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Samsung India is eyeing a strong double-digit growth during the festival season for its consumer durables portfolio backed by pent-up demand and premiumisation trends. The double-digit growth target comes despite the inflationary and supply-chain related pressures being faced by the consumer durable sector,
The company said it already saw strong growth momentum for its premium products portfolio in August marked by festivals like Onam and Raksha Bandhan.
Raju Pullan, Senior Vice-President, Consumer Electronics Business, Samsung India, said, “In 2020, we saw strong pent-up demand especially during the festival season and we saw this momentum continue into the first quarter of 2021. While the pent-up demand was a surprise last year, this year we have been ahead of the curve. Right from the start of the year, we focused on strong supply chain planning and our pipeline inventory levels are in-line with the growth expected in consumer demand during the festival season.”
Market share
The company said it has strengthened its position in TV and refrigerators segment with market share of 31.5 per cent and 35.8 per cent respectively in August.
“The consumer sentiment is even better this festival season compared to last and we are targeting a robust growth of 30 per cent across the consumer electronics and appliance portfolio. We are expecting 65 per cent growth in the premium segment backed by a slew of new launches,” he said.
Last year, the tier-2 and tier-3 markets had done better in terms of demand trends compared to metros which saw more intense impact of the pandemic. “With vaccination pace being ramped up and easing of restrictions on malls and large format retail, this year, we are seeing even metro and bigger cities doing well,” Pullan said.
Factors such as low penetration of various consumer durable categories and good monsoon, will also support strong demand trends in the smaller towns and rural region, he added.
“As consumers work from home, premiumisation has gained strong traction during the pandemic times. In August, we saw 63 per cent growth in the QLED TV segment. Side-by-side refrigerators portfolio witnessed an almost 100 per cent growth and front-load washing machines segment clocked 50 per cent growth,” Pullan added.
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