Consumer durable companies slash prices

Written by Neha Pal | Neha Pal | New Delhi | Updated: Aug 30 2011, 09:12am hrs
With slowdown hitting the consumer durable sector, premium brands like Sony (known for its high prices) are strategising their plans for the market by making their products more affordable for the consumers. This is happening across various verticals which includes Bravia range of televisions which draws around 35% revenue for the company and Sony Playstation.

The 40-inch television along with the 3D kit which used to come at a price of more than R1 lakh is now priced at R70,990 without the kit. Consumers can buy the television without the kit which was not the case before, Masaru Tamagawa, MD, Sony India, said. Sony has also made the 3D range more affordable by launching a 32-inch 3D TV for R55,000.

Sony Playstation (160GB PS3 model) is now priced at R16,990, while the 320 GB version has seen a price drop from R23,490 to R19,990. India is an integral part of PlayStation business growth and we are synchronising the price drop in India with the global price drop. It also provides an additional opportunity to become an attractive proposition during the festive season, Sony Play-Station country manager Atindriya Bose said.

In a similar way, Samsung consumer durables is giving heavy discounts close to R23,000 on their smart TVs. According to the company, customers purchasing smart TVs across D6600, D7000 or D8000 series will get a free sound bar worth R22,900.

With high interest rates and inflationary pressures weighing heavily on the Indian consumers, experts are of the view that consumer durable companies are giving special offers in the form of discounts and price cuts to attract customers.

Manish Sharma, director - marketing, Panasonic India had earlier told FE, The R35,000-crore consumer durable industry is witnessing a slump in demand for consumer items such as LCD, ACs and washing machines and the hike in policy rates has further aggravated the situation.

Inflation has continued for several months and the impact has started coming down to non-essential items. This is a time when consumers are cutting on essential items like gas and electricity, leave aside the consumer-durable items like AC, washing machines, said Gaurav Gupta, director, Deloitte.