Leading consumer durables companies are betting big on Christmas and New Year and expect volumes to go up by 20-30% in December. This comes on the back of most companies encountering weak sales in November.
?With Christmas round the corner, we expect the consumer durables industry to grow by 30%; a huge chunk of this will come from Tamil Nadu, Karnataka and Andhra Pradesh, where maximum purchases during this month happen,? said Kamal Nandi, vice-president, Godrej Appliances. He added that the company has launched a new range of washing machines a week ago to woo customers.
November is traditionally a weak month for the consumer durables industry, primarily because it is a post-festive month and there is barely any demand for refrigerators and air conditioners. However, due to the terrorist attacks in Mumbai this year, the purchase scenario worsened and overall growth in the industry came down to 5-7% as against 12-15% expected earlier.
?December will definitely be a better month as wedding purchases will drive sales in North India, while sales from the southern part of the country will happen around Christmas and New Year. Overall, the industry is expected to grow by 20-25% vis-?-vis December last year,? said R Zutshi, deputy managing director, Samsung India Electronics. Apart from the festivals, industry experts feel that the recent reduction in prices due to a cut in excise duty will further boost sentiments and push purchases.
?The 2-3% reduction in prices, which translates into anything between Rs 50-10,000, depending on the category, and the 4% cut in excise duty will help push sales,? said a Mumbai-based analyst.
According to Nandi of Godrej, the company will see the complete impact of price reduction only by January-end, as it is being done in phases. ?The company will reduce prices across different categories by 3-4%. However, this will be done in phases, depending on existing stock levels at dealers’ end,? he said.