Manufacturers of household appliances and durable consumer goods are looking for sales growth of up to 35% this festive season due to growing demand for high-end products and price increases.
Some of the companies, however, are “cautiously optimistic” about sales of their entry-level mass products in the country’s outback.
Companies such as Panasonic, LG, Sony, Samsung, Haier, Godrej Appliances, Voltas, Thomson and BSH Home Appliances expect this festive sale, which began with the appearance of Onam in the south, to be better than last year and even crosses pre-Covid sales volume.
The festive season, which begins at Onam and covers Durga Puja and ends with Diwali, contributes around one-third of the overall annual sales value across all industry categories, which is estimated at around Rs 75,000 crore.
Manufacturers are finalizing programs such as extended warranties, easy EMIs, and investing in promotional activities to attract customers, but are also concerned about entry-level mass product sales as small-town consumers still hold back their wallets on discretionary purchases.
The industry is concerned about any possible impact on sales due to the monsoon rain deficit in parts of the country and the average price hike of 7-8% it has taken this financial year.
“Setting festive targets for the country will depend on how the monsoons play out overall and general consumer sentiment. We are cautiously optimistic on the mass segment, but the premium segment should continue to do very well also in parties and will be the focus of all categories,” said Kamal Nandi, Chief Commercial Officer and Executive Vice President of Godrej Appliances.
Panasonic Life Solutions India President Manish Sharma, who expects double-digit growth this festive season, helped by its smart air conditioners, big screen TVs and home appliance category, said today’s consumers ‘today have become aware of their choices and that the value proposition and premium devices take precedence in their buying decisions.
Asked about the monsoon rain deficit and sales in small towns, Sharma said, “We believe this may have an intermediate impact on sales. However, we hope to see this change after Navratra as Tier III markets and beyond eagerly await the festive offers as they yearn to buy new appliances.”
Comparing with last year’s holiday season sales, he said, “I think value growth will outpace volume growth this season. We expect to register an overall growth of 10% compared to last year.
Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Eric Braganza said he expects consumer demand to increase and sees an upward trend in sales this festival season.
“Also, as everything is thankfully returning to normal, this should lead to a positive change in consumer purchases. It also depends on the state of the economy. At this point, we can be cautiously optimistic,” said he declared. said.
Sony India Managing Director Sunil Nayyar said his business is already at a peak for the festive season, with sales of Onam and Ganesh Chaturthi beating expectations.
“We are confident that this favorable growth momentum will continue through the holiday season thanks to our technologically advanced products, our attractive promotional offers for consumers and our easy-to-spend financing programs”, a- he declared.
Haier Appliances India President Satish NS said, “The industry would grow overall by 30-35% in value this festive season and around 12-14% in value.”
However, he also added that sales of entry-level products were disrupted but mid-range and high-end products would have no impact. Entry-level customers are mainly first-time buyers of low-supply products such as 32-inch LED TVs and semi-automatic washing machines, mainly from small towns.
LG India will launch a new product line based on Indian ideas during the festive season, aiming to further strengthen its market position across all product categories. When asked LG India Vice President – Home Appliances and Air Conditioners – Deepak Bansal said, “We are confident to cross the pre-pandemic numbers.”
However, he also acknowledged inflationary pressures and said the appreciation of the US dollar was a concern.
“We are monitoring the situation closely. It was not wrong to say that growth will be a source of value,” Bansal added.
Mohandeep Singh, Samsung India’s Senior Vice President, Consumer Electronics Business, said the company had a strong start to the festive season during Onam and Ganesh Chaturthi, where it witnessed huge demand for big-screen TVs. 55 inches and over, 300 liters and over. refrigerators and washing machines over 8 kg.
“We are confident that this growing demand will further intensify during Durga Puja and Diwali, especially for our premium products, not only from metropolitan cities, but even Tier II and Tier III markets,” he said. he declares.
Avneet Singh Marwah, CEO of SPPL and exclusive licensee of the Thomson brand in India, said this festive season he expects a huge boost in sales as his company offers one of the best prices in the past three years.
“Along with that, we are launching Qled with Google tv. For the first time, we will launch GTV before Chinese phone brands,” he said.
Cooling maker and Tata Group company Voltas said it expects festive demand to be at the same pre-pandemic level and demand will be driven by replacement, upgrade of home and the need for products with advanced features, said its CEO Pradeep Bakshi.
Managing Director and CEO of BSH Home Appliances (India and SAARC), Neeraj Bahl, said the company is eyeing double-digit growth this festive season and has designed consumer-centric offerings.
“We have planned our local production and import supplies well in advance, so we are optimistic that we can meet the high demand this holiday,” he said.
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