Buoyed by a good start with festivals in the southern markets, the appliances and consumer electronics industry expects around 18-20 per cent value-driven growth this festive season which is coinciding with the ICC Men’s Cricket World Cup.
The cricket World Cup tournament is coinciding with the festival season in India for the first time after 1987, and the industry expects the country’s most popular sport to act as a catalyst, leading to growth in sales of TV, especially with bigger screen sizes as well as audio products such as battery-powered party speakers, soundbars, wireless headphones and ear buds.
TV makers, including LG Electronic, Panasonic and Thomson, expect increased number of replacements of conventional and small-size TV screens with large-size smart TV panels above 55 inch screen size. Premium and ultra-premium ranges of QLED and OLED TVs are also expected to be in much demand during the World Cup from October 5 to November 19.
The industry expects overall sales growth of 18 to 20 per cent, and in continuation of the previous year a higher growth of over 30 per cent from premium products such as large screen TVs, higher capacity refrigerators and washing machines.
Like in earlier season, the industry is gearing up with offers and interest-free finance schemes to woo customers with new launches along with high-decibel 360 degree campaigns. However, there are also concerns about sales of value-based opening price point (OPP) mass segment products.
Godrej Appliances Business Head and Executive Vice President Kamal Nandi said again this festive season would be price-led, where the volume would be similar to last year but high-priced premium products would grow over 30 per cent.
“Mass segment will be under pressure, as we have been experiencing throughout this year right from Q1 because the inflationary trend is still continuing and as a result, there is pressure on the discretionary spends. Moreover, variation in monsoon, with some states not getting adequate ranis, could impact agricultural income. So, I think this both will play on the mass segment and therefore, we do not expect the mass segment really to do well,” Nandi told PTI.
The appliance and consumer electronics industry is expected to cross Rs 70,000 crore sales this year and the festive season sales, which start from Onam in the south and cover Ganesh Chaturthi, Durga Puja and Deepawali, contribute around 25-27 per cent.
Companies also expect pent-up demand for airconditioners which faced challenged due to weather-related uncertainties this summer.
“There is demand even during the monsoon as there has been lesser rainfall. Therefore, temperatures were high. We see that trend very clearly in the southern, northern and parts of western and eastern markets also. In the north temperatures are high and with with little rainfall, humidity levels are also high. So AC demand will be there,” he said.
