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We hosted a virtual conference call with the channel partners of leading brands in consumer durables. The objective was to seek insights pertaining to demand, premiumisation trends and the impact of consumer financing of consumer durables retailers. Key highlights of our interactions follow.

Demand picking up for rated fans. Most old non-rated fan stocks were cleared over Jan–Mar’23. Demand for rated (starred) fans has been picking up from Apr’23, despite the difference in prices of rated and non-rated fans being 10-40%. Dealers say price will not be an issue once all stocks of non-rated fan with channel partners have been exhausted.

R&D, the key to Symphony retaining its leading position. Double-digit air-cooler sales volumes in CY23 summer are expected. Air-cooler dispatches, industry-wide, can hit all-time highs. Symphony has an edge over others owing
to its R&D in coolers and launching innovative 7-8 models yearly. This season, it launched “power fans and exhaust fans personal coolers” for residences and new products in commercial cooling. In BLDC, it launched six models. Also,
its online campaigns, TV/full-page advertising helped boost sales.

The Crompton Greaves-Bajaj Finance tie-up resulted in 2x growth in air coolers in rural areas. This month, Havells, too, launched coolers in rural markets, and is doing well. Other brands (Bajaj, Kenstar) have captured more
market shares.

Price hikes. A/Cs have been growing in double digits this season. All large brands (LG, Samsung, Haier, Daikin) hike prices 4-5% from 15th Mar every year. In early Apr, they again raise prices 4-5%. Hence, from Jan to the season’s
end, price are hiked a cumulative 8-10%.

Premiumisation, upgrading persist despite price hikes. Higher incomes, post-pandemic, have brought about a shift toward premium products in all consumer durables categories. The preference for 55-60” TV sets has risen owing to OTT platforms with high-resolution transmission (HD). Companies such as LG, Samsung and Sony are gaining traction in this category. In refrigerators, sales of direct cooling products have come down while those with double doors and side doors have increased. Washing machine preferences are for 6.5kg loads (rather than 8-10kg) while the ratio of top-loading and front- loading has shifted to 50:50 (earlier 60:40). Water purifiers, a growing category, has grown in double digits, post-Covid’19. All brands are focusing on launching new SKUs with innovative features (adding immunity-boosting ingredients).

Cashback, financing schemes boosting sales. Financing has become crucial in boosting sales. Top brands are working out strategies: cash-backs and credit cards discounts 6k-8k, leading to upgrading products at affordable EMIs.

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