The price of the TV sets and appliances may rise up to 3-10% as early s the week, with manufacturers growing striker rates to reflect the rupee depreciation and the recent increase in customs levies on imported washing machines and refrigerators.
Three senior industry executives said that companies had originally planned to raise prices as early as last month but finally postponed the move until after the festive season sales.
The top three brands are LG, Samsung, and Sony have already withdrawn the sales support of up to 10% they supplied to retail channels, and that went as a discount to consumers. Competitors brands like Bosch, Haier, Siemens, Xiaomi and BPL too are increasing rates.
“The price hike undertaken in September by some brands is going to get implemented now since brands did not want to affect any price changes during the festive season, and also to provide some cushion to offline retailers to combat the huge online discounting,” said by Kamal Nandi, business head at Godrej Appliances and president of industry body, CEAMA.
“It is impossible to cushion prices anymore since margins are badly hit,” added by Nandi.
Haier India President Eric Braganza said that the company has growth prices up to 5-8% this week has left them unchanged in the festive season. Samsung, LG, and Sony did not respond yet to e-mailed queries.
Industry executives said that when the big brands would typically offer sales support in Diwali, it has never been as deep as 10% offered this year to wrap the price increase. They said that the maximum support was for the premium range, that would also witness the maximum extent of the price increase.
Retailers are connected. Pulkit Baid, director of eastern India’s leading chain Great Eastern Retail said, “Brands withdrawing the support may adversely impact demand in these lean months.”
The industry said that when the rupee has gained in the past few days and margin pressures remain, oil prices have stabilized since the companies had last benchmarked cost at Rs.68.5 to the dollar.
At the end of September, the government has doubled the customs duties on washing machines and refrigerators up to 10 Kg capacity, and air condition to 20% and also raised duties on compressors.
Manmohan Ganesh, online exclusive BPL’s COO said that the prices would go up to 10 percent by upcoming month, with the company holding back on increases in the festive season since the online marketplace had requested to plus sales.
In the previous week, Xiaomi revealed price increases for its TVs by up to Rs.2000 for the rupee depreciation.
Gunjan Srivastava, MD at BSH Household Appliances that sells the Siemens and Bosch ranges in India, said by the company.
Best consumer electronics makers reported a good Diwali, with sales increasing by 12-25%. Demand was however hit at the onset of the festive season due to flood in Kerala in Onam and deep discounting by Amazon and Flipkart on Navratri-Dussehra.
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