Consumer Durables Sector Update - Crisis In Peak Season Poses Risk To Air Conditioner Offtake: Motilal Oswal
Air conditioners are displayed in a showroom. (Photographer Qilai Shen/Bloomberg)

Consumer Durables Sector Update - Crisis In Peak Season Poses Risk To Air Conditioner Offtake: Motilal Oswal

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Motilal Oswal Report

The initial few days of the summer season were strong (March 2021), with higher secondary sales reported in Air Conditioners.

However, the recent announcement of state-wide lockdowns has dented consumer sentiment in a key season for ACs.

In this report, we delve into the key risks and outlook.

AC is a highly seasonal product, with ~70% of calendar year primary sales in this category reported over January–June.

In fact, the three-month period from March to May accounts for 50% of CY sales.

Any disruption during this period results in a disproportionate impact on industry sales.

Moreover, since ACs require installations, implying house visits by technicians, the consumer may be hesitant to purchase ACs in the current situation – although, we understand that companies did manage this technicality last time around.

Click on the attachment to read the full report:

Motilal Oswal Consumer Durable Sector Update.pdf

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