Consumer Durables: All Set To Charm Again

With sales of consumer appliances picking up in the unlock phase during the ongoing pandemic, companies are hoping that the festive season will witness a spurt in demand, especially for home products like air conditioners, refrigerators, washing machines, and microwave ovens. But there is a flip side too on account of the unemployment caused by the lockdown. Join Anthony Fernandes as he takes into account how these factors can affect this sector.

- Anthony Fernandes

Amidst the present dismal macroeconomic prospects unleashed by the pandemic crisis, there remains one sector that is banking on the crucial festive season to recoup losses – consumer durables. The sentiment is largely held across the industry with leaders of a few consumer durable players believing that the pent-up demand, especially for appliances, during the unlocking period, had been phenomenal, and this will show in the quarters ahead. Says Vijay Babu, VP (Home Appliances) at LG Electronics India, “The company achieved 30 per cent sales last year during the festive season and is expecting more than 30 per cent growth this time.”

Major consumer durable players in India have been banking on this opportunity to jump-start growth by advancing production plans, expanding rural outreach, and even planning attractive offers, hoping to achieve sales growth during this period after a lackluster month of May and a near wipe-out in April. However, the current situation is playing into the hands of the industry to some extent. According to Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances, with the work from home situation and reluctance in hiring domestic help due to pandemic fear is leading to a spike in demand for home appliances like air-conditioners, refrigerators, washing machines, and microwave ovens.