Appliances and consumer durable makers are looking for up to 35 per cent growth in sales during this festive season on increasing demand for premium products and price hikes.
Some of the companies, however, are "cautiously optimistic" about the sales of their entry-level mass products in the country's hinterlands.
Companies such as Panasonic, LG, Sony, Samsung, Haier, Godrej Appliances, Voltas, Thomson and BSH Home Appliances expect this festive sale, which started with the onset of Onam in the south, to be better than the last year and even cross the pre-Covid sales volume.
The festive season, which starts from Onam and covers Durga Puja and ends with Diwali, contributes around one-third of the overall annual sales value across categories of the industry, which is estimated to be around ₹75,000 crore.
The industry is concerned about any possible impact on sales due to monsoon rain deficit in some parts of the country and the average price hike of 7-8 per cent, which it has taken this fiscal.
"The festive target setting for the country will depend on how the monsoons fare overall and the consumer sentiment overall. We are cautiously optimistic as far as the mass segment is concerned but the premium segment is expected to continue doing very well in festive as well and will form the focus across categories," said Godrej Appliances business head and executive vice president Kamal Nandi.
Panasonic Life Solutions India chairman Manish Sharma, who expects double-digit growth this festive season , said consumers today have become conscious of their choices and value-proposition and premium appliances are taking precedence in their purchase decisions.
When asked about the monsoon rain deficit and sales in smaller towns, Sharma said, “We believe this might have an interim impact on sales. However, we are hoping to see this change post-Navratra as Tier III markets and beyond look forward to the festive offers as they aspire to purchase new home appliances. I believe value growth will surpass volume growth this season. We expect to record a 10 per cent overall growth when compared to last year."
Haier Appliances India president Satish N S said: "The industry would have an overall growth of 30-35 per cent in value this festive season and around 12 to 14 per cent by value."
However, he also added that the sales of the entry-level products have been disturbed but the mid and high-end products would have no impact. The entry-level customers are mostly first-time buyers of low-offering products such as 32-inch LED TVs and semi-automatic washing machines, mostly from small towns.
LG India will launch a new range of products based on Indian insights during the festive season aiming to further strengthen its market position across product categories. When asked LG India VP- Home Appliances & Air Conditioners - Deepak Bansal said: "We are confident to cross pre-pandemic numbers."
However, he also acknowledged inflationary pressures and said the appreciation of the US dollar is a concern. "We are closely monitoring the situation. It was not wrong to say that growth will be value lead," Bansal added.