Consumer appliance makers said they are witnessing strong demand trends for mid- and premium segment products during the ongoing festival season. Players expect to see a further spike in sales over the next five days. Companies such as LG, Godrej Appliances and Haier Appliances said they are witnessing high double-digit growth in the premium categories. Buyers are increasingly opting for attractive consumer financing offers to upgrade to the premium segment.
Ashish Agrawal, Senior VP and Head - GTM, LG Electronics India, said, “We are witnessing good growth across categories especially premium segment like 55-inch screen size and above televisions, big capacity refrigerators, microwaves and washing machines, registering 40-60 per cent growth. For flat panels, the TV sporting season is driving good growth. Our festive offers are also very attractive, which is certainly a booster for consumers.”
Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, pointed out that the consumer durables industry is expected to see value growth of 20-25 per cent in the festival season spanning across the months of October and November. “This growth is being driven by mid and premium segments across categories. Even for air-conditioners, the demand is very good, as temperatures have been warmer than usual in various parts of the country. Industry is expected to garner a volume growth of 5-10 per cent over last year, but demand for the entry-level segment has been muted,” he added. Nandi said that overall Godrej Appliances is on track to achieve a growth of over 30 per cent this festival season.
Nilesh Gupta, Director, Vijay Sales, said the company is seeing 20-25 per cent growth over last year. “Consumer sentiment is very positive and they seem to be in complete buying mode. Nearly 80 per cent of purchases of consumer durables now happen through consumer financing schemes. With very attractive EMI offers, we are seeing consumers increasingly opting to upgrade to mid or premium segments, especially in the large cities and State capitals. This is one of the key reasons why demand for the entry-level segment seems subdued,” he explained.
N S Satish, President, Haier Appliances India, echoed a similar sentiment. “We have already observed that premiumisation has been a consistent trend in the Indian consumer electronics industry and premium segments continue to lead the festive sales. This year, we are expecting an overall growth of over 30 per cent,” he said.
Fumiyasu Fujimori, MD, Panasonic Marketing India, PLSIND, added that the company is “anticipating a promising festive season this year and are hoping to achieve a double-digit growth during this festive season.”