While sales of air-conditioners have surged due to a hot summer, consumer durable players are now expecting a strong monsoon to revive growth for the washing machine segment, which has seen penetration languishing at 7 per cent over the past couple of years.
While market leader LG is already on the job of unleashing energy-saving and water-saving technologies, domestic major Godrej Appliances is hoping to generate demand for its semi-automatic washing machines based on higher rural consumption, post the monsoons.
German MNC Bosch Household Appliances is also innovating with its new ‘Variodrum’ technologies and investing behind monsoon-specific campaigns to drive more penetration for the ₹7,000-crore category.
“During monsoons, the demand for washing machines and dryers goes up and there is a greater need for consumers to upgrade during this season. The second half of the year looks good for the category as monsoons stimulate demand, which has seen sluggish growth and penetration between 7-8 per cent over the past few years,” states Gunjan Srivastava, Managing Director and CEO of BSH Household Appliances Manufacturing.
In fact demand for washing machines as a category is yet to reach significant levels compared to that of refrigerators or air-conditioners, which have double-digit growth rates. “The washing machine category is still some distance away from inflexion point and unless the GDP moves up, the middle class will not graduate to superior products. But we are trying to influence penetration for the category this monsoon with a new range of washing machines, along with a campaign,” added Srivastava.
Considering that 70 per cent of the washing machine category comprises the semi-automatic segment, Godrej Appliances is also targeting the period post the monsoons when there is expected to be rural demand for such washing machines.
Kamal Nandi, Executive Vice-President, Godrej Appliances, said: “Washing machines are used mainly for drying during the monsoons and the category is still less than half the size of the refrigerator category. We are now expecting better growth for the category on the back of good monsoons, which should spur demand for our semi automatic washing machines.”
LG takes the leadBeing a market leader in washing machines, LG India, with a dominant 40 per cent value share in the category, has taken the onus of growing the segment further.
“Demand for washing machines generally peaks during the monsoons, as there is need for better drying and this extends to the winter months when there is resistance to wetting hands to wash clothes. With penetration at just 7 per cent, it is still a huge segment that we intend to focus on and grow with new water and energy saving technologies,” said Niladri Datta, Corporate Marketing Head of LG India.