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As the festive season hits its fag end from Dhanteras to Diwali, consumer durable firms and analysts have mixed views on buying sentiment.
While they admit that cost pressures and inflation have impacted consumer sentiment, durable firms say some categories have seen good sales.
Shantanu Dasgupta, Vice-President, Corporate Affairs and Strategy-South Asia, Whirlpool India, said, “Festive season sales are in line with our expectations. The euphoria that durables firm saw in 2009-10 is missing, as consumers have been impacted due to inflation and cost pressures. But we have seen some high-end products categories doing well.”
Premium products shine
LG India said it expected nearly 30-35 per cent growth over last year in the period from Dhanteras till Diwali. Sanjeev Agarwal-Sales Head, LG India, said, “Premium products like flat panel TVs, 42-inches and above, front load washing machines and convection microwaves have seen a jump in sales. Also, the wedding season coinciding with the festive season has further boosted demand.”
According to a study on consumer buying trends this festive season, market research firm Market Xcel said low-cost home appliances are expected to see sales. It said nearly 56 per cent of the consumers surveyed indicated an intention to buy LED TVs this Diwali, while 16 per cent were looking to buy refrigerators.
Eric Braganza, President, Haier India, and Secretary of Consumer Electronics and Appliances Manufacturers Association (CEAMA), said, “Consumer sentiment seems buoyant for categories like panel TVs followed by refrigerators and washing machines.”
He said Haier India expected to close 60 per cent higher than last October. Though he admitted that overall, consumer sentiment for the industry was a bit subdued.
While sales were better, these were not as good as the durable firms traditionally see during Diwali.
Challenging times
Meanwhile, Frost & Sullivan said the consumer electronics market in India has been going through challenging times since last year due to price rise, lower consumer spending, restrictions on easy instalment schemes among others.
Deepa Doraiswamy Industry Manager, Electronics & Security Practice, Frost & Sullivan, said, “Typically, most consumer durable companies generate almost 30-40 per cent of their revenues during the festival season, which starts from Onam all the way up-to the New Year. This year, too, trends indicate that consumer durable majors are poised to register nearly 35-50 per cent growth in the festive period sales compared with last year with the market growing at a CAGR of 15.58 per cent by 2015.”
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