Electronics leaders eye festive bonanza
Consumer goods companies that sell televisions and washing machines are betting big on the upcoming festive season. The Rs 32,500-crore industry is expected to generate around Rs 11,000 crore to Rs 12,000 crore till October, according to experts.business Updated: Aug 31, 2009 22:19 IST
Consumer goods companies that sell televisions and washing machines are betting big on the upcoming festive season. The Rs 32,500-crore industry is expected to generate around Rs 11,000 crore to Rs 12,000 crore till October, according to experts.
Experts also said that market conditions remained gloomy for the last few quarters due to an uncertain economic environment and as a result buyers deferred purchases. “Buyers had deferred purchases during the last few quarters due to uncertainty in the environment and they are likely to spend now as the festival and marriage season comes up,” Pinakiranjan Mishra, partner and industry leader, retail and consumer product practice, Ernst & Young told Hindustan Times.
New launches and Sixth Pay Commission arrears are also likely to cheer buyers. “The government is expected to release Sixth Pay Commission arrears before Diwali and it will put money into consumers’ pockets. Companies are also planning new launches and offers,” said Suresh Khanna, secretary general, Consumer Electronics and TV Manufacturers Association (CEAMA).
Market leader LG is eyeing sales worth Rs 2,800 crore during September and October. “We will be spending around Rs 150 crore on advertising, dealer promotions and zero per cent interest schemes for buyers,” said Amitabh Tiwari, business group marketing head, home entertainment, LG Electronics.
Tiwari said LG’s manufacturing unit is already working two shifts a day for the last 45 days to stock products for the upcoming festive season.
Whirlpool has started building up inventory too. “We expect a turnover of Rs 550 crore to Rs 600 crore from sales,” said Shantanu Das Gupta, vice-president, corporate affairs and strategy, Whirlpool India. The company plans to spend Rs 50 crore on promotional campaigns and offers. “We will have special offers for washers, microwaves and water purifier and gifts for consumers,” said Gupta.
Samsung’s deputy managing director Ravinder Zutshi said the company was planning “value-added” offers and expects sales to increase 30 per cent. “We will also announce new products,” Zutshi said.