The consumer durable industry, hopes to have double-digit growth during the festive season sales, despite concerns of economic slowdown.
Although, the industry is struggling for growth in some segments like TV panels, manufacturers expect factors like good monsoon and recent stimulus measures by the government will have positive impact on sales.
Pinning up their hopes, the makers have lined up new models and product ranges and are investing substantially on branding, besides providing buyers lucrative financial deals and cashback offers on premium high-end models.
Leading consumer durable maker Samsung, is expecting double-digit growth in TV panel market, during this festive season sales.
"This festive season, we are expecting a strong double-digit growth from TV," said Samsung India Senior Vice President, Consumer Electronics Raju Pullan.
The company is increasing its retail investment by 25 per cent to provide better consumer retail experience at brand shops and shop-in-shop, he said adding that Samsung has received good response of its high-end QLED range of television sets.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), although the last three months were not very encouraging for the industry, manufacturers are bullish about the ensuing festive season sales.
Consumer durable firms expect to have double-digit growth led by factors like good monsoon and steps taken by the government such as reduction in corporate tax.
"In July and August, sales were almost flat for the industry and in September, there was some growth. However, the industry is optimist about this festive season and expects that consumers would spend during this period," said CEAMA President Kamal Nandi.
Consumer durable maker LG Electronics expects 30 per cent increase in its Q3 (August-October) sales. "In this three months (Diwali quarter), we are expecting Rs 5,000 crore turnover," said LG Electronics India VP-Home Appliances Vijay Babu.
Haier also expects an upward trend during the festivals and hopes to achieve sales growth of around 30-35 per cent.
"Although, there has been a slight decline in sales of TV panels, which has largely been observed in urban markets, at Haier, we are hopeful that the trend will pick up during the festive season. The purchasing power of the consumer is relatively high during this period and we expect to witness a growth of 30-35 per cent in sales during the upcoming festive season," said Haier India President Eric Braganza.
Besides, BSH Home Appliance India also expects festive season sales to be positive and is introducing cashbacks and easy EMI schemes to boost sales.
"Despite the slowdown, we are expecting the festive season sales to be positive. We are running a lot of lucrative consumer offers across Bosch and Siemens products. We are also introducing cashbacks and easy EMI schemes," said BSH Home Appliance India Managing Director and CEO Neeraj Bahl.
The makers also expect a good turnout this season from the non-metro market led by factors as good monsoon.
"Since we have had a good monsoon this year, we have been witnessing a growth trend in the sales especially in Tier II and III markets since people consider festive season as one of the most important part of the year to buy new products," said Braganza.