Consumer durable makers eye 50% sales growth

Sony, Panasonic, Haier and LG bank heavily on festive season despite sluggish market conditions

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Consumer durable makers, including Sony, Panasonic, LG and Haier, are betting big on the ongoing festival season, eyeing up to 50 per cent sales growth despite challenging market conditions.
    
While Sony is aiming for a turnover of Rs 4,700 crore on the back of new product launches in the August-November period, its Japanese rival Panasonic said it is target Rs 1,200 crore.
    
Chinese firm Haier, on the other hand said it is a total sales of up to Rs 250 crore in the month of October alone, which is 50 per cent more than the last year.
     
"We expect Rs 4,700 crore business during this season , targeting a growth rate of 35 per cent over corresponding period last year," Sony India Sales-Head  Sunil Nayyar told PTI.
    
South Korean major LG is also expecting an increase of 20 per cent riding on sales of its LED TVs, refrigerators and washing machines.
    
"We are almost meeting our sales target this festive season. Contrary to fears that the slowdown may dampen the festive sentiment, sales have gone strong during Onam and have done exceptionally well," said LG India Sales Head Sanjeev Aggarwal.
    
The makers have added new several new additions in their product lines along with attractive offers to woo the customers and its worked well despite several odd factors as price hikes, ban of interest free installments, etc.
    
Sony in last 2-3 months has introduced new smartphones of Xperia series, which are getting good response. Apart from that it also added  VAIO Pro 13 laptop and F15 and lenses.
    
"We also have a number of attractive festive offers for Indian customers running currently across all product categories, including the latest range of Bravia LED's, Xperia smartphones, Cyber-shot cameras, amongst others," said Nayyar.
    
According to Panasonic India Managing Director Manish Sharma: "The reason for this being that the Indian consumers consider the festive season as a very auspicious time for purchase of new goods for home and it links very closely to the country's culture. With the onset of the festive season, we are witnessing a vibrancy in the market."
    
Panasonic launched products tailored to the needs of Indian customers. It introduced TV sets from 22 to 60 inches priced between Rs 14,900 to Rs 1.95 lakh. Panasonic range of washing machines did superbly well, said Sharma.
    
"The brand is aiming at market leadership not only in the premium category of products but also mass categories," he said, adding that Panasonic also launched smartphones with compact and sleek designs, loaded with innovative style.
    
Haier has launched products designed to cater urban as well as the rural segments both as French door side by side refrigerator, 3-Door Convertible Bottom Mounted refrigerators and also introduced DC inverter first time to India.

"The pricing has been kept such which can offer a valuable proposition both for the price-sensitive market and also for the product sensitive market," said Haier India President Eric Braganza.
    
Moreover, government's move directing the banks to ease the interest rates of retail loan has also helped the sector.
    
"This has certainly helped Panasonic as it boosted the overall sentiment in the market. It is a welcome initiative and has definitely eased out the financial pressures on customers," said Sharma.
    
Expressing similarly, Aggarwal said that it "is a very constructive and positive step. It will certainly help in boosting consumer sentiment."
    
Moreover, the makers also neutralised RBI's directive to end interest free EMI schemes through attractive schemes as extended warranty, etc.
    
"Since the industry does not have that (interest free EMI schemes) as a push to their ultimate sales now, to look at it from a brighter side, companies now have to relook their strategies to attract consumers through more of product innovations and customer delight," said Eric Braganza.
    
The makers has also done well in the just concluded Onam sales in Kerala and southern India.
    
Firms as Sony over-achieved its targeted budget of Rs 170 crore.
    
"Panasonic India has already achieved its target that we had earmarked for Kerala. Panasonic Viera Flat Panel Displays have done extremely well with 30 per cent growth in Cochin," said Sharma.