Signs of increase in festive sales
New Delhi, Nov 9: Sales of consumer appliance companies have increased in value terms during the festive season, although there has been a disparity in the number of products sold across different categories. Industry officials said that due to increase in the cost of raw materials this year, companies have increased the prices of products several times.
increase in equipment prices
Prices of air conditioners and other appliances rose by up to 8 percent during festive sales in October. This affected customer purchases in the Indian market, and many postponed purchases. The sales volume of LED televisions this year during the period from Navratri to Dhanteras was 15-20 percent less than last year.
Growth of Godrej Enterprises
Kamal Nandi, head of appliances business at Godrej Enterprises, said the company recorded a growth of over 50 per cent between October 9 and November 6, while the overall industry growth is expected to be 20-25 per cent. Air conditioners made the biggest contribution to this growth, while refrigerators came second. However, the sales volume was 5-7 percent lower than last year.
Decline in TV sales
Avneet Singh Marwah, director of TV brands Thomson, Kodak and Blaupunkt, said that TV sales volume declined by 15-20 percent during the festive season. Demand for premium models remained, but sales of entry-priced products were negatively impacted. Sales of 32-inch televisions also saw a double-digit decline for the first time.
Increase in premium category
Growth in the industry has been primarily focused on the premium category, leading to price increases without growth in sales volumes. Sales of 4K televisions have increased, and their share now almost matches that of Full HD models.
blue star status
Blue Star Managing Director B. Thiagarajan said the company's room air conditioner business grew by more than 35 per cent in both volume and value terms during the festive period. However, the company is facing pressure on profit margins as it has not been able to pass on the entire burden of increased prices to customers. Prices and margins are expected to improve after Diwali.
Importance of festive season in South India
According to industry reports, the festive season from Onam to Dussehra and Diwali in South India contributes about 30-40 per cent to the annual sales of appliance manufacturers.