The consumer appliances market is likely to see a price hike in TVs and ACs post festive season sales to boost overall performance
Kamal Nandi, President, Consumer Electronics and Appliances Manufacturers Association (CEAMA), said that the consumer appliances brands were likely to increase their prices by 7-8 per cent from December 2018. He added that the move had come after the festive season was over and the brands were looking to raise their selling prices.
Price hike in TVs, ACs
The price hike is likely to hit almost every category of consumers appliances and electronic gadgets. TVs, ACs, refrigerators and others may witness about 7-8 per cent price increase. Xiaomi has announced a 15 per cent price while Realme followed suit in the smartphone category.
As per CEAMA reports, TVs and ACs has been witnessing a decline in sales in comparison to previous years. The consumer electronics segment overall has witnessed a flat growth in the first half of this fiscal mainly due to rupee depreciation and increased import tariffs.
Result of low demand
CEAMA President informed that there was an increase of around 3-4 per cent in prices in September which did not get materialised. “Though the MRP was increased, the price hike undertaken in September did not really get effective, due to sluggish demand and brands trying to garner maximum share in the marketplace during the crucial festive season,” Nandi was quoted by PTI.
Nandi, who is also the Business Head and Executive Vice-President of Godrej Appliances cited that Onam festival in South India was a washout for the industry due to the Kerala floods and the festive season did not perform as per initial expectations. According to him, the price hike implementation could be seen from December onwards.
Panasonic, Haier consider raising price
Panasonic India is set to raise its selling price by up to 7 per cent. Manish Sharma, CEO, President, Panasonic India, said that over the last few months, the falling rupee had impacted the inputs costs. While the company tried to absorb maximum costs for the consumers, the market situation had compelled to increase prices by 5-7 per cent from next month.
Haier has also hiked its selling price considering that consumer durable products sell the most post festive season.