Appliance makers are pinning hopes on the 2021 festive season to mark a revival in business. While customers continue to buy online, physical stores still contribute close to 70 percent to the industry’s revenue.
To boost consumer purchase sentiment amidst COVID-19, appliance makers are wooing buyers with extended warranties, cashback and easy financing schemes.
This is ahead of the festive season and Independence Day sales that begin from August 14 onwards.
Onam kicks off the festive season sales in India. Sales during the 10-day festival offers a glimpse of how the rest of the festive season could pan out for consumer durables firms. This year, it began on August 12.
The white goods market in India, currently worth about Rs 65,000 crore, is growing around 15 percent every year. Close to 55-60 percent of the annual sales is clocked during the August-December period, commencing with Onam sales and then during Diwali, Christmas and New Year.
As this year marks 75 years of Indian independence, consumer durables brands are paying special attention to the armed forces.
Consumer electronics brand Samsung is celebrating this Independence Day, with a brand new initiative for defence personnel.
As part of this scheme, serving and retired defence personnel can now avail Canteen Stores Department (CSD) rates while buying Samsung TVs and digital appliances such as air conditioners, refrigerators, microwaves, and washing machines. This is available at select Samsung Smart Plaza stores as well, in addition to CSD depots.
These Samsung Smart Plazas offer the full range of consumer electronics. These stores feature Samsung Experience Consultants for consumers to get live demos and a detailed understanding of product features.
Raju Pullan, Senior Vice President, Consumer Electronics Business, Samsung India, said: “Keeping in mind the upcoming festive season, Samsung has created a one-of-its-kind initiative by offering CSD benefits at Samsung Smart Plazas to defence personnel and their families. This Independence Day, our endeavour, through this programme, is to create an intimate brand experience by enhancing shopping convenience for them.”
Festive sales hopes
In 2020, the fears of COVID-19 led to erratic store timings and localised lockdowns across the country. Districts with a positivity rate of above 5 percent would announce timing changes for stores every week.
This had led to an impact on festive sales at offline channels. However, online appliance sales through Amazon and Flipkart stayed intact.
Appliance makers are pinning hopes on the 2021 festive season to mark a revival in business. While customers continue to buy online, physical stores still contribute close to 70 percent to the industry’s revenue.
At BSH Home Appliances, which sells products under Bosch, Siemens and Gaggenau brands, there are offers for the Independence Day and upcoming festivals.
Neeraj Bahl, MD & CEO, BSH Home Appliances, said that this is part of their festive campaign–Har Din Muharat August 2021.
“We have a super cashback offer between August 8-22. There is also a three- year additional warranty for Rs 999 and this offer is valid till November 30,” he added.
There is also EMI options like 8/0 and 12/4. Here, 8/0 means that after a downpayment, there will be eight equated monthly instalments. Similarly, 12/4 means that the customer has to pay four months’ EMI upfront and the rest as EMIs.
BSH Home Appliances is also offering up to 14 percent cashback for Bosch and Siemens products. In addition, Bahl said that there are also combo offers for hoods and mixers, microwave/oven plus juicer among others. There is an exchange offer of up to Rs 1,500 for small appliances.
At Voltas, there is an Onam Celebration Offer for its customers in Kerala. Recognised as the fastest-growing consumer durables market in India, Voltas said that Kerala is an important market for the brand.
As a part of the festival offer, Voltas is offering a combination of cashback offers, five-year comprehensive warranty, and easy EMI schemes to make the buying process attractive for Onam customers.
With an endeavour to increase access to all its products, the brand has introduced multiple finance offers, which include cashback up to 15 percent on select credit cards and easy EMI finance offer through non-banking financial companies. The offer commenced on August 1 and is valid till August 31.
Pradeep Bakshi, MD & CEO, Voltas Ltd, said: “As a leading brand in Kerala, our presence in Kerala has always been important. As a Tata Group company, we will continue to introduce products with superior technology that cater to the needs of our customers.”
South India contributes close to 25 percent towards the air-conditioning and home appliances industry, and Kerala is the fastest growing market for the industry.
In 2021, while the appliance makers were expecting a pickup in summer sales, the second wave of COVID-19 led to a steep decline in revenue in March, April and May. White goods firms are anticipating to make up for the lost revenue during festive sales.
