Air-conditioner category clocked 7 per cent growth in volume and 9 per cent growth in value in the first half of 2023, compared to the first-half of 2022, on the back of low penetration levels.
According to data released by GfK, the washing machines segment clocked 6 per cent volume growth and 10 per cent value growth. Microwave ovens maintained a steady performance with 4 per cent volume growth and a modest 3 per cent increase in value. Meanwhile, air-conditioners clocked 7 per cent volume and 9 per cent value growth in H1 2023 versus H12022.
“This growth signifies robust demand for cooling solutions, driven by factors such as rising temperatures and an increased focus on home comfort. However, despite the observed growth, there is significant room for further expansion, as suggested by the low penetration of these products,” the market intelligence firm noted.
Consumer electronics
Within the consumer electronics (CE) sector, audio home systems experienced a 21 per cent surge in volume, accompanied by a 12 per cent rise in value, highlighting a strong market presence. “PTV/FLAT Televisions exhibited a 13 per cent volume increase, while value growth remained modest at 2 per cent,” it added. This indicated a surging aspiration for an enhanced and immersive entertainment experience.
“The Indian consumer market is undergoing a remarkable transformation, driven by evolving consumer preferences and a growing appetite for innovative products. This growth highlights the resilience and adaptability of the Indian consumer market in the face of changing dynamics. The Technical Consumer Goods market exhibited 8 per cent growth in value. Meanwhile, the Consumer Electronics (CE) sector, i.e., the audio-video categories, saw a 13 per cent surge in volume,“ said Soumya Chatterjee, Market Expert for Technical Consumer Goods - India, GfK said.
According to GfK Market Intelligence offline sales tracking, the Technical Consumer Goods (TCG) sector recorded 8 per cent value growth during H1’23 compared to H1’22. While the telecom (smartphone and mobile phones) segment experienced a marginal 4 per cent reduction in volume, it was offset by a substantial 12 per cent increase in overall value. The smartphone segment alone clocked a 3 per cent increase in volume, resulting in a 14 per cent growth in value.
Premium products see surge
Premium smartphones (priced above Rs 30,000) grew 50 per cent in volume terms during the first half of 2023, compared to the same period in 2022, accompanied by 54 per cent growth in value. This shift in consumer preference underscores the demand for advanced features, innovative technology, and an enhanced smartphone experience.
The desktop computing segment maintained steady growth, achieving a 7 per cent increase in volume and a 9 per cent increase in value, reflecting its consistent market positioning.
“While Mobile PCs have experienced a 14 per cent decline in value, gaming laptops have shown a 6 per cent growth in sales value. The gaming industry has experienced significant expansion during the pandemic,” the market intelligence firm added.
Online sales
“Panel televisions, refrigerators and Mobile PCs have registered high sales volume growth of 42 per cent, 29 per cent and 28 per cent respectively. While the health & well-being categories such as washing machines and water purifiers witnessed 11 per cent and 18 per cent volume growth respectively. The premiumization trend is prominent in the online channel as well,” GfK noted.