The weakening rupee coupled with the relentless increase in petro product prices will certainly take its toll on the prices of consumer electronics and durables in the short term, say industry sources.
LG Electronics intends to increase the prices of refrigerators and washing machines in the next couple of days, says Mr Rajeev Jain, Business Head – Consumer Durables, LG Electronics India. As LG imports all its top-end models of frost-free refrigerators and front-loading washing machines as CBUs (completely built units) from other countries such as South Korea and China, the impact (of weakening rupee) is to the extent of 9-10 per cent.
LG will pass on only 4-5 per cent to the consumer, for now. Prices of other (locally manufactured) products will also go up by close to 3 per cent, because of the rise in petro products.
However, the company has no plans to increase the prices of flat panel TVs. According to Mr Rohit Pandit, Business Head of the Consumer Electronics division of LG India, as the flat panel TV market is very competitive and growing at a healthy pace, “we do not want to tamper with the pricing for now”.
But, the other major Korean player, Samsung, has no plans to increase the prices of any of its products “at the moment”, as the company does not want to disturb consumer sentiment during the festival time, said Ms Ruchika Batra, Samsung's spokesperson for Southwest Asia. However, she said, “We will keep a watch on the situation. If the situation warrants, we may. But, we cannot comment on it now.”
Godrej, another player in the durables segment, too is planning not to take any price increase till the end of the festival season (October 31). “Post that, according to the rupee-dollar trend, we will take a call,” said Mr Kamal Nandi, Vice-President (Sales and Marketing), Godrej Appliances.