High prices, erratic weather dampen AC, cooler sales in Indore

Indore: Sales of air conditioners and air coolers have remained sluggish in Indore so far this summer, with erratic weather conditions and a sharp rise in prices impacting consumer demand during what is typically the peak season for cooling appliances.Traders said that prices of coolers have increased by 10 percent to 14 percent, while air conditioners have become costlier by 14 to 16 percent this season, leading to a cautious buying sentiment among consumers.Owner of an electronic showroom in Patnipura, Dilip Mehta, said that demand has been weak despite the onset of summer. "Consumer demand is very weak this season so far. Prices of almost all companies and models of ACs and coolers have gone up, which is affecting conversions," he said.Industry players said that rising input costs have added pressure on manufacturers, further pushing up retail prices. Key raw materials such as copper and compressors, along with higher compliance costs due to stricter energy efficiency norms, have increased production expenses."High prices and erratic weather conditions are hampering consumer demand. Prices have gone up sharply this season due to increased raw material costs," owner of an electronic outlet at MTH Compound, Girish Lalwani, said.MTH Compound, one of the city's key appliance markets, houses around 40 electrical appliance shops.Consumers too are holding back purchases."We were planning to buy a new AC this month, but prices are much higher than last year, and the weather hasn't been consistently hot yet. We are waiting for some time before deciding," said Rahul Sharma, a resident of Vijay Nagar.Retailers said that summer and the ongoing wedding season usually drive strong demand for air conditioners, coolers, refrigerators and other appliances, both for household use and as gifts. The delayed heat and price rise have, however, slowed early-season sales with traders now hoping for a sustained rise in temperatures to revive the demand.
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