With just days away from Diwali and the ongoing festive season which typically starts from Raksha Bandhan and goes on till Bhaidooj, consumer durable companies are anticipating growth in double-digits, between 30-50 per cent this year. “With markets picking up this year and a good monsoon, we have noticed an uptick in sales for the appliances industry. For Godrej Appliances, we have seen an impressive growth of close to 40 per cent since the start of Onam in September. October, driven by Durga Puja and the upcoming Diwali celebrations has delivered close to a 45 per cent surge so far. As we approach Diwali, we are driving 50 per cent growth, thanks to our robust product lineup, exciting offers, and the increasing demand for premium and convenience forward appliances,” said Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances.
Even as the industry witnessed a sluggish first half of the year, the festive season is anticipated to bring recovery in sales. There is optimism that pent-up demand from H1, coupled with the festive shopping period, will offset earlier slowdowns. Naveen Malpani, Partner, Grant Thornton Bharat, said, “Consumer durable companies are anticipating a significant surge in sales during this festive season. Most companies are anticipating as much as 40 per cent YoY growth in festive sales this year, fueled by robust consumer demand and strategic promotional activities. Typically, the festive period can contribute up to 30-35 per cent of their annual sales, making it a pivotal time for revenue growth.”
While maintaining that with brands making efforts, this festive season will see industry growth in comparison to last year, Ravi Saxena, Co-Founder and CEO, Wonderchef, said, “In the domestic appliances industry, the four festive months of July-Oct account for almost 50 per cent of yearly sales. This means that the average sales in these months are twice that of regular months. We expect a similar surge this year too and the green shoots are already visible.” He also added that the brand is growing by 20-25 per cent YoY every quarter for the last 3 years.
Panasonic Life Solutions India too witnessed more than 50 per cent increase in AC sales and 30 per cent rise in refrigerators sales this summer season. Going forward as well, Sandeep Sehgal, Director and Head of Sales, Consumer Division, Panasonic Life Solutions India, said, “We anticipate a promising double-digit growth this festive season, with early indicators and dealer orders pointing towards significant growth compared to last year. The festive period, starting from Onam till the end of the year, traditionally contributes a considerable portion of our annual sales.” Haier Appliances too anticipates a 35 per cent year-over-year growth. Orient Electric is looking at clocking a high double-digit growth across product segments. Jitendra Agrawal, CEO, Lighting and Consumer Durables, Surya Roshni Ltd, added, “We are seeing very strong positive traction as we enter the festive season which usually runs between September and November. Historically speaking, this quarter generates close to 30 per cent of our total annual sales, clearly a reflection of high demand by the customer during the festive periods.”
What’s new and what’s in demand this festive season?
This festive season, like the past 2-3 years, is also being driven by premium and feature-led products with consumers looking to upgrade their appliances and brands in the segment are taking note. While launching gift packs for festivities, consumer durable companies are betting on premium and smart technology led products. Sandeep Sehgal from Panasonic Life Solutions, said, “Our focus has been to provide products that enable a smart home ecosystem delivering a seamless experience of connectedness, comfort and convenience along with energy efficient appliances. The smart home category, including IoT-enabled devices, has been showing excellent growth potential. The trend of premiumisation is indeed continuing to drive growth.”
Wonderchef, while launching special gift packs for the season priced between Rs 999 and Rs 2,999, is also putting its bet on premium and smart appliances. Ravi Saxena said, “We are focusing on premiumisation with our smart appliances such as Coffee Machines, Nutripot, Roti Magic and Chef Magic.”
Anika Agarwal, Chief Marketing and Customer Experience Officer, Orient Electric, said, “We anticipate heightened demand for our premium products given the continued consumer inclination towards high-quality, feature-led products. In line with this, we are offering a complete range of BLDC Pro fans with new-age designs and smart features such as IoT connectivity, reverse rotation, and integrated lighting. In Lighting, we have introduced many new value-added products in the consumer luminaires segment, such as COB lights, panels, and downlighters.”
