DAIKIN

E-comm Gives Boost To TV, Fridge Sales

Sales of white goods like television, air-conditioners and microwave ovens got a boost on online platforms last year with online accounting for 9-20% of the overall sales of whitegoods manufacturers.

This change in consumer behaviors has come in as a surprise as none of the big companies thought consumers would buy a TV or washing machine without the touch-and-feel experience.

The ET citing data from online sales tracker GfK said online sales accounted for 20% of flat television sales volume in 2018, 30% convection microwave ovens, 10% of washing machines and 9% air-conditioners. For refrigerators, e-commerce accounted for around 5% of total sales. Online sales account for 35% of total Indian sales volume of smartphones, as per GfK.

Meanwhile, the ET report citing industry executives said, online sales volume of white goods grew 50-60% last year over 2017.

“Online channel has registered significant growth in 2018 across categories in this sector and is now being viewed by players as one of the important channels to operate in the market,” Nikhil Mathur, managing director – India at GfK, told the business daily.

“Key growth drivers for this industry are increased affordability, focus on energy efficient products, increasing digital penetration and rise in aspiration,” he added.

Industry executives told ET the contribution of online has almost doubled over 2017, led by the price-aggressive brands like Xiaomi, TCL, BPL, Vu and Thomson in television while brands like Samsung, Bosch and Siemens drove online appliance sales.

Online exclusive BPL India’s COO Manmohan Ganesh said the top e-commerce marketplaces have managed to gain consumer confidence whereby customers have shed the inhibition to buy electronics online. “They have also invested heavily on marketing unlike any offline retailer. However, the inhibitions are still there in smaller towns,” he said.―Times Now

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