Economy

Consumers increasingly turn to premium products in pandemic times

Meenakshi Verma Ambwani New Delhi | Updated on September 20, 2021

Fully-automatic front loading washing machines accounted for 31% of category sales during January-May 2021 period   -  S RAMESH KURUP

Products such as fully-automatic front-load washing machines, frost-free refrigerators have been witnessing an uptick in sales

In pandemic times, consumers have been increasingly turning to premium appliances to seek convenience and comfort. Products such as fully-automatic front-load washing machines, frost-free refrigerators and bigger sized TVs have been witnessing an uptick in sales, strengthening the premiumisation trend in the country.

According to market intelligence firm Gfk, fully-automatic front loading washing machines accounted for 31 per cent of the category sales during the January-May period in 2021 in terms of value. In comparison, the share of the front-load washing machines was pegged at about 25 per cent in January-May 2019 period. Also, higher capacity washing machines of over 7 kg accounted for 70 per cent of all sales during this period in 2021, up from 58 per cent in the corresponding period in 2019.

Refrigerator sales

Meanwhile, the share of 351 litre plus-sized refrigerators, in value terms, stood at 16 per cent of the category sales in the January-May period this year compared to 10 per cent in the same period in 2019. Frost-free segment contributed 44 per cent to the total category sales during this period compared to 36 per cent in the corresponding period in 2019.

Nikhil Mathur, Managing Director – India, GfK said the pandemic has brought some structural shifts in consumer lifestyle, behaviour and attitude. “Consumers are opting for value proposition products resulting in a significant uptick in demand for premium products offering comfort, convenience, connectivity, and safety in their daily lives. Penetration of appliances and consumer electronics in tier 2 and tier 3 has also increased owing to infrastructural growth,” he added.

Sales of TVs with a screen size of 43 inches and above increased from 22 per cent in January-May period in 2019 to 33 per cent in January-May period this year in value terms. Contribution of 55-inch and larger televisions has also grown during this period with the premiumisation trend being driven by smart and ultra-high-definition TVs.

“As consumers do more and more tasks themselves, the need is for products that are bigger, better and faster. Premiumisation is a trend we expect to see well into 20221,” Mathur added.

Published on September 19, 2021

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