By Kritika Arora
Consumer durable companies are offering huge discounts and rolling out several promotional offers in the run-up to Diwali to cash in on the high demand during the period.
“This year, we are seeing some of the highest discounts on television sets, like 35-40%, compared with 15-20% in previous years,” Avneet Singh Marwah, CEO, SPPL, the exclusive brand licensee of Thomson in India, said.
“After two years, people are going out, sentiments are high despite inflation. Nobody wants to lose even a day of sales this year,” Marwah added.
On the demand front, he said, Thomson has seen growth of over 100% year-on-year in TV sets this festival season, while washing machines have seen around 120% y-o-y growth.
These offers also come against the backdrop of inflation that consumers are facing not only in appliances and electronics but across categories and products. In consumer durables, prices of products have increased by around 20% in the last one year as a result of high commodity prices such as those of cobalt, aluminium, and crude, which the firms passed on to consumers in the form of price hikes.
The increased prices of products have had some impact on demand in the last few months, executives said.
However, as it is a restriction-free festival season after two years, coupled with inflationary pressure on consumers, industry players say good financing schemes for consumers are the need of the hour to help them make the purchases.
Kamal Nandi, business head and executive vice-president, Godrej Appliances, said there are offers and schemes on products this festival season in the form of EMIs and cashbacks, which are more aggressive than last year.
On the demand front, Nandi said refrigerators and ACs have seen 40-50% y-o-y growth over last year. However, the numbers are still lower than 2019.
Nandi further said it is still early to comment on whether the growth momentum would sustain after Diwali.
Elista, a domestic consumer electronics brand which sells LED TVs, washing machines and dishwashers, said they are seeing 10-15% growth this festival season, which could easily have been 20-25% this year, but got limited due to an online price war going on.
Elista is part of TeknoDome group, the sole distributor of Toshiba lifestyle products.
“We are also giving good discounts on products like 30-40% . But there are steep discounts on online platforms which is what is leading to lower sales in offline channels,” Ajay Singh, director (sales) at Elista, said.
This is the season when we are witnessing much more discounts than previous years, Singh added.
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