Despite several decades of refrigerators in India, the penetration of refrigerators in India is still low at ~30 percent. Compare this to the penetration level in China, where it is more than 90 percent. Regardless of the slump in the market, we have achieved a growth rate of 10.2 percent over the last year for refrigerator category, witnessing a growth rate twice that of the industry. The revision of GST rates for refrigerators from 28 percent to 18 percent in the month of July was a great relief. With evolving lifestyles, increase of the number of women in the workforce, and rising temperatures, a refrigerator is more of a necessity than a luxury today. The GST revision helped in making it more affordable, leading to upsurge in sales. Our current market share for the category stands at 14 percent.
In line with the climate change debate happening around the world, 18 of the 19 hottest summers have been after 2001. This has led to progressively hotter summers, year after year. Given the climatic conditions in India, the soaring temperatures are likely to drive demand for all cooling products, including refrigerators, in 2019 even though its penetration remains low. Delayed summer season is usually followed by a harsh weather and high temperatures. With our recent launch of 32 new models for expanding the portfolio of refrigerator category, bulk of which belong to the premium frost-free segment, we are upbeat this year.
- India is the fastest-growing economy. The consumption growth in India can be attributed to the gradual increase of the per capita income and rise in millennial affluence, which is not limited to just the metros.
- Moreover, increase in the female participation in the workforce along with urbanization has led to the emergence of a time-starved consumer group looking for appliances to reduce efforts.
- A growing trend among Indian consumers to upgrade to branded products is observed, fueled by increased awareness about global trends, quest for better products, and focus on healthier living.
- Aspirations are fast converging across urban and rural India, and growing digital penetration leading to better access is transforming the intent into actual spend.
- Increased penetration of refrigerators in Tier-II and Tier-III cities.