Appliances industry upbeat on festive demand
Companies are looking for up to 35% growth in sales on increasing demand for premium products and price hikes
New Delhi: Appliances and consumer durable makers are looking for up to 35 per cent growth in sales during this festive season on increasing demand for premium products and price hikes.
Some of the companies, however, are "cautiously optimistic" about the sales of their entry-level mass products in the country's hinterlands. Companies such as Panasonic, LG, Sony, Samsung, Haier, Godrej Appliances, Voltas, Thomson and BSH Home Appliances expect this festive sale, which started with the onset of Onam in the south, to be better than the last year and even cross the pre-Covid sales volume. The festive season, which starts from Onam and covers Durga Puja and ends with Diwali, contributes around one-third of the overall annual sales value across categories of the industry, which is estimated to be around Rs 75,000 crore.
Makers are finalising schemes such as extended warranties, easy EMIs and investing in promotional activities to attract customers, but are worried also over sales of entry-level mass products as consumers from smaller towns are still holding their purses on discretionary purchases. The industry is concerned about any possible impact on sales due to monsoon rain deficit in some parts of the country and the average price hike of 7-8 per cent, which it has taken this fiscal.
