Monsoon deficit in various regions, however, remains a concern
Appliances and consumer durable manufacturers in India are expecting up to 35 per cent sales growth this festive season. Factors such as increasing demand for premium products, post-covid economic recovery and price hikes are contributing to such expectations across categories. To attract customers, industry players are giving a final touch to incentives like extended warranties and easy EMIs while also investing in promotional activities. However, some companies are “cautiously optimistic” about the sales of their entry-level mass products in smaller Indian towns.
It is interesting to note that the industry collects one-third of the overall annual sales value during the festive season, which starts from Onam and ends with Diwali. The total annual sales value across categories stands at around Rs 75,000 crore annually.
With the onset of this festive season, companies such as BSH Home Appliances, Godrej Appliances, Haier, LG, Panasonic, Sony, Samsung, Thomson, and Voltas look forward to better sales volume than the covid times and even pre-covid years. But this year, the fall in sales due to the monsoon deficit in some parts and the resultant mean inflation of 7-8 per cent, are the concerns for the majority of the industry.
Godrej Appliances business head and executive vice president Kamal Nandi said: “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.”
