Durable consumer goods manufacturers expect double-digit growth during the holiday season
The consumer staples industry expects double-digit growth in holiday season sales this year, despite inflationary pressure on inputs that has driven prices up twice in the year, shortages of components such as chipsets and the threat of a third wave of a pandemic.
Manufacturers such as Panasonic, LG, Haier, Godrej Appliances and Lloyds expect pent-up demand and good growth for premium products in categories such as large-screen TVs, front-loading washing machines and larger capacity refrigerators.
Companies are keeping their supply chain and inventory ready for the holiday season, which starts in the north and other parts of Dussehra and rises to Diwali and typically accounts for up to 30% of their sales in a month.
Manufacturers have plans to launch new models along with a 360-degree campaign, cash back rewards, easy financing options like no down payment, and long-term EMI programs. Good sales for the holiday season would also help them recoup losses suffered due to the second wave of the pandemic and lockdowns.
“We are seeing a steady increase in demand for value-added devices such as smart Android 4K TVs, the line of connected air conditioners (HU series), refrigerators, washing machines, microwaves and other devices. lifestyle, “said Manish, president and CEO of Panasonic India. Sharma told PTI.
He added that due to the return in demand, the company saw a 25% growth in August 2021 compared to last year. “We hope to maintain the momentum of growth during the holiday season to compensate for the losses due to the pandemic. “
South Korean electronics major LG had launched a line of flagship products ahead of the holiday season.
“Currently, consumer sentiment is quite positive. Working from home and staying at home has created a good demand for durable goods, as leisure travel is limited, so a certain portion of consumers are spending to upgrade consumer durables ” , said LG India’s Vice President (Corporate Planning) Deepak Bansal.
The company is seeing good growth in premium products across all categories, he said.
“We are also introducing consumer promotions for the holiday season. Overall, we expect double digit growth from last year,” Bansal added.
Haier Appliances India President Eric Braganza said this year has been difficult in many ways for customers as the pandemic has confined them to homes, resulting in a paradigm shift in consumer behavior and in the home appliance industry in general.
“Nonetheless, early trends suggest positive consumer sentiment with the upcoming holiday season,” he said.
The company has announced a range of exciting offers such as cash backs and easy consumer finance programs to help consumers buy better.
“We also plan to launch new products in key categories that will appeal to consumers looking to upgrade their home appliances this holiday season,” said Braganza.
“Additionally, we plan to launch our new 360-degree integrated pan-Indian campaign that will feature a series of our products across all categories to educate and remember consumers.
“Overall, we are hoping for a good holiday season and expect decent growth from last year,” he added.
Godrej Appliances Chief Commercial Officer and Executive Vice President Kamal Nandi said that despite concerns about the third wave of COVID-19, the double vaccination is expected to help boost consumer sentiment.
“The holiday season typically accounts for 30% of annual sales for us. We are seeing encouraging signs of a recovery in demand and aiming for a double-digit growth rate of over 20% during the holidays,” he said. .
While Lloyd CEO Shashi Arora said that although 2021 continues to be a difficult year due to the second wave and rising commodity prices, the outlook for consumer demand is improving. in this holiday season.
“We are optimistic that the coming holiday season will strengthen the pace of the industry’s recovery,” he said.
Arora added that he was confident about increasing sales of product categories such as LED TVs, refrigerators and washing machines across the industry.
“The start of the holiday season will give a boost to the growing demand for home appliances. Due to the trend, we have added newer models, sizes under our Lloyd brand portfolio,” he said. .
Also last year, the home appliance and consumer electronics industry suffered a setback after a nationwide lockdown. However, it recovered significantly in the second half of the year, helped by a revival in holiday sales.
India’s home appliance and consumer electronics industry was estimated to be worth around 76,400 crore rupees ($ 10.93 billion) before the 2019 pandemic.
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