Consumer durables and electronics companies are witnessing a sharp spike in sales this Navratri, driven by pent-up demand and recent GST rate cuts. Several players report that online sales are outpacing offline growth.
“In the first eight days of Navratri, we have garnered 60 per cent year-on-year growth. This is due to huge pent-up demand since September 22,” said President, Haier Appliances India. “Premiumisation trends have strengthened across categories — whether refrigerators, LED TVs or washing machines. Overall, this festival season till Diwali, we are aiming for 30 per cent growth over last year.” He added that the GST cut is pushing consumers towards higher-spec products such as large-screen TVs and higher star-rated air-conditioners.
The surge follows weeks of subdued buying, as consumers deferred purchases in anticipation of the GST cut. Retailers expect this burst of demand to taper off in the coming days.
“Due to the lull before September 22, we are witnessing 2x growth across categories,” said Director, Vijay Sales. “We expect this pent-up demand to normalise by the end of this weekend. We anticipate ending the Diwali season with 20 per cent growth over last year,” he added.
Blue Star Managing Director noted, “We expect to end September with 20 per cent growth over the same period last year. Footfalls and sell-outs are strong on the ground.” Some players noted that appliances are moving faster on online platforms.
LED TV segment
The LED TV segment, in particular, has benefited from the GST cut. Market estimates suggest that, unlike last year’s flat or muted trajectory, the category is seeing robust gains this season.
“The LED TV segment is witnessing strong growth this festival season, unlike the past two years,” said CEO, Super Plastronics Pvt. Ltd. “The online channel is seeing stronger traction than offline. Besides GST cuts, attractive deals are aiding this growth. We expect the festival season to close with double-digit growth.”
