Consumer durable firms expect 35 % growth during festive season

Consumer durable makers are expecting up to 35 per cent growth in the upcoming festive season as the sector eyes a rebound from a prolonged slump, says a PTI report.
 Consumer durable firms expect 35 % growth during festive season

Consumer durable firms expect 35 % growth during festive season

Consumer durable makers are expecting up to 35 per cent growth in the upcoming festive season as the sector eyes a rebound from a prolonged slump, says a PTI report.

To attract buyers the durable makers are offering freebies like hard disk drive, DVD players, carrying case and accessories. Discounts, cash back and extended warranty schemes are also being employed to boost festive demand, the report states further.

Sony, which is expecting sales of Rs 5,100 crore during the August to November period, has earmarked Rs 250 crore for its marketing budget push sales.

Sunil Nayyar, Head Sales, Sony says, "Coupled with the boost in the customer sentiment, we are expecting to close the festive season with sales of Rs 5,100 crore with a growth of 25 per cent over corresponding period last year.”

Besides, South Korean maker LG is expecting 35 per cent jump in sales during the festive sales due to positive sentiments. "We are witnessing boost in consumers' confidence on hope of an economic recovery. Consumer sentiment is picking up and we are very upbeat," said LG India, VP Sales, Sanjeev Agarwal.

Industry officials also feel that the new government has ushered in a sense of greater stability in consumers.

Commenting on the festive expectations, Panasonic India, Managing Director, Manish Sharma said, "We believe that the new government has resulted in a higher consumer confidence and stable rupee, which will definitely lead to an upsurge in sales this season.”

Panasonic, which is expecting 25 per cent sales growth as compared to the same period last year, is spending Rs 85 crore for the marketing initiatives and has run special campaign during the festive season on its Viera range of TV, microwaves, refrigerators and washing Machines.

However, Shantanu Dasgupta, Vice-President Corporate Affairs and Strategy Asia South, Whirpool India says there is optimism in consumer sentiment but it would not be as good as 2009 and 2010, when industry had posted 30-40 per cent growth.

"We see a certain sense of optimism in consumer sentiment. The reality, however, is that cost of living has gone up, food inflation is high, and interest rates have not come down," he said.

Whirlpool of India is expecting 20 per cent growth in volumes during September to November and would spend Rs 12 crore on media campaigns.

Companies are also adding new products in their line up before the onset of the festive period and offering interesting mix of promotional offers on their flagship products.

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