The ongoing Onam festival in Kerala is bringing cheer to major consumer durables companies that have a presence in the state. Jose Ponnezhath, chairman, Dealers Association of Kerala, told FE, ?The rising purchasing power for durables, which has increased by 50% over last year, extension of gift offers and promotions by 25 days and small dealers accounting for maximum sales this year are among the various factors that will yield good volume and value sales to durable companies. The 1,000-odd dealers in the state have demanded an extension of the Onam festival holidays to compensate for the several public holidays during the season, when shops remain closed.?

The Onam schemes will continue till Diwali. As a result, consumers in Kerala are expected to benefit the most. According to Ponnezhath, ?There is a growing demand for Samsung electronics and appliances during this Onam as the company is offering an assured gift of ?a gold coin within a coconut? to customers on purchase of Samsung products.

The demand is so high that small and big dealers in Kerala are falling short of supply of Samsung products at their stores. Hence, in such circumstances, it becomes imperative for Samsung India to replenish the dealer outlets with Samsung products within a day, instead of three to four days. Competitor LG Electronics India should also include more freebies and discounts during Onam.?

Ravinder Zutshi, deputy managing director, Samsung India said, ?The demand for Samsung products has shot up by at least five to six times during Onam and as a result, dealers in Kerala are facing the problem of physical supply of Samsung products from their end to the customers in Kerala. For example, if ten Samsung products were sold in a day as normal single day sales, now 60 units are being sold in a single day. So, even though the dealer outlets stock enough Samsung products, they are unable to physically supply them to customers in one single day.?

During the previous Onam festival, low demand for durables had compelled dealers and durable companies in Kerala to extend the festival till September-end.

This was to counter 25% losses in durable sales, as compared to Onam 2005 where durable sales were at their peak, contributing 50% of the overall durable sales in the state.