Consumer Durables - Volume Growth Subdued; Price Hikes Delayed: Motilal Oswal

Consumer Durables - Volume Growth Subdued; Price Hikes Delayed: Motilal Oswal

A customer wearing a face covering looks at a kitchen display at a store in Navi Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

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Motilal Oswal Report

Our channel checks suggest subdued volume growth across various categories due to-

  1. the higher base of last year;

  2. continued price hikes impacting demand; and

  3. slower channel filling on concerns of a third Covid-19 wave.

Brands have been unable to take total price hikes amid a weaker demand environment. Further price hikes are likely to be implemented from January; however, distributors and dealers remain concerned about the demand impact of such price hikes.

While demand has weakened from the high rates seen over the past few quarters (also a sign that pent-up demand is now over for the sector), brands are focused on market share gains. This has resulted in heightened competitive intensity, especially in the white goods space.

Click on the attachment to read the full report:

Motilal Oswal Consumer Durable Sector Update.pdf
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