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Rising input costs in durable affects sales

India's consumer durable industry reported one of its worst performances in 2011


January 11, 2012  |  comments ( 0 )  | 
Rising input costs in durable affects sales

India's consumer durable industry reported one of its worst performances in 2011, growing slower than even the recession years of 2008 and 2009, as frequent price increases due to higher input costs and weaker rupee put off several potential buyers.  ­ LG, Samsung, Godrej, Videocon and Akai missed their 2011 revenue targets for refrigerators, washing machines and televisions by up to 15 per cent, after a disastrous October-December quarter, when sales fell by up to 30 per cent year-on-year, company executives said. They plan to focus on premium segments, which are less impacted than mass-market products, this year.  "First, the summer played spoilsport, then frequent price rises due to commodity inflation took a huge toll on sales of mass products, and finally the falling rupee further increased prices, thereby scaring consumers away," he said. ­Companies have cut production by up to 20 per cent as retailers are still saddled with last year's inventory, especially air-conditioners, LCD televisions and refrigerators. 


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