The festive season has started on a high note for the Indian consumer electronics and durable industry. With the festive sales beginning with Independence Day and Onam and lasting until December, the industry is witnessing high sales for premium devices compared to entry-level devices.
Godrej Boyce, Business Head and Executive Vice President Godrej Appliances, said that we have seen growth in premium segments and have been slow-down in mass segments for some time now, across geographies and channels. Inflation has affected consumer sentiment in mass segments while premium segments remain buoyant. The premium mix is expected to double this year compared to pre-pandemic years. The premium trend with Frost Free refrigerators and Fully Automatic Washing Machines continues to grow faster, as YTD August data is re-establishes it. The categorisation of premium appliances varies with each category, according to the industry. Anything above 350 litres is referred to as the premium in refrigerators. A 350 litre refrigerator can be purchased for a total of 30,000, side-by-side and French door refrigerators from leading brands now start at a starting price of Rs 60,000 for a higher capacity of 580 litres. In washing machines, fully automatic top load 8 Kg and above and fully automatic front load 7 kG and above qualify as a premium. A Samsung 8.0 kg Ecobubble Top Load Washing Machine with an in-built Heater is available for Rs 27,500, while the LG 7.0 kg Fully Automatic Front Load Washing Machine with In-built Heater is retailing for Rs 34,991.
Samsung's premium offerings, which currently make up 35 percent of its overall consumer electronics business, will lead to its festive growth.
There is a rise in demand for solutions that add convenience to consumers' daily lifestyle enhance health hygiene. Over the past few months, companies have seen good demand for improved capacity and superior technology-led products. Consumers are choosing premium appliances that add value and help them multitask.
Consumers don't want to settle for anything but the best, and that can be seen in the growing demand for larger-capacity appliances and the premium range of products. Deepak Bansal VP Home Appliances Air Conditioners - LG India says that there will be an increase in demand for a minimalist but premium range of products going forward.
Echoes Panasonic channel partner. According to a source who said they were seeing a rise in demand for appliances that are easy to use, allowing them to multitask energy efficient, connected smart and healthy and hygienic. Most people don't have a chance of making their first refrigerator or washing machine purchase. Many of the people who invested in it about a decade ago are in their upgrade cycle.
It is the common consumer sentiment to purchase an advanced or a better model than they currently own, but this is further fuelled by the affordability schemes and offers that are offered by the bands in partnership with banks. A zero-interest EMI scheme is an instant hit among consumers who are willing to stretch their budgets in favor of a slightly premium refrigerator, TV or washing machine over a basic or entry-level model.