Television sets and appliances price may go up by almost 3 to 10 percent soon, as manufacturers consider raising sticker rates to offset rupee depreciation and customer duty hike on imported washing machines and refrigerators. Manufactures considered the price hike in October but postponed it to after the festive season.
Brands such as LG, Samsung and Sony have already withdrawn the subsidy of up to 10 percent given to retail channels which was further transferred to customers in form of discounts. Other manufacturers like Haier, Xiaomi, Siemens, Bosch etc. are also increasing the rates.
Business head at Godrej Appliances, Kamal Nandi was quoted in the report saying, ““The price hike undertaken in September by some brands is going to get implemented now since brands did not want to affect any price changes during the festive season, and also to provide some cushion to offline retailers to combat the huge online discounting.”
He further added that it is impossible to cushion the prices now since the margins are badly affected. Haier India President, Eric Braganza also stated the company has hike prices by up to 8 percent this weekend.
It is no secret that manufacturers offer sales support or subsidy to retailers during festive season which passes on to the customers in form of discounts but, according to industry experts, these subsidies have never as deep as 10 percent which was offered this year in order to cover the price hike in the coming month.
One of India’s leading chains, Great Eastern Retail director Pulkit Baid told that these brands withdrawing their sales support or subsidies might impact the demand adversely in the lean months.
It may be noted that in September, the central government doubled customs duties on refrigerators, washing machines up to 10 kg capacity, and air-conditioners to 20 percent. Duties were and also increased on compressors. This hike hit the margins badly which was further impacted by the depreciating rupee. — Times Now