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AC Prices Will Not Rise Next Summer; But Refrigerators Is Another Story

While Air Conditioner prices usually witness a dip in winters followed by a hike in summers, the coming year may not follow the trend. With one of the leading consumer durables firm Samsung planning to enter the AC segment again, the prices are expected to remain low in the upcoming summers. “RAC pricing will remain under pressure in the upcoming summer season as well due to Samsung’s plans to revive its RAC business,” Emkay Global said in a note on Thursday. The AC prices have been stable to marginally lower this year. But, two companies — Lloyd and Haier — increased their prices by 10% and 9% respectively due to new launch and new SKUs. The air conditioner category has reported good sales in the first half of current fiscal and later due to the festive season.

Among other consumer durables, refrigerators and washing machine demand moderated in the festival season after good innings in the summers. “The refrigerator category witnessed higher competition from Volt-Bek and Haier, especially in frost-free refrigerators,” Emkay Global said. These two companies have been on an aggressive pricing strategy, and Haier even implemented a price cut of 15% on-month basis and Volt-Bek cut prices by 5%

Samsung, Whirlpool refrigerators got costlier
On the other hand, Samsung, which is the market leader in frost-free refrigerators, has marginally increased the prices of its most popular frost-free SKU (253L) by 2%. Rival refrigerator manufacturer Whirlpool has also increased the prices of its model in the similar range.

In washing machines, festive sales were driven by fully automatic machines and the players also increased the prices by 3% on-month. “Price increase was seen in the front-load category in November 19, with IFB taking the lead,” the report said. Other players such as Haier and Samsung also incorporated a price hike on their 6 kg and 6.5 kg washing machines variants by 6% and 4% on-month, respectively. Several other players kept their prices largely flat or increased only marginally. According to the same report, companies rolled back the festival discounts after the end of festival season and the hike in several categories could be a result of the same. Financial Express

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