Don?t be surprised if you do not get traditional freebies like sunglasses, T-shirts and dinner sets along with your consumer durable buys this Diwali. What is in store for you might be better than what you were hoping for. Consumer durable companies are gearing up to offer value-added gifts like a TV stand with a TV set, DVDs and CDs along with DVD players, etc.
LG Electronics India (LGEIL), for instance, has decided to do away with such free gifts on all ?LG? branded electronics and appliances across 2000 dealers and 400 distributors in India. As for the rationale behind the move, Amitabh Tiwari, head?CTVs, LGEIL told FE , ?The move is an outcome of a recent survey conducted by external research agencies, IMRB and TSN for LG. The survey revealed that 68% customers are not interested in gift offers such as T-Shirts, sunglasses etc. They prefer value added offers like a TV stand, DVDs and CDs alongwith DVD players. Hence, we have decided to continue with value additions for the customer?s benefit.
LG is launching new flat panel range of CTVs in September-end before Diwali begins apart from two new models in ultra slim TVs and three models in slim TV range. Plans are on the anvil to launch two or three new models in 29-inch CTVs and in 21-inch flat CTVs.
Homegrown Videocon, too intends to follow a similar strategy. Venugopal Dhoot, chairman, Videocon group of companies says , ?We have noticed that during Diwali, demand for durables with value added offers go up by as much as 40% as compared when with other freebies. Hence, durable companies should focus more on offering value added gifts rather than unrelated freebies. Videocon will focus on such value added offers this Diwali, although other gifts offerings will continue at a minimal pace.?
Samsung India is not sure yet whether they would look at discontinuing free gifts altogether. Ravinder Zutshi, deputy managing director, Samsung India said, ?We will for sure have value added offers for customers, but we are not sure on offering free gifts to customers during Diwali.? Samsung India is planning launch 10 new models in slim flat TVs this week with new audio models apart from high-end side-by-side refrigerators. The company hopes the last quarter to contribute 35% of the full year sales.
There are also others like Sansui Ltd, Mirc Electronics of Onida fame and Haier Appliances India, who believe in offering heavy discounts on durable products more than free gifts. Pranay Dhahai, chairman, Haier Appliances India said, ?During Diwali, we offer scratch card schemes apart from consumer products such as wall clocks apart from certain discounted offers.?
