The Diwali festive season saw demand growth for white goods and home appliances in the range of 20-35%, said manufacturers and large retailers.
“We are witnessing a robust growth across categories. The overall growth is around 35%. Especially for premium products, the growth is very impressive,” said Vijay Babu, vice-president — Home Appliances, LG Electronics India.
“In washing machines, there has been a very good sale-out for high capacity machines of 7-, 8-, 9-kg and above both in front and top loading. Similarly, in refrigerators, we are seeing good traction for 330 litres and above,” he said.
In the premium category, the growth was above 40%. “Strong product portfolio, backed by good offers for consumers and attractive consumer financing options are some of the factors behind this growth.
In home appliances, we are targeting Rs. 5,000 crore turnover,” Mr. Babu added.
Godrej Appliances witnessed a subdued response this festive season, top executives said. However, they said sales picked up a few days ahead of Diwali. “Overall, we expect a singe digit growth of 5-7% for the industry over the same period last year,” Kamal Nandi, business head and executive vice president, Godrej Appliances, said. He said the metro markets had done better.
Premium items shine
“Some of the premium products, however, have shown good traction, especially our frost-free range and fully-automatic washing machines,” he added.
Retailers too reported handsome growth in volumes. Ritesh Ghosal, CMO, Croma, Infiniti Retail Ltd. said, “The festive season has been good, we have seen a growth of more than 20% this festive season compared to last year.”
“Appliances has been one of our fastest growing category with a growth rate of 27% recorded during this period. Refrigerators and washing machines have been the key drivers for the same. For TVs, we have seen a good surge in demand for large screen TVs, that is,43 inches and above,” he added.
Washing machines, refrigerators, 2-in-1 laptops, wearables have also done ‘pretty well’, he added.
Rajiv Malla, CEO, Malls, Runwal Developers said, “A higher consumption is being recorded for white goods at R City Mall since September. Our retail partners in the space of white goods have reported over 12% growth this season. There has been a high demand for electronics such as LED TVs, vertical door refrigerators, washing machines and microwaves during this festive season.”
“Basis the pattern observed in the previous years, we are hopeful that consumption will continue to grow over the next few months,” he said.
According to Mr. Ghosal of Croma, demand in this category was a function of consumer sentiment. “As consumer confidence has been declining, so has demand. July-August was the worst period with 15% decline in footfalls over the previous year. Starting September, footfalls have improved after the government made certain announcements in the area of credit, direct taxes,” he said.
He said by the time the festive season came around, banks were lining up with cashbacks and EMI schemes while brands reconciled to lower prices and retailers primed to make good the previous months’ lost opportunity. “It’s like three parties conspired together to make festive sales come good. It remains to be seen if the momentum holds though,” he added.―The Hindu