Retailers are expecting the sale of consumer durables to shoot up during the scorching summer months due to the launch of latest innovative products in the domestic retail market Soaring temperature is acting as a booster for the domestic consumer durables industry, which is worth Rs 30,000 crore. Leading consumer durables companies are expecting to record good sales. It is estimated that the sales of air-conditioners (ACs) and refrigerators would rise more than 30% and 20%, respectively, this year.
Robust sales are expected especially for latest products that are being introduced in the domestic retail market. A brand like Samsung India is pinning high hopes of earning high profit with a 100% rise in the AC sales in 2010. The company is expected to record around 70% sales from split ACs alone. It has witnessed a rise in demand for its products in Chennai and Hyderabadduring the second month of 2010.
 Launch of innovative products In a bid to further increase the sales of consumer durables, companies like Samsung India are continuously launching new and innovative products that cater to increasing consumer demand. For example,the company has launched 25 new AC models. Consumers can also choose from a wide range of 62 five-star rated refrigerators that the company has launched. “With changing technology, consumers now look for products of superior quality. Therefore, consumers not only opt for products that are available with discounts but also those that provide good service,” says Dev Yadav, proprietor of Suntech, a large-sized exporter of consumer durables in Jaipur.
Like other companies, Videocon has also launched 20 new models of ACs with unique features including a Vitamin C filter that emit Vitamin C molecules in the surrounding area. This helps to soften skin texture and also safeguards consumers against cold, cough and other viral diseases. It has also launched six new models of refrigerators in the domestic market and is planning to introduce 10 more models in the coming months.
‘Go green’ drive
With the country moving towards becoming ‘green’, consumer durables companies like LG Electronics has also introduced five-star rates ACs, which it expects to make up for 30% of the total AC sales. The new product will help the consumers save up to 40% energy, thereby helping the nation to lower the high usage of electricity, especially during summer. Consumers can also purchase environment-friendly refrigerant R410a from LG.
Expanding production capacity
Due to rising demand for consumer durables, especially in segments such as ACs and refrigerators, companies are expanding their manufacturing capacity. For example, LG Electronics has increased its manufacturing capacity from 0.8 million to 1.4 million in its plants situated in Greater Noida and Pune.
“In order to further bolster sales in the consumer durables industry, some retailers are offering gifts or discounts on these products. This will help the retailers to attract consumers who look out for offers on various products that they purchase,” Santosh Venkateshwar, director of Shiva Private Limited, a mid-sized manufacturer of consumer durables in Bengaluru.
With the onset of early summer this year, consumers have begun purchasing ACs and refrigerators since the beginning of this year. Therefore, with surging sales in the consumer durables industry, retailers anticipate to witness high profits in 2010.
Sabrina Mitchell |
