Given that families are undoubtedly spending more and updating more often, the industry predicts that this festival will be among the most promising in recent years for the consumer electronics and home appliances sector.
Festive sales are starting to show the effects of the lower GST rates on consumer durables, with merchants seeing a rise in demand for expensive goods like dishwashers and large-screen TVs. Companies say the early momentum is positive and mood is much higher than last year, but it may be too soon to declare this a widespread upgrade cycle.
Sony India said that, as of September 22, customers would get an effective 7.8% bonus. The company’s BRAVIA television line is now offering seasonal discounts of up to Rs 70,000. With discounts of up to Rs 70,000 on 85-inch models, Rs 51,000 on 75-inch models, Rs 40,000 on 65-inch models, and Rs 32,000 on 55-inch sets, the price reductions encompass popular screen sizes.
Since the GST decrease, Panasonic has lowered the cost of all of its air conditioners. The average decrease is around Rs 5,000 per unit, which translates to an average price reduction of 7–8%. Depending on tonnage and specifications, the larger models might see savings of up to Rs 7,000–8,000, while the smallest discounts are about Rs 3,000.
Samsung has joined the celebrations by offering bundled gifts and a 20% cashback on a certain bank cards. Additionally, the firm offers zero-down payment plans, flexible financing choices with EMIs beginning at Rs 990 a month for up to 30 months, and a 3-year warranty on all TVs.
We are seeing a clear preference for high-end goods like air fryers, fans, energy-efficient split air conditioners, side-by-side freezers, and sophisticated washing machines, among others. “Customers outside of the main cities are driving this surge, with demand in numerous smaller towns increasing by several times,” an Amazon representative said, adding that the trend would continue to pick up speed until Diwali.
Walmart-supported Flipkart reported a roughly 26% year-over-year increase in the purchasing of high-end goods in categories including refrigerators, TVs, and smartphones.
It has been the “strongest festive beginnings” in previous years, according to Croma‘s owner Infiniti Retail Ltd, with customer demand clearly shifting towards bigger screen sizes and high-end technology like QLED. The use of dishwashers is also growing quickly, particularly in Tier 1 and urban areas.
The reaction has been positive even in the non-seasonal air conditioner sector, thanks to holiday demand and price adjustments brought on by the GST. Demand for washing machines, which were unaffected by the GST adjustments, has increased only as a result of the holiday season, according to Shibashish Roy, CEO and managing director of Infiniti Retail Ltd.
Purchasers are seeing significant price reductions of up to 8–10%. As a result, affordability has significantly increased, especially for middle-class customers who had been holding out for the right time to upgrade, according to Abhishek Gupta, Director of Finance and Operations at Summercool Home Appliances.
According to Avneet Singh Marwah, CEO of Super Plastronics Private Limited, the sole brand licensee for Kodak and Blaupunkt, the 75-inch TV models are now more reasonably priced, with price savings of up to Rs 15,000, providing excellent value in the premium sector.
The largest increase in our inventory has been in TVs, with 55-inch models seeing a 35% increase. Notably, premium 55-65-inch TVs now account for 70% of sales, up from 50% a year earlier, indicating a surge in demand for the market, Marwah said.
According to an LG representative, “the momentum of which we hope will continue moving ahead as well,” the early indicators are unquestionably good and indicate strong customer mood.
Most appliances were reduced from the 28 percent slab to the 18 percent slab by the GST amendments announced earlier this month, which resulted in an average 7–10 percent reduction in price.
“GST reductions, holiday sales discounts, and easy financing options have created an environment that is favorable for a resurgence in demand. Given that families are undoubtedly spending more and upgrading more quickly, we think this holiday will be among the most promising in recent years for the consumer electronics and home appliances sector,” Gupta said.
Lotus Electronics, another shop, reported a 35% year-over-year increase in recent days. “We know that middle-class customers are the main source of demand. Better items are being purchased by consumers. All I can say is that.