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With the festive season on us, manufacturers of consumer durables are anticipating higher sales over the next few months. The category, which saw an increase in ad volumes in the first half of the year as compared to 2020, is expected to increase its ad spends too in the upcoming months.
According to Ravindra Singh Negi, Chief Operating Officer, Consumer Products, Bajaj Electricals Limited, the festive season is crucial to them as they see an uptick of sales in various key categories. “Consumers usually plan large-ticket purchases during festivals and we plan to offer some lucrative festive bundles and schemes to our consumers.”
Negi also hinted that they are planning some launches which will be supported by a pan-India multimedia campaign around the festive period. “This will further strengthen the brand presence,” he mentioned.
“With an early festive season this year, along with a good monsoon and lower inflation, we are expecting a healthy demand during the festive season and months ahead,” added Negi.
According to the PITCH Madison Advertising Report 2022, the category is among the top 10 spenders across media. In 2021, the sector invested Rs 1688 crore in advertising as compared to Rs 1328 crore in 2020. It contributed 4% to the overall AdEx.
Saurabh Baishakia, President – Appliances, Usha International, shared, “This festive season, we began witnessing a growth in demand starting early August, led by the northern part of India. If we compare it to last year, the growth has been similar. What we need to be cognizant of is the fact that during this period last year there was a lot of pent-up demand as markets were opening up after the second wave of Covid-19 led lockdown and we had seen a huge sell out growth.”
Baishakia further said that the consumer confidence is on the rise and he anticipates a growth in demand this quarter owing to the festive season. “We are working to enhance our in-store shopper experience across retail and company-owned outlets. Further, given the increasing relevance of rural towns and their rising contribution to the rising sales of branded, high-quality home appliances, Usha is working with its distributors to ensure last-mile connectivity during the festive season. Penetrating deeper into the hinterlands of India opens new growth avenues for businesses. We expect an increase of 25% (Y-O-Y) in our overall sales/revenue during H2 this year.”
Baishakia also explained that the new-age Indian shoppers have recently been pivoting from being price-conscious to being value-conscious instead, and this trend is likely to continue well into the festive season sales as well.
Talking about the marketing strategy for the festive season, Baishakia shared, “In order to further enhance our consumer connect, we are ramping up our integrated marketing efforts. Our ad expenditures across platforms and touchpoints have touched the pre-Covid (2019) levels, in fact there has been an increase to build our omnichannel presence. Through our new product segment launches and easy consumer finance schemes, we want to hit the sweet spot with our customers. In fact, we will be announcing a host of exciting offers across our categories to make our brand value proposition more compelling to consumers during these months.”
Innocean Worldwide Communications Group Director Sridhar Balasubramanian too noted that consumer attitude is positive. “The spirits are fairly high because this festive season is probably going to be better than the last two, which will also lead to a high consumption. The ad spends by the category will definitely see an increase. In the beginning of the year, most of the industries were buoyant and looking at 15-16% growth as compared to the previous years. So, the ad spends are expected to go up,” he said.
The next T20 World Cup and all the major non-fiction shows on TV, according to Balasubramanian, are also excellent opportunities for the category to increase brand awareness. According to him, TV and digital would be the most popular forms of advertising throughout the festive season.
Karan Taurani, SVP, Elara Capital, meanwhile, believes that the category’s overall contribution to AdEx will likely be 5%. “The category itself reported a strong growth last year after coming out of the pandemic. They have a sizable base as compared to last year, but still this will be one segment which might outperform on AdEx front. There will be a replacement factor wherein some verticals may not be doing advertising, and those gaps should be filled in terms of inventories by other verticals like FMCG, auto and even consumer durables.”
He further added that generally the festive period is very strong for the durables category. “Last year also, we saw a good growth from the category. In fact in 2020, when markets opened up, the festive season did lead to some cheers. “This will not be an extraordinary year as it was last year or the year before. But there will be reasonable steady growth in terms of AdE for the durable category.
The durables sector’s TV ad volumes increased 2.5 times in January-May 22 compared to January-May 20, according to the TAM AdEx report for the month of January-May’ 22. The sector witnessed 23% growth in Jan-May’22 compared to Jan-May’21.
When compared to January-May of 2021 and 2020, the amount of print advertising this year for the same period increased by 2.3 times and 3.7 times, respectively. On radio, ad volumes for the durables sector saw a spike of 4.7 times in Jan-May’22 over Jan-May’20. Also ad volumes grew by 14% in Jan-May’22 over Jan-May’21.
Ad insertions of the sector on the digital medium saw a continuous rise of 3.2 and 4.9 times in Jan-May’21-22 over Jan-May’20, whereas 54% rise was seen in Jan-May’22 compared to Jan-May’21. It’s important to note that the category maintained a low profile and shrunk their marketing spends during April-May last year owing to the second wave of Covid-19.
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