Consumer durable makers saw a 25 per cent growth year-on-year this festive season on the back of the ICC Men’s Cricket World Cup and a longer festive period.
“The growth is largely driven by the premium segment and is concentrated more in the urban market. Last year, the festivities were only in October whereas this year the festivals were spread across two months. There is a growth of 20-25 per cent y-o-y. We see two types of segment consuming very high, one is the affluent class which is consuming premium products and second segment comprises the new young consumers who are moving straight to premium segment because of easy availability of finance,” said Kamal Nandi, Business Head and Executive Vice-President of Godrej Appliances, part of Godrej & Boyce.
The surge in demand was also aided by festive offers from companies.
“The customers have shown positive response to the festive offers. Starting Onam, we announced an array of exciting offers such as 20 per cent instant cashback, EMIs starting as low as ₹994, long EMI tenures up to 24 months, and extended warranty on chosen appliances. We witnessed a growth of 35 per cent this festive period vs last year,” said NS Satish, President of Haier Appliances India.
Premium refrigerators registered a growth of 40 per cent, while air-conditioners (ACs) saw a growth of 50 per cent. Consumers opted for bigger-screen televisions during the festive season.
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“This season, we saw a high spike in large TVs, especially 50, 55 and 65 inches. Demand for Google and Android televisions in rural markets has gone up. An overall growth of 12 per cent was registered,” said Avneet Singh Marwah, CEO of Super Plastronics, an exclusive brand licensee of Thomson in India.
The rural market is expected to pick up likely to pick up next year.
“The mass segment has been under pressure on consumption because of coronavirus and then inflationary trend. We are seeing signs of inflation softening, if it continues then we will see the mass segment consumption going up. We should see the segment consuming during summer months, Q4 of this year and Q1 of next year,” he added.
Industry experts are anticipating a dip in demand for consumer durables after the festive season.
“Post festive season, there is always a lull, but with the marriage season starting, we expect sales of entry-level products to go up,” said Eric Braganza, President of Consumer Electronics and Appliances Manufacturing.