, Chairman and CEO, Panasonic India, says, “We have seen a 20 per cent growth during the last 10-days of the festive season and are hoping for an increased momentum closer to Diwali. There is a gradual shift in consumer behaviour from price consciousness towards quality and value proposition. Ecommerce further proliferates this trend driving the penetration for value proposition appliances across Tier-III markets," he adds.
Another leading consumer durables major LG Electronics India has rolled out a wider gamut of differentiated technology products like Rollable OLED TVs, Instaview Side by Side Refrigerator (Door in Door), Washer Dryers, among other products before the festive season, as it does every year. Deepak Bansal- VP- Corporate Planning- LG Electronics India says, “Definitely, we are bullish on sales owing to good demand in replacement market; work from home is leading to good demand in consumer electronics & bigger capacity appliances. With the upcoming marriage season, we expect good demand. We have seen double-digit growth this festive season and we are expecting the trend to continue.”
For Godrej Appliances, the festive season kickstarted positively with Onam driving 33% sales growth in Kerala. "The quarter is usually conducive to higher end premium segments – and over the last two quarters, we have already seen overall higher traction for frost free refrigerators and fully automatic washing machines. Until September 2021, we have already achieved close to 25% higher sales and are aiming to maintain the same pace till year," reveals Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances.
Even though sales remain buoyant, the industry still feels it is not yet out of the words with the looming threat of the third wave of Covid-19. As Sharma from Panasonic India puts it, “We are hoping to maintain the growth momentum throughout the festive season to make up for losses due to the pandemic. The only potential risk is the possibility of a third wave, which can derail the performance.”