The consumer durables market that has been facing the heat over the last two festival seasons after undergoing severe repercussions from Covid -19 is all set to make a comeback with new launches and premium products for its consumers this season.

Companies have stated that they are looking for growth in business this festival season on par with the pre-pandemic levels and will be offering lucrative deals to their consumers. With no-cost EMIs, extended warranties, cashbacks and easy financing options on consumer durable products, companies are hoping to steer the sales in the upcoming festival season.

“We are approaching the festival season starting with Onam in Kerala first, followed by Durga Puja, Navratri, and Dussehra-ending with Diwali in October. Festive sales usually comprise around 28–30 per cent of the annual sales for us. This year in Q2 FY23 during Onam festivities, we are targeting 30 per cent+ growth over last year as well as pre-pandemic. We are cautiously optimistic as far as the mass segment is concerned, but the premium segment is expected to continue doing very well in festive as well and will form the focus across categories.” said Kamal Nandi, Business Head and Executive Vice President at Godrej Appliances, part of Godrej & Boyce.

Focus on consumer electronic segment

Companies have also stated that their focus in the season would be on the consumer electronic segments and will also target home and kitchen appliances for growth.

“The festive season is a crucial period for the FMCD industry as many categories will see an uptake in sales volume during this period. We’re expecting healthy demand during the festive season and are well poised to take our cutting-edge, intuitive and aesthetically appealing appliances to every Indian household. Our focus this festive season will be on kitchen appliances such as mixer grinders and OTGs, and seasonal products like water heaters and room heaters. We are also planning new launches this festive season, which will be supported by a pan-India multimedia campaign to further strengthen the brand presence. “ Ravindra Singh Negi, Chief Operating Officer – Consumer Products, Bajaj Electricals Limited.

A surge in demand for air conditioners and home appliances that have the latest technologies is anticipated by the companies. “The demand will be driven by replacement needs, home renovation, and the need for products with advanced features. To encourage purchases this festival season, we have introduced interesting offers that include exchange offers, special cashbacks of upto 15 per cent, a five-year comprehensive warranty and other attractive financing options starting from Onam,“ said Pradeep Bakshi, Managing Director and CEO, Voltas Limited.

Targeting double-digit growth

Citing an increase in demand for products, companies have also stated that they are targeting double-digit growth with improved economic conditions in the festive season, “We are seeing a rise in demand for premium appliances that are easy to use (allowing consumers to multi-task), energy-efficient, connected (smart), and add to health and hygiene. Ahead of the festive season, we have introduced exclusive offers and introduced several new products under our TV, Washing Machines and Microwave range. We are targeting double-digit growth in the festive season reinforced by all home appliances,” said Fumiyasu Fujimori, Managing Director, Panasonic Marketing India.

According to analysts, white goods and consumer durables, such as larger TVs, refrigerators, and washing machines, are likely to be driving the revenue growth for the companies in the season as compared to the last fiscal.

"The consumer durable sector is seeing a trend of up-trading-higher size TVs, refrigerators, and washing machines. This is expected to drive revenue growth during the upcoming festive season, stock build up for which has begun. Players too are expected to provide various offers such as no-cost EMIs, cashback, extended warranty and easy financing options to drive sales. A good festive season will also provide a boost to consumer durable demand (comprising of televisions, refrigerators, washing machines and air conditioners) this fiscal, with revenue expected to grow by 15–18 per cent on-year. Growth this fiscal will be driven by volumes as compared to the last fiscal, where it was majorly driven by value on account of sharp product price hikes due to rise in input commodity cost." said Pushan Sharma, Director, CRISIL Research.

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