Festive season dhamaka! Premium consumer electronics witness robust growth

The Indian consumer electronics and durable industry have kickstarted the festive season on a high note. With the festive sales commencing with Independence Day and Onam and lasting till December, the industry is witnessing high sales for premium devices compared to entry-level.

Kamal Nandi, Business Head and Executive Vice President – Godrej Appliances, part of Godrej & Boyce, told Business Today, “We have been witnessing growth in premium segments and slow-down in mass segments for some time now across geographies and channels. Inflation has affected consumer sentiment in the mass segments while premium segments remain buoyant. The premium mix in the total contribution is expected to double this year compared to pre-pandemic years. YTD August data re-establishes the premium trend with Frost Free refrigerators and Fully Automatic Washing Machines continuing to grow much faster.”

According to the industry, the categorisation of premium appliances varies with every category. In refrigerators, anything above 350 litres is referred to as the premium. And while a 350-litre refrigerator can be purchased for upward of Rs 30,000, side-by-side and French door refrigerators from leading brands now start at a starting price of Rs 60,000 for a higher capacity of 580 litres.  Similarly, in washing machines, fully automatic top load ( 8Kg and above) and fully automatic front load ( 7kG and above) qualify as premium. A Samsung 8.0 kg Ecobubble Top Load Washing Machine with an in-built Heater is available for Rs 27,500, whereas the LG 7.0 kg Fully Automatic Front Load Washing Machine with In-built Heater is retailing for Rs 34,991. 

Mohandeep Singh, Senior Vice President, Consumer Electronics, Samsung India, told Business Today, “In the premium segment, we expect a growth of 80 per cent as consumer preference is moving towards premium, lifestyle products this festive season.” Samsung’s festive growth will be led by its premium offerings, which currently constitute 35 per cent of its overall consumer electronics business.

Convenience, health & hygiene

There has been a significant increase in the demand for solutions that adds convenience to consumers' daily lifestyle & enhance Health & hygiene. Over the past few months, companies have seen good demand, especially for upgraded capacity and superior technology-led products. Consumers today are opting for premium appliances that add value and help them multitask.

“Consumers no longer want to settle for anything but the best, and that can be seen in the growing demand for larger-capacity appliances and the premium range of products. Going forward, we will continue to see an increased demand for a minimalist but premium range of products with an obvious focus on connected technology,” says Deepak Bansal- VP- Home Appliances & Air Conditioners- LG India.
 
Echoes Panasonic channel partner. A source, on the condition of anonymity, said: “We are seeing a rise in demand for appliances that are easy to use (allowing them to multitask), energy-efficient, connected (smart), and healthy and hygienic.”

Affordability

When it comes to consumer electronics, India is still very under-penetrated. Most citizens have yet to make their first refrigerator or washing machine purchase. And many, who invested in it about a decade ago, are in their upgrade cycle.
 
And while it’s the common consumer sentiment to purchase an advanced or a better model that they currently own, this is further fuelled by the affordability schemes and offers offered by the bands in partnership with banks. The zero-interest EMI schemes are an instant hit among consumers who are willing to stretch their budgets in favour of a slightly premium refrigerator, TV or washing machine over a basic or an entry-level model.