The great Indian shopping season — which kicks off with Onam in Kerala is off to a tepid start with consumer goods makers running never before offers — from easy financing options to extended warranty periods — to lure buyers.
Sample this: LG, for instance, is offering a 32 inch LED TV — originally priced at Rs 17,990 for Rs 14,990 or 20% cheaper than before.
“Special prices are offered for select TV models and we are offering EMI-based payment options to incentivise buying. We expect a 28% growth in sale compared to 2018 (a washout year when Kerala was marooned with flood waters), spurred by the sale of OLED TV and other premium products,” said P Sudheer senior regional business head- LG Electronics India.
Gearing up for the upcoming festive season starting from Onam, brands are offering discounts, EMI options to help accelerate purchase amid slowdown.
High-end televisions, which saw a slump, are now seeing extended warranty offers to attract customers towards making high ticket purchases along with discounts. Jerry Mathew, MD, WhiteMart, adds that the sale was 30% lower before the onset of the festive season discounts, but there is a small revival.
“August saw a complete slowdown in sale of TVs with almost 60% drop and with extended warranty, customers are coming out to buy and reduced costs and extended warranty schemes are doing the trick. With TVs more prone to faults, an extended warranty is attracting buyers,” he said.
Panasonic India is coupling cashback offers upto 10% offers and extended warranty on TV models.
“While TVs saw a slump, we expect that with the upcoming festive season coupled with positive consumer sentiments will bring in revival,” said Manish Sharma, president and CEO, Panasonic India and South Asia.
While some brands eye growth in sale, the rest are say slowdown blues would still affect the sale.
AC manufacturer BlueStar added that even as discounts upto 10% are on, sales are down 20% than forecast.
“The impact of slowdown is felt and we are trying to make products more affordable,” said B Thyagarajan, MD, BlueStar.
Kamal Nandi, executive vice president and business head, Godrej Appliances, added that partially owing to rains and because of the slowdown, early trends show just a marginal increase compared to 2018.
“Since it is mainly because of liquidity crunch, our focus is mainly on easy financing options to help drive sales, rather than discounts or other offers,” he added.
Kerala-based retailers add that the sale would be along the lines of the performance in 2018, despite lower impact of floods. Nishad MA, director, LuLu Group International adds that lucrative offers initiated by brands are spurring on people to make purchases. “The discounts are higher by 10-15% compared to 2017 and in the last 3-4 days, the slowdown was certainly revived,” he added.―Times of India