In what seems to be a huge relief for consumers before the much awaited festive season, prices of television and refrigerators will not be hiked again anytime soon.
It may be noted that consumer electronic goods sellers had already hiked prices of TVs and refrigerators by almost 5 percent last month when the rupee was falling on a daily basis. However, it seems that the consumer durables industry now faces a massive challenge to generate demand during the festive season in view of last month’s price hike.
The flood disaster in Kerala is another reason behind the low sales record during Onam, which essentially marks the starting of the festive season, explained three industry executives to the publication.
Further hikes to be absorbed
The entire white goods industry in the country has decided to absorb any further depreciation in the rupee against the greenback until it weakens to 75 or beyond.
However, chances of such an occurrence are low as the Reserve Bank of India along with the government is proactively working to defend the rupee from falling to below the 73-mark.
In addition, industry experts and executives have clearly mentioned that the depreciation of the rupee will not impact prices of television and refrigerator during the festive season; however, there may be a marginal increase in other imported white goods.
Godrej and Sony had earlier confirmed that the industry would absorb any further depreciation in the value of the rupee to safeguard the sentiments of customers before the festive season.
Godrej Appliances business head Kamal Nandi said: “We are keeping an eye. However, since the components and products are already there, we expect no further changes in pricing till Diwali.” Even Panasonic CEO Manish Sharma said that the company is trying to hold cost impact arising from the depreciation of the rupee, at least during the festive season.
“However, if further depreciation of rupee happens beyond 73 against US dollar, we will not be in a position to absorb the impact. The rising panel prices over the last few months have been adding to cost pressures too,” he told ET. — Times NowNews