Driven by rapid technological advancements and a richer viewing experience, Videotex noted that consumers today have shortened the cycle for TV upgradation from every 8-9 years to just 4-5 years. Arjun Bajaj, Director, Videotex, said, “We’ve observed a marked shift toward premium products, especially in the 43-75 inch category. The demand for 4K TVs has surged by 50-100 per cent, with larger screens becoming the new standard. There’s been a clear trend away from smaller 32-inch models toward sizes like 43 and 55 inches, fuelled by the rise of OTT platforms and the increased accessibility of affordable broadband and internet packages.”
Parag Kulkarni, Senior Vice President-International and President, AO Smith India, also agreed, “While consumer demand is a significant consideration, factors such as rapid urbanization, growth in the real estate sector, rising disposable income, premiumization of the products, shifting consumer preferences and improved living standards, combined with the surge in need for household comfort, are some trends that are likely to push demand. An increasing number of modern consumers are being drawn in by intelligent, feature-rich appliances that offer excellent value, comfort, and convenience.”
Grant Thornton Bharat noted that premium and feature-rich products have now become a key growth driver in the sector, with consumers showing a preference for smart, connected devices and energy-efficient models. This demand for innovation, it added, is pushing companies to focus on premium offerings to differentiate themselves in a competitive market. “Large companies have witnessed over 35-40 per cent of their sales coming from premium products. Furthermore, the shift towards eco-friendly, high-performance products has bolstered the premium segment for some companies,” said Naveen Malpani.
And now, what’s drawing the consumers to these products during the ongoing festive season, good deals, enhanced distribution and an aggressive marketing strategy. NS Satish, President, Haier Appliances India, said, “As the festive season approaches, Haier India is focused on maximizing sales and achieving strong market conversions by making our premium, innovative offerings more accessible and affordable. We are committed to delivering exceptional value and unmatched customer experiences through strategic promotions, engaging campaigns, and extended warranties for added peace of mind. By aligning our marketing efforts with the festive spirit, we aim to connect with our audience more meaningfully.”
The back-end preparations
Consumer durable companies are all set and have prepped up for the season with increased inventory, logistics, supply chain, etc. Companies are extending their presence beyond traditional channels, including dealers in tier 2 and tier 3 markets, as well as organized retail partners, along with presence across leading e-commerce platforms.
Jitendra Agrawal from Surya Roshni, said, “We are fully prepared to handle a potential surge in orders. Our logistics and supply chain operations are optimized to ensure smooth execution during high-demand periods like the festive season. We have put the necessary systems in place to meet any spikes in demand, ensuring timely product availability across all markets. Our extensive distribution network, which covers more than 300,000 retail points, is particularly strong in the semi-urban and rural areas. We are well-positioned to capture the growth in these markets, where demand for lighting and consumer durable products is rising steadily.”
While the surge in demand for consumer durable companies is expected to be led by urban markets driven by higher disposable incomes, stronger preference for premium products, and faster adoption of technology, the rural markets are also catching up. Per insights from Grant Thornton Bharat, with companies also focusing on strong distribution networks and entry-level and mid-tier products that appeal to price-sensitive rural consumers, there has been a growth in demand for essential appliances and electrical products, particularly in Tier-3 and Tier-4 markets. Sandeep Sehgal from Panasonic Life Solutions, said, “While metro cities traditionally have been driving sales, tier II & III places are emerging as promising markets with growing consumer aspirations and purchasing power. We expect this trend to prevail throughout this year and coming years.”
Any price correction in picture?
Even as companies are staring at rising input costs as well as higher container costs, the industry players said that there will be no price correction right now and the focus remains on delivering value to consumers during the festive season. Ravi Saxena from Wonderchef, said, “Festive pricing is now a given, driven by various e-commerce special days and discount melas in retail chains. This will happen but it’s a temporary phenomenon that comes in bursts during the season. It doesn’t tantamount to price correction. There is continued pressure on commodity prices as well as container costs.”
Grant Thornton Bharat’s Naveen Malpani said that rising input costs and the continued focus on premiumization make price cuts less likely. “Companies are focusing on maintaining margins, and any price adjustments would be minimal, focused primarily on older models or entry-level products. Also, some global unrest might impact the supply chain for the companies and therefore, the opportunity for reducing prices may be restricted,” he added.
From: financialexpress
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