Premium- to mid-priced consumer appliance segments are witnessing strong demand, with cautiousness visible at the entry-priced segment, according to early trends in the ongoing festival season. The overall white goods industry is expected to witness strong value growth on the back of affluent consumers upgrading to premium products, but volume growth may see some impact as first-time buyers cope with inflationary pressures.
Satish NS, President, Haier Appliances, said: “There is robust sellout for high-end and mid-end products, but there is definitely some signs of pressure visible at the entry-level priced segment, especially in rural markets. Overall, we are targeting 35-40 per cent value growth.”
Makers of consumer durable goods said retail trade partners are also stocking up more on appliances priced in the mid to premium segment and displaying cautiousness in stocking up on entry-level products. Senior executives said the overall industry is expected to see growth over pre-pandemic levels in terms of value.
Talking about industry trends, Kamal Nandi, Business Head and Executive Vice-President, Godrej Appliances, said: “Mass segment remains depressed, but the premium- and mid-level segments are doing very well. The overall mass segment may see marginal growth or even some de-growth. At the industry level, while there will be healthy value growth over pre-pandemic levels, we will need to see how volume growth shapes up.” He added that the company is targeting 50 per cent growth over last year in this festival season, with higher levels of growth expected in the premium segment.
Fully automatic top-load and front-load washing machines, higher capacity refrigerators and larger sized TVs are among the segments that are seeing a strong uptick in demand this festival season.
Late last month, Vishal Bhola, MD, Whirlpool of India, too, pointed out this dichotomy in the market. “The consumers in the mid and premium segments are buying higher capacity products and upgrading to premium products and seeking more features. At the entry level, consumers are being more watchful about their spending and seeking more value,” he said on the sidelines of a press briefing.