Festival season is over! Now, consumer durable companies are planning to hike prices of television sets, home appliances and other products
Festival season is over! Now, consumer durable companies are planning to hike prices of television sets, home appliances and other products by 5-7% from next month. News agency PTI reported consumer durable companies are reviewing selling price of their products as they had absorbed higher input cost during the festive season.
Companies faced higher input cost due to the double whammy of depreciation in the Indian rupee and the hike in customs duty. Panasonic India told the news agency that it would hike the prices of its products by up to 7%.
Panasonic India President and CEO Manish Sharma said that the continually depreciating rupee impacted company’s input cost. He said that the company tries to absorb the cost but given the market situation, they will be forced to increase prices by 5%-7% from next month.
Meanwhile, Haier India President Eric Braganza said that absorbing prices was no longer an option as tight margins have come into play. This year, Onam did not materialise well for consumer durable companies due to the devastating floods in Kerala. However, Sony said that it did not have any plans to increase prices of its television sets.
Smaller companies like Daiwa TV and Aisen told FE online that even they are not planning to hike prices anytime soon. “While the prices of consumer durables will rise in the near future, Daiwa does not plan to revise its existing prices,” Arjuun Bajaj, CEO and Founder of Daiwa TV said.
Vinit Agarwal, Brand & Marketing director Aisen said that he expects most of the brands to increase prices but Aisen will not be increasing it for the moment and try to maintain the prices at the current level.