Consumer durable and consumer electronics brands are expecting sales to increase by 30-40 per cent during the festive season starting this month in the run up to Diwali in November. The increase in sales will come mostly from premium and smart products. “During the festive season, we are expecting around a 40 per cent surge in sales as compared to last year. Usually, 35 per cent of our annual sales happen during this period,” Ravi Saxena, CEO & Founder, Wonderchef, told FinancialExpres.com.
For Godrej Appliances, 28-30 per cent of the annual sales come from the festive season. “This year in Q2 FY 22-23 during Onam festivities we are targeting more than 30 per cent growth over last year as well as pre-pandemic. The festive target setting for the rest of the country will depend on how the monsoons fare overall and the consumer sentiment over the next month or so,” said Kamal Nandi, Business Head and Executive Vice President at Godrej Appliances. “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 season,” he added.
“We are optimistic that we will witness a buoyancy in demand during the upcoming festive season by more than 50 per cent,” said Rakesh Kaul, CEO & Whole Time Director, Hindware Home Innovation. Hindware had witnessed a dip in demand after the festive season last year. The brand has taken ‘minimal price hike so as to not burden the end consumer and enable better demand’.
Ravindra Singh Negi, Chief Operating Officer – Consumer Products, Bajaj Electricals, said, “We’re optimistic about the growth of business this festive season, but a lot depends on the overall macroeconomic factors and appetite for consumer appliances in the coming months. With the government taking necessary steps to control inflation and revive the economy, we believe this festive season will see good demand for consumer electronics across all the categories.”
Premium and smart products to drive festive sales surge
Indian consumers have grown an affinity for premium and smart products when it comes to home appliances. The sales surge this festive season will come from these products. Brands in the segment said that high-end washing machines, premium & bigger televisions, air conditioners and microwaves with smart features will drive sales. “In the upcoming festive season, we are planning to come up with some innovative tech enabled products for Indian homes which will be unveiled shortly. These products will be priced from mid to high end of the spectrum,” said Ravi Saxena of WonderChef.
Brands are also launching smart products to cater to the demand during the festive months. “This year, we have already started ramping up the inventories to prepare for the festive season. We expect at least a 5X spike in sales. We are launching three new smart products in the coming months – smart heater, smart geyser and smart door lock, and we are betting on these products for a sales surge,” said Pranesh Chaudhary, Co-Founder & CEO, Zunpulse.
Kamal Nandi of Godrej Appliances too maintained that the premium segments will continue to drive greater growth. “Premium segment mix in business has improved by more than 50 per cent compared to FY 19-20. This has come at the back of successful launches across premium frost-free refrigerators, washing machines and ACs,” he said.
Festive offers, deals, discounts to facilitate more sales
Besides new launches for the festive months, brands are also floating a vast spectrum of offers to facilitate better sales. Pallavi Singh, Senior Vice President, Super Plastronics Pvt Ltd (SPPL), Brand Licensee of White Westinghouse in India, said, “There will be handsome deals across categories and products will be made cheaper to almost 20 per cent of their original pricing.”
Gurmeet Singh, CMD, Johnson Controls-Hitachi Air Conditioning India, said, “We have curated exciting festive offers on air conditioners as well as refrigerators to match consumer sentiments and expectations. The company has introduced easy finance offers such as No cost EMI and EMI starting from Rs 2599 on select models. We are also offering extended warranty offers on PCB/controller as well as compressor on our entire Inverter technology based Split and Window ACs. We have a slew of offers on our premium and innovative range of refrigerators.”
Voltas too has launched a slew of offers besides availability through 25,000 touchpoints. “Moreover, we have launched our own web store, which is a one-stop destination for purchasing all Voltas and Voltas Beko products. We will also use an omnichannel approach with a mix of digital, radio, print and OTT to engage with our customers during this time of the year,” a company spokesperson said.
Preparation for festive season
Consumer durable brands have prepped up for the season with increased inventory, logistics, etc. “We are preparing for the surge in sales by keeping stocks ready. Our internal demand projections have helped us set reasonable growth targets for which we are aligning our production and logistics. We are also opening 4 new warehouses this year to cater to our direct to consumer sales,” said Ravi Saxena. Financial Express