Feedback from consumer durable makers reflects a mixed response this season. Many characterise sales as “reasonably good, but not exceptional.”
Based on industry discussions, a 10% growth is anticipated over last year’s festive season, a contrast to last year’s 30% increase over the prior year. Generally, the festive season accounts for around 30% of annual sales in the consumer durables sector.
Rural and semi-urban markets show signs of improvement, particularly in products like semi-automatic washing machines and LED TVs. The premium segment continues to lead growth as consumers look to upgrade, often relying on financing options such as EMIs.
In the fiscal year to date, overall growth expectations stand at around 9%, largely supported by air conditioners, washing machines, and refrigerators.
At a category level, washing machines are expected to grow by 4-5%, refrigerators by 10-12%, and televisions by roughly 7%, with large-screen TVs (55 inches and above) seeing double-digit growth in line with premiumisation trends.
Retailers like Vijay Sales report high single-digit growth over last year, viewing this as a positive indicator given current conditions.
Although not peak season for air conditioning, Blue Star anticipates 15-20% growth over last year’s festive period, also driven by premium products.
LG India noted robust growth across all categories, especially in premium items such as large-capacity washing machines and refrigerators, with demand rising in tier-2 and 3 cities.
BSH Household Appliances shared similar insights, suggesting an overall satisfactory but moderate performance in the consumer durables market this festive season.
While consumer durables may have seen an uptick in sales closer to Diwali, it seems that many global luxury brands have missed the bus.
As India’s luxury market surges, global brands are increasingly launching festive collections to appeal to the Indian consumer. However, despite the hype, these collections often fall flat, with netizens analysing them for missing the mark on cultural sensitivity.
Case in point: Christian Louboutin’s Diwali capsule collection, which faced backlash for its “dated” style and lack of connection with India’s rich ethnic heritage.
While brands like Bulgari and Tod’s have found more success by tapping into meaningful Indian cultural elements, many international labels seem to misinterpret what resonates with India’s top-tier consumers.
