Consumer durable makers expect to clock up to 40 per cent sales growth this festive season by offering freebies and discounts to woo consumers, hoping to put behind the woes they faced in the run-up to GST
Manufacturers, including Sony, LG, Panasonic
and Haier, are pinning hopes on the pent-up demand post-GST
after destocking by trade partners in June, to keep their sales counter ticking.
are also loosening their purse strings for marketing campaigns, with Sony
alone earmarking Rs 250 crore and Panasonic
looking to spend 1.4 times more this season on branding and marketing exercise.
is spending 70 per cent more this year compared to last year.
"In the festive season this year, we plan 25 per cent sales growth from August to November, 2017, over the corresponding period last year," Sony India
MD Kenichiro Hibi told PTI.
There is a huge demand in the market and the same is expected to rise ahead of the festive season, he said, adding "we plan to invest Rs 250 crore towards our marketing activities".
body Consumer Electronics and Appliances Manufacturers Association (CEAMA) said most of the factors point to favourable sales in the festive season.
"Pent-up demand due to GST
and favourable monsoon leading to good harvest shall boost the rural demand for consumer
durables," CEAMA President Manish Sharma said.
Moreover, an increase in central employees' allowance and the rate cut by RBI in August will further build consumer confidence to drive the sales of consumer durables, he added.
In June, the industry
as stockists and trade partners sought to liquidate inventories to avoid losses during the transition to the new tax regime.
Bullish on good sales across categories in the festive season, LG
CMO Amit Gujral said: "We are expecting an upsurge in demand in various categories and have adequately geared up for the same."
Haier, which is expecting up to 50 per cent rise in sales this year, sees online retail channels contributing to growth, besides the traditional retail format.
"Overall, e-commerce contributes to 10 per cent of our sales and we're expecting the festive season to make this contribution more robust," said Haier India
President Eric Braganza.
Panasonic, which is looking at 30-40 per cent growth, plans to invest 1.4 times more this season on branding and marketing to draw buyers.
"This will be in the form of TVC commercials, print ad, in-shop brandings, digital marketing efforts and hoardings, besides other local level below-the-line activities. The spend this time is about 1.4 times that of last year," said Sharma, who is also President and CEO of Panasonic India.
Likewise, Haier India
is adopting an integrated marketing approach.
"This year, we have increased our marketing spends by almost 70 per cent across all mediums - electronic, print, out of home, digital and social and in-store branding," Braganza said.
The festive season in India
has already started in the southern region with the Onam festival and will go up to Christmas in December.