At the onset of the festival season, the demand for consumer durables has increased in tier-2 cities across the country. Companies are now offering personalised premium products with special offers to meet consumer needs.

The demand for white goods in tier-2 is now twice the demand witnessed in tier-1 cities, as per a report on consumer insight by Justdial Consumer Insights.

As per the report, the surge in demand for consumer durable goods was led by Chandigarh, Jaipur, Lucknow, Ludhiana, Agra, Surat, Varanasi, Vadodara, Patna, and Ranchi.

“The growth is driven by increasing internet penetration, rapid acceptance of online platforms and normalisation of consumption behaviour post pandemic,” said Prasun Kumar, Chief Marketing Officer, Justdial.

Surging demand

The demand for smart televisions in tier-2 cities was 2.6 times that of tier-1 cities, and the searches for microwaves in tier-2 remained 50 per cent higher than in tier-1 cities, according to the report. At a pan-India level, demand for smartphones and air conditioners contributed to almost 75 per cent on the back of a 10 per cent year-on-year growth.

Brands catering to urban and rural areas also witnessed a spike in demand during the festive season because of consumers planning home upgrades with latest technology features.

“The demand from the smaller towns comes from customers who are navigating work and household, through brand shops and online availability of products on our platforms and e-commerce stores are driving easy access for semi-urban towns. We are easing customers’ buying by offering special cashback offers of up to 15 per cent, a five year comprehensive warranty, exchange offers and financing options,” said Pradeep Bakshi, Managing Director and Chief Executive Officer, Voltas Ltd.

Premium products

Consumer preferences for premium products are increasing steadily with robust uptake in demand seen as the festive season dawns.

“We have been witnessing an upgrade trend across markets including tier II and III markets for our premium products. We saw two times growth in premium TVs and 350-liter and above refrigerators and three times growth in demand for our soundbars in Onam,” said Mohandeep Singh, Senior Vice President, Consumer Electronics Business, Samsung India.

“We have launched Indian insight based products like wearable air purifier, AI DD Washing Machine and dual inverter air conditioner and are witnessing good traction for these products as people are looking forward to upgrade to latest technology products in consumer durables,” said Deepak Bansal, Vice President, Home Appliances & Air Conditioners, LG Electronics India.  

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