The festive season in India is the time for celebrations and cheer, and consumers spend considerably by buying new things ranging from new clothes, automobiles, and consumer durables. This festive time period starts from September and goes on till the last week of December.
Talking about consumer durables, the festive season is the big boost that every consumer durables, white goods, and home appliances company awaits, as huge demand is created with people making high-value purchases - both from online as well as offline platforms. Most of these companies push aggressive marketing campaigns and provide attractive offers during this period, to grab consumer attention and consideration.
Consumer durables can be broadly classified into three categories - major appliances or white goods, small appliances, and consumer electronics.
Major appliances are large home appliances used for regular housekeeping tasks such as cooking, washing laundry, food preservation, and others. They are generally equipped with special connections such as electrical, gas, plumbing, and ventilation arrangements, which limit the mobility of these appliances around the house.
Small appliances are semi-portable or portable machines that are generally used on countertops. Some of these appliances are air purifiers, humidifiers and de-humidifiers, blenders, clothes steamers and iron, electric kettle and coffee machines, and others.
Consumer electronics include devices used for entertainment, communications, and home-office activities such as TVs, music systems, and others.
Consumer durables manufacturers, whether single category small appliance makers or multi-category big consumer electronics makers indulge in huge advertising and promotional activities during the festive period. Recent market trends also point out that this year, brands are eyeing strong sales, and to maximize their share, brands have planned increased ad spends. They will be launching new advertising campaigns and appointing new brand ambassadors to reap benefits from their fan following and market value.
The festive months from September to December constitute an important decisive phase for these brands as they expect to reap maximum benefits of this increased ad and promotional spending. With more people now on digital platforms, brands are also marking their presence digitally by way of tie-ups with e-commerce platforms such as Amazon, Flipkart, Tata Cliq and participating in their shopping festivals.
This year's festive period is also significant for consumer durable brands, in view of the Covid-19 pandemic, as they expect a better revival than last year. With improving scenarios and decreasing infection numbers, brands are expecting huge footfall this year and recent surveys conducted also point in the same direction.
An online survey titled “Titled 'Festive Season Pulse 2021” conducted by Adtech firm The Trade Desk and YouGov revealed that this festive season, 91 percent of Indian consumers are planning a purchase during the upcoming festival season. This is a huge percentage for consumer durables as most Indian consumers prefer to buy these products during festive sales.
Talking about the industry, all major brands are expecting a surge in their sales numbers as this is the first proper buying season after a subdued Covid-affected last year which saw less consumer footfall in retail chains and showrooms due to Covid-19 restrictions.
Consumer durables have come a long way over the years. From being a luxury product, now every Indian household has many consumer durables, making them a necessity. The change has been accelerated due to various factors, the most important being increased consumer demand fueled by the increased buying power of these consumers.
Apart from consumer demand, other factors such as rapid urbanization, growth in the housing sector, improved living standards, the surge in need for comfort in households, as well as increasing number of smaller households have helped grow the durables market. Manufacturers are designing and developing new products with better technology, offering a wide range of options to choose from. The future of the consumer durables sector in India is bright as it is expected to grow and become the 5th largest market in the world by 2025, valuing around $30 billion.