THE INDEPENDENT EDGE
Double Digit Growth is Expected for Upcoming Festive Season
Makers are expecting a high demand for premium products across categories like large-screen TVs, front-load washing machines, and bigger capacity refrigerators.
Double-digit growth is expected during the upcoming festive season this year for the consumer durable industry. Despite price hikes trends and shortages, makers are expecting a rising demand for their premium products such as large-screen TVs, bigger capacity refrigerators and larger appliances.
With people spending more time at home with their families, going away on holiday less and cutting back on socializing expenses, they are using the extra money to upgrade their living spaces. The more time people spend at home, even working remotely, the more they are investing into turning their space into a place they enjoy. Companies are taking note to this and are keeping their supply chain and inventory ready.
Why is a good sales festive season so important? With the losses that many companies faced during the lock downs, labor shortages, tariff increases and more unprecedented hardships, a good three or so months of increasing sales helps them recover a portion of their losses. Makers are using this time to launch new models, marketing campaigns with attractive incentives and more to secure better sales.
What does this mean for you, the small business owner?
With the festive season typically contributing to 30% of the annual sales, early trends and consumerism helps estimate a 20% increase in sales over the last holiday season. To further extend their marketing efforts and campaigns, brands are pushing more cashback offers. Makers have planned to launch new models along with 360-degree campaigns, cash backs, easy finance options as zero down payment.
Consumers are actively shopping for larger appliances, meaning larger sales tickets. Rather than someone who recently purchased a home shopping for appliances, the rising trend continues for those wanting to upgrade what they already have. They are shopping for quality appliances that not only look good in their home, but make their life a little easier. Rather than shopping for necessities, they are shopping for leisure and upgraded entertainment.
The Marketing Behind the Products
South Korean electronic major LG had launched a range of flagship products ahead of the festive season.
“Currently, consumer sentiment is quite positive. Work from home and stay at home have created good demand for durables, as leisure travel is restricted so certain section of consumers are spending on upgrading consumer durables,” said LG India Vice-President (Corporate Planning) Deepak Bansal.
The company is witnessing good growth in premium products across categories, he said.
“We are also introducing meaningful consumer promotions for the festive season. Overall, we are expecting double-digit growth over last year,” Bansal added.
Last year also, the appliance and consumer electronic industry had a setback after a nationwide lockdown. However, it had recovered substantially in the second half, helped by a boost in festive season sales.