Appliances, consumer electronics firms see up to 45 pc jump in Dhanteras sales; expect to close festive season on a high
Appliances and consumer electronics makers have reported up to 45 per cent jump in Dhanteras sales and are expecting good growth this festive season, led by robust demand for large-screen TVs and premium range of products.
Though the industry is facing persistent inflation coupled with a shortage of semiconductors, companies like Sony, Panasonic, Samsung, LG and Godrej have witnessed positive response for Dhanteras sales compared to last year.
According to firms, consumer sentiment is at an all-time high this festive season and the e-commerce channel, which has emerged stronger after the pandemic, is helping them drive penetration across rural and smaller markets.
The festive season sales, beginning from Onam in the South and Dussehra in the North and other parts, continue till Diwali. The festive season accounts for up to 30 per cent of the total annual sales of brands.
Sony India Managing Director Sunil Nayyar said this Dhanteras, there has been good demand for large-screen premium televisions and it sold a considerably high number of soundbars right from entry, mid- to high-end models.
''The market has uplifted itself from last year and we have received a very bullish outcome with overall estimated value growth of 30-35 per cent compared to Dhanteras sales last year. ''There has been a remarkable response from customers for the adoption of large-screen premium televisions, especially 55-inch and above and Sony has significantly dominated this segment,'' he said.
Besides, Sony sold a ''considerably'' high number of soundbars and headphones, with a major chunk coming from online sales. Sales in the digital imaging category, which comprises cameras, have been promising, he added.
''We are hopeful that this favourable growth momentum will be sustained throughout the festive season with our compelling products and consumer promotion offers,'' Nayyar said. Echoing his views, Panasonic India and South Asia CEO Manish Sharma said the company has witnessed a ''very positive response'' for Dhanteras with a growth of 24 per cent over last year.
''We hope to close the festive season with 50 per cent growth,'' he noted. This would be driven majorly by appliances such as its smart 4K Android TVs, a connected range of ACs (HU series), refrigerators, washing machines, microwaves, and other lifestyle appliances.
Industry body Consumer Electronics and Appliances Manufacturers Association(CEAMA) said the sector has witnessed good sales in the mid- and high-end segments in the last couple of days, including Dhanteras on Tuesday.
''This trend is in line with the usual festive season consumer demand and we are optimistic of good sales in the next few days in the run-up to Diwali. ''The sales figures will pick up as we move into the last leg of the festive season, this is a normal trend during the Diwali season,'' CEAMA President Eric Braganza said.
''We saw a strong uptick during Dhanteras festival, clocking over 20 per cent growth compared to last year on the back of our Diwali offers and affordability programs. ''This growth is majorly led by premium TVs and digital appliances as there has been an increased demand among consumers to equip their homes with the latest technology to create a high-quality in-home experience,'' Samsung India Senior Vice President, Consumer Electronics Business, Raju Pullan said.
Similarly, LG has also witnessed an uptick in sales this festive season, especially in the premium products category.
''We have seen good steady growth this festive season over last year, especially for premium products across categories like OLED TV, Ultra HD TV, front loading washing machines, side by side refrigerators, charcoal microwaves and water purifiers,'' LG India VP Corporate Planning Deepak Bansal said.
The company expect the momentum to continue with the upcoming marriage season, he added.
''The festive period saw single-digit volume growth over last year. In comparison value growth was higher at 20 per cent -- a result of premium segments like frost-free refrigerators, fully automatic washing machines and ACs seeing greater growth coupled with the price hikes the industry has seen,'' Godrej Appliances Business Head and Executive Vice President Kamal Nandi said.
Price inflation in general has increased the overall cost of living for people.
''Coupled with the pandemic's economic impact at a household level along with future uncertainty, the greater population of consumers continue to be conservative when it comes to relatively large ticket items and we will need to wait for the economy to do better for a stronger purchase sentiment for appliances,'' he added.
The domestic appliances and consumer electronics industry was estimated to be around Rs 76,400 crore (USD 10.93 billion) in the pre-pandemic 2019.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)