- Another blow to the face of the festival!
- Rate hike for the third time in a year
- Electronic goods will be expensive from October 1!
Electronic Items Price Hike: Inflation has reared its head during the festive season. Not only the essentials, but now other commodities are also getting hit by inflation. Ahead of the upcoming festive season, air conditioner AC, LED TV, washing machine and other electronic items are likely to become more expensive in the country. Exactly how much will the price increase” Hike )
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According to the companies, the hike was necessitated by rising prices of products related to copper, aluminium, steel, plastics and crude oil, as well as freight costs and foreign exchange fluctuations. This will be the third time this year that consumer electronics companies have hiked prices. In view of the increase in the cost of raw materials such as copper and steel, major consumer electronics companies are set to increase the prices of their products by five to eight percent.
How expensive will AC be?
While AC prices are likely to rise by around five to eight percent, some companies are increasing prices of washing machines, refrigerators and LED TVs by three to four percent. But some companies are still reviewing the situation. Many companies feel that this price hike may affect demand. According to some, the impact of the price hike will be limited, as dealers and distributors already have inventory available at the old prices. Several companies including Blue Star, Godrej Appliances, Haier, Daikin and Super Plastronics have already announced price hikes in various categories.
What is the reason for the price hike?
Bosch Home Comfort, which sells LG and Hitachi brand air conditioners, has also hiked its AC prices by around five percent. Panasonic is currently reviewing the situation regarding the price hike. Blue Star Managing Director B. Thiagarajan said the prices of ACs and deep freezers have already been hiked by five to eight percent due to rising commodity prices. He said prices of various raw materials, including copper, steel and plastic, have gone up and the company has hiked prices three times so far this year.
Commodity prices increased by 8 to 10%
Kamal Nandy, business head and executive vice-president, Godrej Enterprises Group, said that commodity prices have increased by eight to ten percent since the last rate review. As a result, a price hike of five to seven percent across various categories is inevitable. But he added that the goods purchased at the old price may remain available in the market for about one to one-and-a-half months.
Big rise in copper prices
Daikin Air Conditioning India President and Managing Director, Kanwaljit Jawa, said the company has increased prices by eight to 10 percent since September 16. He added that copper prices have risen by an estimated 25 to 35 percent, and the strength of the dollar has further increased cost pressure on companies. Meanwhile, Super Plastronics Pvt Ltd SPPL plans to hike TV prices by around seven per cent after October. According to the company, prices of other home appliances have already been hiked by four to five percent.
A concern for the industry
The industry is also worried that this price hike may affect the demand during the festive season. Sales of consumer electronics and home appliances usually see a big boost during Navratri and Diwali as companies offer attractive discounts and offers. Therefore, increased prices can affect the purchasing decision of consumers. However, companies say that dealers and distributors have enough stocks bought at old rates in August-September. Hence, some products may remain available at old rates till Diwali.
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