Durables firms raise spend on promotions to boost sales

Seeking to cash in higher salaries and arrears paid to the government employees, consumer durable makers are accelerating their product promotion campaign this festive season to boost sales.

“Availability of additional cash on the eve of festival season would lead to increase in sales in the sector as the festive season during October and November accounts for more than one third of the total consumer durable sales in India,” Consumer Electronics Appliance Manufacturer Association (CEAMA) General Secretory Suresh Khanna said.

“This has also compelled companies’ to increase their promotional spending by around 15 per cent,” Khanna said.

Haier Appliances India COO and whole time director Pranay Dhabhai said, “Most of the electronics appliances have become aspirational products and any increase in supply of money would give boost to the sales, specially during the festive season.”

Haier has also announced a slew of offerings to increase its sales during the festive season such as assured gifts of Rs 6,000 through scratch cards.

“We have increased our promotional spendings by 15-20 per cent during this festive season compared to the last year,” Dhabhai said.

While other players in the segment are not offering such schemes but they are banking on ad-campaigns and the launch of new products to boost their sales. “Although we are not offering any free gifts this time but we are spending up to 20 per cent more on promotions and advertisements this festive seasons,” LG India sales and marketing vice-president V Ramachandran said, adding “consumer durables as a industry comes first in terms of discretionary buying and the government’s move would certainly support the sector”.

Another major player in the segment, Samsung, has also announced the launch of new products to take the advantage of festive sentiments.

“The company is expecting new launches to drive the sales this festive season,” Samsung India Deputy President R Zutshi said.

The central government had distributed the increased salary to about 35 lakh government employees, which happens to be the second day of Navratras and last day of the Ramzan to be followed by Eid .