Stories
Appliance Makers Eye Double-Digit Festive Growth Despite Price Hikes
- •Appliance manufacturers anticipate double-digit sales growth during the festive season, driven by premiumization, replacement demand, and easy financing, despite a 5-8% price increase.
- •The price hikes, the third this year, are due to rising costs of raw materials like copper, aluminum, steel, crude derivatives, and increased freight expenses.
- •Industry executives expect consumers to opt for larger-capacity, feature-rich, and energy-efficient appliances, supporting value growth even with higher prices.
- •Companies like Haier India project significant growth, with Haier expecting 30-35% growth in festive sales by value and 20% in unit sales.
- •Manufacturers are optimistic, citing strong pre-festive inquiries, improved affordability post-GST rationalization, and special EMI schemes to boost demand.
Key Questions Answered
Manufacturers have increased appliance prices by 5 to 8 percent due to rising costs of copper, aluminium, steel, and crude derivatives, alongside higher freight expenses and currency fluctuations. This marks the industry's third round of price revisions in 2026.
Despite the price increases, appliance makers are optimistic about recording double-digit growth in festive sales. Haier India expects 30 to 35 percent value growth, while Sony India anticipates overall value growth of around 15 to 20 percent, driven by premiumisation and easy financing.
Dealers and distributors stocked up on inventory at older prices through pre-buying schemes in August and September, which is expected to keep products available at existing prices for about a month to a-month-and-a-half before new prices fully take effect.
