Televisions, Home Appliances May Get Costlier From Next Month
Televisions and home appliance are set to become costlier as consumer durable makers are reviewing prices after the festive season sales.
In order to ensure smooth festive season sales, manufacturers had temporarily absorbed impact of higher input costs, following the depreciation of the Indian rupee against the dollar, and increase in customs duty.
Panasonic India is set to increase the prices of its products by up to 7 percent, while some others players have already increased them.
“Over the last few months, the rupee has continually risen which in turn is impacting our inputs costs,” Panasonic India President and Chief Executive Officer Manish Sharma told PTI. “While we try to absorb maximum costs for our consumers, but given the market situation, we will be forced to hike the prices by 5-7 percent from next month.”
Haier India President Eric Braganza said, “We have ensured that the price rise comes into effect post the festive season since India tends to purchase consumer durables extensively during this time. The decision was undertaken considering that cushioning of prices was no longer an option with tight margins coming into play.”
In India, the festive period starts from Onam and is followed by Dussehra and lasts till Diwali and accounts for nearly one third sales of the industry.
According to the Consumer Electronics and Appliances Manufacturers Association, there was an increase of around 3 to 4 percent in prices in September, but it did not materialise.
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 market place during the crucial festive season.Kamal Nandi, President, CEAMA
Nandi, who is also Godrej Appliances Ltd. Business Head and Executive Vice President said, “Onam was a washout for the industry due to the Kerala floods and the festive season did not perform as per initial expectations.”
He said, as the festive season is over, brands are gradually making the price hike effective. “We should be seeing the same implemented over November and December,” he said.
A Sony India spokesperson, however, said the company has no plans to revise price of televisions as of now.
The consumer appliances and electronics sector, barring washing machines, has witnessed almost flat growth in the first half of this fiscal largely due to rupee depreciation, which in turn spiked input costs. According to CEAMA, in some segments like television and air conditioners, volumes fell while refrigerator sales were almost flat.