With the festive season around the corner, consumer durable makers are anticipating up to 40 per cent year-on-year growth this year.
“The summer season this year was tough due to unseasonal rains and weather uncertainties, we are optimistic that the festive season will do much better due to the pent-up demand. Festive sales usually comprise around 28–30 per cent of our annual sales. This year we are targeting 40 per cent growth over last year. The premium segment this year has been witnessing over 30 per cent growth,” said Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, part of Godrej & Boyce to businessline.
Industry body Consumer Electronics and Appliances Manufacturers (CEAMA) is expecting an uptick in sales for companies with the festive season coinciding with the World Cup. “Last year, we witnessed a favourable shift in consumer purchasing patterns. This year the Cricket World Cup is coinciding with the festive season and we anticipate a further boost in demand and consumer spending in multiple product categories. We are expecting 10-15 per cent growth this festive period,” said Eric Braganza of President, CEAMA.
“Two of the biggest Chinese television brands which are present in the smartphone category are stopping their TV operations in India. This might be the right time to gain market share, we are expecting good growth this year. We are launching more than 25 new models of washing machines in next two months,” said Avneet Singh Marwah, CEO of SPPL Exclusive brand licensee of Thomson in India
Sales in H2
The sales of white goods are impacted owing to erratic weather conditions in H1 and companies are betting big on demand in H2 on the backdrop of new products line-up. “June onwards an uptake was seen in AC sales which grew 28 per cent compared to the same period last year. In line with the industry, our appliances business also grew in June backed by the sale of premium appliances such as 4K LEDs and inverter ACs. We have strengthened our product line-up and will soon be introducing our new refrigerator and washing machine line-up,” said Fumiyasu Fujimori, Managing Director, Panasonic Marketing India, Panasonic Life Solutions India. “With festivities spreading across two months and a line-up of new products, we are targeting over 30 per cent growth in H2,” added Kamal Nandi.
With higher competition, companies will offer bigger discounts, bigger offers, higher R&D spending, and will launch new products, according to ICICI Securities.
“Companies are expected to offer attractive discounts and promotional deals, potentially leading to heightened consumption,” added Eric Braganza “We are launching the ‘Dream More, Celebrate More’ offers for Onam, presenting consumers with attractive discounts across our product range,” added Fumiyasu Fujimori.