Sudden rains throw a curveball at consumer demand

Rising raw material costs, West Asia tensions squeeze consumer goods sales

- AKSHARA SRIVASTAVA

Consumer companies, which had expected a strong summer season, now face twin challenges: intermittent rains and the war in West Asia, both of which are beginning to affect sales and consumer sentiment.

For consumer durables maker Haier, sales dropped by almost 15 percent in the last week following rain and snow in northern states caused by western disturbances.

“The summer started strong, but with temperatures dropping in the northern regions, our selloff was slightly impacted. We are still optimistic about the summer season remaining strong, just as it started. Such incidents don’t affect planned purchases, but customers who buy only in extreme heat tend to postpone their purchases,” N S Satish, president of Haier Appliances India, told Business Standard.