With the gradual change in consumers’ attitude, who are increasingly becoming tech-savvy, retailers expect sales to soar high during the coming months

Currently, high-end products are attracting more and more domestic consumers, who are gradually becoming increasingly brand conscious. In fact this feeling was echoed by a poll conducted by Retailing360 where 100% respondents held the aforementioned view.

It has been noticed that consumers in the domestic market have come a long way. For example, gone are the days when consumers used to purchase traditional black and white television, now, they prefer buying high-definition television (HDTV). It is mainly the young generation that is catching up fast with the latest technologies in order to make their lives more comfortable. With the ongoing season of cricket matches, retailers have launched a wide range of HDTVs in order to attract young buyers.  

“Earlier, consumer durables such as air-conditioners (ACs) and washing machines were regarded as luxury items meant only for those belonging to the high income group. However, with transformation in consumers’ lifestyle coming from increase in purchasing power, the sales margins of these high-end products have also surged,” says Arun Goel, executive manager of Dev Pvt Ltd, a small-sized manufacturer and exporter of consumer durables in Pune.

Demand rise for high-end consumer goods

Demand for premium consumer goods had witnessed around 25-30% sales in 2007. “Since the beginning of this year, we have witnessed significant rise in both volume and sale of high-end consumer durables. Therefore, we are extremely hopeful that this summer increasing number of consumers will purchase products such as ACs and refrigerators,” says Ashok Choudhary, Suntech Electronics, a small-sized manufacturer and supplier of consumer durables in Jaipur.

Most multi-brand retailers have pointed out that around 12-15% of their total sales have been raised by high-end models. Revision in the tax slabs in the current Union Budget 2010-11 has led to an increase in consumers’ disposable income, which has further boosted consumer spending in the domestic retail market.      

Sabrina Mitchell