“Based on past trends, these four products (TV, microwave ovens, vacuum cleaners and washing machine) are expected to drive the growth of the consumer durable industry growth during this festive season as well,” GfK Market Intelligence, which tracks sales of electronics items, said.
During the festive season, both online and offline stores offer discounts also, which might further boost consumer durable items sales.
The festive season during Diwali accounts for about 17–19 per cent of all sales annually and the contribution is more for small domestic appliance categories (up to 23 per cent).
GfK Head (Market Intelligence-India) Anant Jain said, “As a result of the epidemic outbreak, consumer goods sales have been facing challenges for the past two years, but now things appear to be returning to normal. The fact that certain significant sectors experienced strong double-digit growth in Q1 of 2022 is proof that the offline market has received a stimulus with shoppers moving back to the market to shop.”
Jain said that consumer durables in 2022-23 saw a good start to the July-September with a 17 per cent YoY volume gain in July 2022 and a 21 per cent jump in value for major domestic appliances.
GfK said that during the festive season of 2022, recovery of the early months lost due to the COVID-19 waves in January and February 2022 is expected. The trend of premiumisation might continue this festive season as Indian consumers continue to seek products that provide superior performance and user experience.
It also said consumers have responded favourably to smart appliances, which require minimal maintenance and have a wide range of capabilities.
In September, Crisil in its report said the consumer durables sector is likely to witness a double-digit volume growth, pushing its revenue up by 15-18 per cent to Rs 1 lakh crore this fiscal, despite increasing margin pressure. It added that a 10-13 per cent spike in demand/volume, which will be driven by both urban and rural segments — led mostly by the AC and refrigerator segments, though rural demand will come into play in the second half of the fiscal.
The industry had crossed the pre-pandemic mark in value terms last fiscal, and this fiscal, it will scale past the pre-pandemic volume mark by 3 per cent.
The Crisil report said a 10-13 per cent spike in volume will boost the top-line of the sector by 15 to 18 per cent this fiscal, taking past the size of the durables industry to over Rs 1 lakh crore, which will be 3 per cent above the pre-pandemic size.
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