Consumer goods makers bullishly betting on a bumper summer sale in 2022

In spite of massive surge in input costs and a slowing consumer market, the country’s consumer goods makers are gearing up for a bumper sale this summer season. As summer heat spreads early across key regions, makers of summer products like colas, air conditioners, refrigerators and air coolers are expecting a revival in demand after two years of complete washout.

Companies like Coca-Cola and PepsiCo - the fizzy drinks giants in the market - are now banking heavily on the increased outdoor activities that they expect would drive out of home consumption. While, white goods makers like LG, Panasonic and Usha, among others, are finally getting their enthusiasm back as the meteorological department predicts heatwaves across north India.

“We have been gearing up to mobilise our retail channels in advance to cater to the growing demand in summer and it has worked well for us. With the summer season now upon us, consumer sentiment is showing an upward trend for products across our categories”, Tish Condeno, Senior Director, sparkling flavours, Coca-Cola India and Southwest Asia told Business Today.

“This summer, as consumers resume out-of-home activities and look to outdoor entertainment channels, our focus is on marketing initiatives that will delight consumers with creative, out-of-the-box storytelling and product innovations”, she added.

“After the two consecutive seasons overlapped with the pandemic, the summer of 2022 comes at an opportune time as the business outlook remains positive. The lifting of Covid-19 restrictions across the country is expected to spur consumers to celebrate more occasions together and increase demand for beverage products driven by out-of-home consumption. At the same time, in-home consumption remains robust with consumers seeking value offerings,” a PepsiCo India spokesperson said.

To lure consumers and to stay ahead of the competition the beverages majors are lining up new products and brand campaigns. “Most recently, we unveiled Fanta Apple Delite and Coca-Cola Zero Sugar, which we are confident will provide much-needed rejuvenation as consumers across the country cope with the rising summer heat,” said Condeno from Coke. 

The PepsiCo India spokesperson also pointed out that its newly launched brand campaigns are yielding rich dividends and they already have witnessed “an uptake in demand across the country and are witnessing a jump in both penetration and frequency.”

Moreover, home appliances major LG India is ramping up its after-sales service network and enhancing consumer financing facilities, apart from launching a new portfolio based on insights from the India market. 

“Our outlook for this summer season is very positive. Since most of the Covid restrictions have been lifted there is good footfall at retail stores. Also due to rising temperatures there is good demand for compressor products i.e. Refrigerators & Air Conditioners. Overall, we have seen good growth in January-March quarter across product categories,” said Deepak Bansak- VP- Home Appliances & Air Conditioners LG India

“We will further strengthen our market leadership across categories. Apart from strong product portfolio another key buying criteria is After Sales Service, at LG we have a robust after sales service network which ensures hassle free experience for consumers,” he added.

According to Fumiyasu Fujimori, Managing Director, Panasonic Marketing India, the company has already witnessed “record growth” for ACs this March. “We have recorded a growth of nearly 142 per cent vs March 2019 in terms of volume and 177 per cent in value terms. This year, we are expecting robust sales from all regions. Infact, we are witnessing a rise in demand for smart, inverter ACs that offer healthier indoor air quality. We are hoping to see an overall 30-35 per cent growth this summer (vs FY2019) for Air Conditioners. Similarly, we have seen a growth of 11 per cent for our refrigerators as compared to FY2019 and we hope to grow at 10-12 per cent this year too,” he told Business Today.

Kapil Kohli, President, Retail at Usha International said, "With Covid-19 infections ebbing, life resuming normalcy and summers temperatures already breaking records the brand is witnessing a significant surge in demand for fans and coolers."

"Though the pandemic did cast a shadow on the last two summer seasons and brought into play new challenges, we are happy to say we rose to the occasion and are bullish about Usha's retail business vertical where we expect a sell-out growth of 30-40 per cent in FY 2022. With summers starting early, we have aligned and mobilised our supply chain logistics to ensure our retailers can meet the rising demands of our consumers. With a keen eye on expanding our distribution across the country, we are also focusing on a seamless and uninterrupted supply of summer essentials such as fans, air coolers, home, and kitchen appliances,” he added.

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