Diwali Surge For Premium Appliances Points To A Familiar Stress

According to estimates by market intelligence firm GfK, the festival period contributes about 17–19% to annual sales of white goods. In the past 18 months, consumer durables manufacturers have raised prices by 25–30% to pass on the burden of higher commodity prices, rising freight charges, and rupee depreciation, among other factors, to the end consumer.

Yet, strong growth in the midrange and premium categories signals that more expensive options aren’t turning all consumers away. A section of shoppers is still spending, confidently defying levels of inflation.

Brands like Haier, Godrej, Whirlpool, and Panasonic have also seen stronger demand for large capacity washing machines, fridges, and large screen TVs while the mass segments remained under inflationary pressure.

AC sales were tepid during Diwali, but that, CEAMA’s Braganza said, is because it is an off-season. “Typically, AC sales pick up in the summers.”

Electronics retail chains like Reliance Digital and Vijay Sales also witnessed strong growth driven by higher bill values and conversions as more and more customers visited their stores on the back of promotional events, attractive offers, and festive buying.

Mobile phones, TVs, and washing machines did particularly well with 30% year-on-year growth in the July-September period, said Gaurav Jain, head of strategy and business development at Reliance Retail, in a recent post-earnings call.

JioMart Digital, he said, clocked 25% growth in the September quarter over the June quarter, driven by large appliances.

Vijay Sales reported a sales growth of nearly 15% this festive season, driven by large television sets, microwaves, mobile phones, and laptops.

“Volumes also grew 11% after several months of tepid growth,” said Nilesh Gupta, director, Vijay Sales.

Early data from the Retailers’ Association of India indicates that consumers also shopped for appliances weeks prior to the main festivities of Diwali. In September, which saw festivals like Navratri and Onam, sales of consumer durables and electronics rose 30% over the corresponding period of 2019.