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Despite price hike, appliance makers expect double-digit growth in festive sales

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Despite price hike, appliance makers expect double-digit growth in festive sales

Air-conditioner and consumer appliance prices have risen 5-8% ahead of the festive season, but manufacturers expect sales to grow in double digits, driven by premiumisation, replacement demand, easy financing and improving consumer sentiment.

Despite a 5-8 per cent increase in prices of air-conditioners and other consumer appliances ahead of the festive season, manufacturers are hopeful of recording double-digit growth in sales, led by premiumisation, replacement demand, easy financing and improved consumer sentiment. The latest price increase, the third round of revisions this year, has come ahead of the peak festive season, with higher costs of copper, aluminium, steel and crude derivatives, besides rising freight expenses and currency fluctuations prompting companies to raise prices. The industry, which started the festive season on a positive note with strong sales during Onam in the South, expects the momentum to continue through Navratri and Diwali, aided by premiumisation, replacement demand and easy availability of consumer financing. Advt

Consumers are increasingly opting for larger-capacity and feature-rich appliances, including energy-efficient and smart connected products, which is expected to support value growth even as higher prices put some pressure on volumes, industry executives said. Some companies believe that it will have a minimal impact as dealers and distributors have already stocked inventory purchased at older prices through pre-buying schemes in August and September. When asked if the industry would record double-digit growth despite the price hikes, Haier Appliances India CEO N S Satish told PTI, "Definitely. It will."

Haier India expects 30-35 per cent growth in festive sales by value, while unit sales are likely to grow around 20 per cent, he said.


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