The consumer durables market in India will be flooded with premium products this festive season as companies see more demand for bigger televisions, high-end washing machines, air conditioners loaded with new smart features and microwaves supporting gourmet cooking.
After two damp festive seasons due to Covid-19, this is the first year when companies are expecting good demand across product segments. With more disposable incomes in the hands of people, having saved on vacations and eating out over the last two years, companies say that consumers are now willing to spend that money on better and premium products.
LG India is already seeing good growth across premium product categories like side-by-side refrigerators, front loading washing machines, hot and cold air conditioners and charcoal microwaves. Deepak Bansal, vice president (home appliances and air conditioners) of LG India told FE, “We are launching flagship products across categories. Overall we are expecting good growth during the festive season.”
Daiwa said that it will be focusing on larger size TVs this festive season, which includes 43”, 50” and 55” ultra high definition (UHD), as the demand for the same has been the highest. Arjun Bajaj, CEO & founder — Daiwa and director of Videotex International said, “Daiwa shall also be announcing a slew of new product announcements, including introducing our 165cm 4K UHD Smart TV powered by webOS TV. Additionally, we would also be bringing out new models of washing machines. With consumer sentiments being positive, Daiwa is betting big on this period and looking at 2X sales this season, compared to the last year.”
Panasonic has also seen a rise in demand for premium appliances that are easy to use and allow consumers to multi-task, be energy-efficient, connected and smart, and add to health and hygiene. The company said that ahead of the festive season, it will be strengthening its value-proposition range of appliances comprising TVs, washing machines, microwaves and kitchen appliances. Fumiyasu Fujimori, managing director, Panasonic Marketing India said, “Our air conditioners (ACs) registered more than 35% growth this summer versus FY19 with maximum contribution coming from 4-star and 5-star inverter AC. We are targeting double-digit growth in the festive season reinforced by smart ACs and the home appliances category.”
According to analysts, white goods and durable firms are expected to generate revenue growth in the mid-high teens over the next two years on the back of pent-up demand, revival in the housing sector and capex cycle, steady price hikes and gains from the unorganised sector.
“Most white goods and durable firms have low penetration in India which provides a growth tailwind in the medium term. We also note the work-from-home culture has resulted in higher demand for durables such as air conditioners, washing machines and dishwashers,” said analysts from ICICI Securities. However, higher interest rates and higher input prices may impact the cost of ownership and may have an impact on volume growth.
Nevertheless, companies are positive about the festive season demand as Bansal from LG India said that the company is expecting good growth during the festive season. “There will be attractive EMI offers, product bundling like bedroom refrigerator with big capacity refrigerator, extended warranty on water purifiers,” he said.
Panasonic will be running offers in terms of no-cost EMIs, cashback, and easy finance accessibility to ensure the momentum and fuel the demand, while Daiwa is also looking at offering discounts and special deals which it plans to unveil before the season begins.