After a relatively dull summer, home appliance makers (especially washing machines, televisions and kitchen appliances) expect to report good top-line growth for the September as well as for the December quarter. Consumer durable makers ranging from television makers LG and Samsung to small appliance makers such as TTK Prestige and Bajaj Electricals are happy with the way Onam closed and are geared up for a spurt in Diwali sales now. Players are betting on 20-30 per cent sales growth in the current season over last year.
Kitchen appliances on demand
Though Onam got off to a slow start on account of heavy rains in Kerala, appliance makers say sales have closed on a healthy note. The kitchen appliances category has seen the strongest appetite from consumers. Bajaj Electricals reports having registered 80 per cent growth in its appliances sales, y-o-y, during Onam this year. Market observers say people are spending the money unspent on big-ticket items on kitchen appliances now.
TTK Prestige, the largest player in the organised market of kitchen appliances, reports Onam sales to be 50 per cent higher over the previous year thanks to its success with new products such as induction cook-tops, induction cookware with mixer-grinders and pressure cookers. Says Mr K. Shankaran, Director and Secretary, TTK Prestige, “The short supply of LPG cylinders in the market is a key factor driving demand here. And, in rural districts of the South, electricity comes at a subsidised rate and people prefer to use electricity rather than LPG cylinders for cooking,” he said. The company has seen induction cook-top sales double in the last two quarters.
Panel televisions
Bajaj Finserv Lending, a leading player in the consumer durable loans market, has reported a good demand in high-value panel televisions too over the last few months. Mr Devang Mody, Business Head, Sales Finance & Cross Sell, Bajaj Finance, said, “Consumer durable players would have seen a 25-30 per cent sales growth this Onam. Roughly a 50 per cent contribution would have come from panel televisions.” Mr Mody further said, “Retailers are up-selling the products using finance as a tool. And yes, when there is a finance option a consumer who wants to buy a 32-inch LCD will go for a 40-inch LCD.”
The panel TV market is dominated by Samsung, LG, Sony and Panasonic. Both Samsung and LG have reported a close to 30 per cent increase in their panel television sales in the Onam season. Mr Manish Sharma – Director (Sales & Marketing), Panasonic India, said, “Over the months since Onam we have seen extremely good demand. This year festival sales will make up almost 30-40 per cent of full year revenues of the company.”
Washing machines and refrigerators too have witnessed good demand. Mr Shantanu Das Gupta, VP, Corporate Affairs & Strategy, Whirlpool of India, said the company saw a growth in excess of 20 per cent in the Onam season. He further said, “Diwali sales are yet to peak but our progress in the last six weeks since the trade and consumer schemes were announced is on track with target.”
Offers pour
Consumer durable makers have launched attractive finance schemes for consumers. Last festival season one could see a 10/12 month EMI but this time some retailers have also advertised an 18-month EMI. Also lined up are zero-interest schemes, low down-payment, gift vouchers and exchange offers. Whirlpool of India, for instance, was running the promotion, ‘Sab ka Jashn Sab ki Jeet' during Onam giving yatra.com cash vouchers. With air-conditioner stock piled up on lower summer season sales, the company also advertised a 40 per cent discount on its air-conditioners to 25,000 customers chosen by a lucky draw.