Due to heavy rainfall in May, the home appliances market faced losses due to poor sales.
If you have been optimistic about the recent fall in inflation, hold on. White goods manufacturers have been steadily increasing their prices for the past couple of years, and this trend is expected to continue this year as well. The prices of consumer durables such as air conditioners, refrigerators, smart TVs, and washing machines are anticipated to increase. Moreover, a further price hike is predicted in the latter half of the fiscal year 2024 due to uncertainty surrounding a normal monsoon.
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According to Kamal Nandi, Business Head and Executive Vice President at Godrej Appliances, the prices of major consumer appliances such as air conditioners have risen by over 30% since late 2020 when the inflation cycle began. Nandi mentions that the costs reached their highest point in mid-2022, but there has been a slight decrease in component prices since then. However, due to the ongoing uncertainty, it is challenging to make predictions beyond the next three months.
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Avneet Singh Marwah, the CEO of Super Plastronics, which manufactures and sells smart TVs under the Thomson and Kodak brands, warns of an upcoming wave of price hikes. Marwah highlights that there has been a significant surge of 30-35% in the prices of LED panels over the past four months. As a result, they are considering raising TV prices by 7-10% starting in June.
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Contrarily, Blue Star, an air conditioning company, is not inclined to increase prices. The company anticipates a challenging summer season this year, as indicated by the forecast from the IMD (Indian Meteorological Department), which is expected to drive more sales. This holds significance as home appliance firms, including AC manufacturers, have faced significant setbacks during the past three summers due to the impact of Covid-19. In 2021, AC sales experienced a decline of 10-12%. Although the market rebounded to 9 million units per year in 2022, up from 8 million in 2019, companies remain cautious as higher prices may discourage potential buyers.
