Climate variability impacting performance of winter appliances

Mumbai, Dec 17

Climate variability is having a direct impact on the performance of winter appliances in the Indian market. Heaters and geysers, which generally witness a good demand between October and December, are the first to feel the effects of winter's late arrival. Demand reduction has been estimated to be as high as 10% for some regions and even up to 20% for northern cities. Nevertheless, whenever cold fronts come in, sales will also experience a huge jump, even by 25–30%, all within just a week, hence a very sudden and huge surge following a very long period of inactivity. This kind of sales pattern indeed complicates the whole industry’s forecasting and inventory planning. Along with it, the change of customer preferences is equally important.

Talking to Bizz Buzz, Tanuj Gupta, Director Sales & Marketing, Thermocool Home Appliances says, “The unpredictable nature of winter is making it difficult for customers to decide which appliance to buy or to go for those with year-round value.’

That's why the demand for hot-and-cold ACs, which can serve both summer and winter markets, has gone up to almost 50% in some urban areas. The energy-conscious buying behavior is also becoming more pronounced; rising electricity prices and heightened climate awareness among consumers are the main reasons why almost 60% of customers today prefer models with 5-star energy ratings or those with good insulation.

Another trend that is on the rise is the adoption of smart technology. The adoption of IoT-enabled geysers and precision-controlled heaters has increased by almost 20-25%, especially among the younger, urban households who want to monitor and manage their energy usage. Solar-assisted heating is also gaining popularity among environmentally conscious consumers in certain areas.

Climate variability is pushing us to adopt more flexible and data-intensive models. We, at Thermocool, are changing our production and supply chain planning on a daily basis in order to avoid both overstocking and stockouts while also diversifying our portfolio of energy-efficient, smart, and all-season appliances in response to the changing needs of Indian families.

Kalpesh Ramoliya, Founder and Chairman, Raj Cooling Systems says, “Climate change is a significant factor in the current scenario of winter-appliance sales in India, where the manufacturers need to completely revise their forecasting and demand planning strategies, as well as their market responses. With winters now being highly erratic, going from very warm to very cold, the once clear-cut seasonal sales patterns have changed greatly.” Instead of the gradual and steady rise in demand that the category was looking at, the market is now witnessing sharp and short-lived peaks due to the occurrence of very low temperatures.

This transition has made the scenario of winter-appliance consumption much more reactive. Customers are postponing purchases until the weather changes are absolutely clear, which results in a lot of last-minute buying concentrated within very short time periods. Demand in the northern states remains strong, but even here, the intensity and duration of demand are completely reliant on sudden climate changes. In the central, western, and southern parts of the country, sales fluctuate significantly from year to year, depending on the microclimate, which makes long-term planning more complicated.

Additionally, brands and retailers are directly impacted by such volatility in terms of sales. Sales curves of the past will be replaced by hyper-local weather intelligence for making inventory decisions. The supply chains must have the ability to quickly react to a regional cold snap while also avoiding excess products during an unexpectedly warm season. Changes in product lines are also coming up with compact, energy-efficient heaters and quick-heat solutions being among the consumer favorites in winter cycles, as they give consumers a practical and value-oriented option for shorter winter cycles. Global warming is now an important factor that can no longer be ignored, as it is directly influencing the winter-appliance market in India.

Saket Gaurav, Chairman & Managing Director, Elista & TeknoDome Group says, “Winter-appliance demand in India has become much harder to forecast in recent years. We now see extended warm spells through October and November, which pushes the buying window forward and naturally softens the early-season demand for heaters and geysers. But the moment a cold wave sets in — sometimes with only a few days’ notice — the market reacts sharply. Dealers often report sudden jumps in enquiries, and products like room-heaters and instant water heaters can sell out far more quickly than expected.”

This kind of event-driven behaviour is becoming the norm, and manufacturers have to be prepared for rapid shifts rather than a smooth seasonal curve.

Geysers still see fairly steady demand because many households use them well beyond winter, while heating appliances are now entirely dependent on how temperatures fluctuate. What we are observing, especially in urban markets, is a growing preference for smart and energy-efficient appliances — IoT-enabled geysers, dual-mode heaters and designs that offer quicker heating with lower electricity usage.

Tier-2 and Tier-3 towns remain a major opportunity, as awareness and affordability continue to rise. For companies, the focus has to be on agility: flexible inventory planning, quicker replenishment cycles and closer alignment with real-time weather patterns.

The bigger message is that winter is no longer a predictable season in India. It shifts year to year, and the appliance industry must build the ability to shift with it.