Consumer durable cos eye 30% sales growth on festive demand
Top consumer durable makers such as LG, Panasonic and Samsung are expecting up to 30% growth in sales during this festive season buoyed by reduction in interest rates by banks.
In order to push sales, the firms are offering freebies like assured gifts, smart phones, blu ray players and sound systems, among others.
"Initial signs from the market are positive and we expect to grow more than the market rate during the festive season. Upbeat consumer sentiments and delivery of innovative products on a deep understanding of what people want will drive our sales growth," Rishi Suri, Product Marketing Head CE at Samsung India Electronics,.
The South Korean major is expecting up to 30% jump in sales during the festive season and planning to launch two new TV models in the 40 inch and 50 inch segment.
"While 32 inch segment will continue to show robust sales, we expect higher sales growth to come in the 40 Inch and above segment as customers tend to upgrade to larger screen sizes during the festive season," Suri added.
Rival LG is also bullish on festive season sales prospects.
"We are expecting 20 to 25% growth this festive season... Across categories we are expecting robust growth," LG India Head Corporate Marketing Niladri Datta said.
LG has already launched ahead of the festive season its new range of products across categories, including OLED TV, smart TV with Web OS technology, dual door-in-door refrigerator and washing machine with jet spray technology.
These companies feel that RBI's recent move to reduce key policy rate and subsequent interest rate cuts by different banks will help boost consumer sentiments.
"It will certainly help consumers to upgrade. This initiative will improve consumer sentiment," Datta said.
Echoing similar sentiments, Suri said:" The RBI action along with our attractive consumer finance schemes will certainly enable customers to upgrade to larger screen and more feature loaded TVs during the festive season."
The companies are also preparing to spend on advertisements to promote products during the festivals.
Panasonic India & South Asia Managing Director Manish Sharma said: "We have allocated a budget of Rs. 90 crore towards marketing activities this festive season."
"Media campaigns will run across print, TV, radio and digital. The digital medium will be an important platform for festive campaigns, we always try our best to engage consumers through innovative digital campaigns," said Datta.