Consumers spent big bucks on premium products in 2022 despite inflationary pressures. From high-end smartphones and televisions to higher capacity refrigerators and air conditioners, premium products category grew up to 9 times faster than the entire segment in 2022, as per the latest data shared by GfK Market Intelligence Offline Sales Tracking. The data is for January-December 2022 compared to 2021.
When compared to 2021, the overall smartphone category saw 35 per cent value growth, the phones priced over ₹30,000 registered 94 per cent growth. Similarly, premium panel television sales (ultra-HD models with screens larger than 55 inches) registered 95 per cent value growth, while the entire television category clocked 11 per cent growth.
About the major domestic appliances such as refrigerators, air-conditioners, microwaves and washing machines, premium products growth was pegged at 45 per cent. The premium products include frost-free refrigerators of over 350 litres, 5-star air-conditioners above 1.5 ton, and washing machines above 7 kgs
The overall value growth for small domestic appliances, such as those used for food preparation, water purifiers, electric water heaters, and air conditioners was estimated at 37 per cent, but 54 per cent for the premium segment.
Nikhil Mathur, Managing Director – India at GfK, said, “Indian consumers are motivated by the value-led approach, in which product innovation, customer experience, and premium features will continue to drive sales for the premium category growth in 2023.”
Mathur said that in major domestic appliances, the replacement cycle for washing machines and refrigerators has reduced, as consumers moved towards upgradation in 2022
“It is important to understand that consumer confidence varies by age, income and market, with certain groups more optimistic about their future than others. This highlights the need for brands and retailers to personalise communications when targeting different demographics. For instance, millennials may be more open to a value-add strategy that nudges them into more premium categories,” Mathur added.