IndiaRetailBiz

Thanks to sharp rise in input costs, consequent to unprecedented increase in oil price, large companies in the field of white goods like LG, Samsung, Sony, Philips, Whirpool, among others, according to a BS report, will to give miss to bargain discounts this festive season.

This is likely to have an adverse impact on retail sales of durable products like TVs, Home Theatre Systems, Refrigerators, Washing Machines, etc, as retail consumers wait until onset of festive season hoping that the companies would offer hefty gifts and bumper discounts during this period.

In fact, there is a strong possibility of  manufacturers increasing the prices of Television sets, consequent to imposition of dumping duty on imported picture tubes. Samsung is believed to have decided to increase the prices of TV sets by 5%.

In India, festive season which begins in August with onam in the South and Raksha Bandhan in the North lasts till Diwali in November. Many other festivals like Janmashtami, Ganesh Chaturthi, Navaratri, Durga Puja, and Dashhera which are celebrated in different parts of the country fall in-between.

Almost, one third of annual white goods sales estimated at around Rs 32,000 crore ($8 billion) are made during this period as not only people are in celebration mood but they have more disposable income available in their hands as most business establishments, both organised and unorganised, distribute incentives and bonuses during this period.

“We will try and create excitement in the market around the festival period. However, I do not see price cuts as a tool towards this,” said Ravinder Zutshi, Dy. Managing Director, Samsung India.

LG Electronics, on the other hand, would try to focus on customer experience, technology and after-sale service, as according to V Ramachandran, Director (Sales and Marketing), LG Electronics India, “For a marketer, delivery on these parameters gains greater importance than enticing consumers with short-term benefits such as gifts.”

“Apart from launching new products during the season, we are also trying to strengthen our existing categories, and increasing our focus on the premium category of the market,” said R T Rajan, Director (Sales and Marketing), Haier Appliances India.

While Sony India is likely to promote combo offers, Philips would prefer to put its money on advertising and retail merchandising.