High demand for premium products helped the consumer durables segment witness strong value growth, especially during the festival season in 2022. This meant that premium segments such as front-load washing machines, side-by-side refrigerators and UHD televisions garnered higher growth levels.
Players said the entry or mass segment witnessed subdued demand but there are expectations that it may see an uptick in demand during the fourth quarter with the onset of summers.
According to data sourced by businessline from market research firm GfK, washing machines, refrigerators and air-conditioners witnessed sales value growth in the range of 15-20 per cent during the September-November 2022 period over the same period in 2021. Meanwhile, the television segment garnered a value growth of 10 per cent.
Anant Jain, Head of Customer Success, Market Intelligence – India, GfK, said, “According to GfK market intelligence offline monthly retail sales tracking for the period September-November 2022 vs 2021, this year’s festival season seems to have brightened up the industry with high sales growth. Growth in the appliances category was largely driven by premium segments like front-load washing machines and side-by-side refrigerators.”
The front-load washing machines segment witnessed a value growth of 25 per cent and split air-conditioner segment was up 32 per cent during the period. Side-by-side refrigerators segment, too, garnered double digit growth of about 16 per cent. Even the panel TV growth was led by the UHD television segment which garnered a growth of 28 per cent during this period.
“Likewise, a significant growth was also seen for many small domestic appliances products like the food processor category with value growth of 18 per cent, vacuum cleaner growing by 12 per cent and categories like air-coolers also growing by 16 per cent,” Jain added.
Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, said, “We have witnessed growth in premium segments over mass segments across geographies and channels. For Godrej Appliances, the premium segment has grown over 100 per cent in comparison to the pre-pandemic period of FY20.”
While premium segment has been growing in double digits, the mass segment in the consumer durables sector has seen a degrowth compared to last year as per some industry estimates. Nandi stated that subdued demand for the mass segment was visible during the festival season due to inflationary pressures. “Post the festival season, too, it is very clear that demand for the mass segment has not improved as consumers seem to be postponing purchases. But we do expect the mass segment consumption to see an uptick when the summer temperatures start picking up again,” he added.