Consumer durable firms rethink festive season playbook amid cost pressure & monsoon concerns

Pune: As India’s consumer durable sector approaches the crucial festive season, firms are actively recalibrating their strategies to counter headwinds like a patchy monsoon, rising input costs and cautious consumer spending.

Instead of resorting to steep discounts, firms are leaning on product innovation, launching energy-efficient and feature-rich appliances that promise long-term savings to attract value-conscious buyers. Many are also strengthening financing options through easy EMIs, zero-down-payment schemes and partnerships with fintech players to keep demand steady.

Sandeep Sehgal, director and head of sales at Panasonic Life Solutions India, said, “The industry may continue to see phased pricing adjustments. Panasonic is focusing on innovation, energy efficiency and flexible financing rather than aggressive price cuts.”

Industry representatives highlight a clear divergence in buying behaviour across segments. Premium television buyers, typically purchasing larger screens of 55 inches and above, continue to buy throughout the year. But, budget-conscious consumers tend to concentrate spending during festive promotions.

“The depreciating rupee, rising memory chip costs and the overall increase in the cost of doing business will affect budget buyers the most. While demand remains intact, many consumers are gravitating toward affordable premium products instead of postponing purchases altogether,” Devita Saraf, founder and CEO of Vu Televisions.

The summer season offered a temporary boost to categories like air-conditioners, coolers and refrigerators, aided by prolonged high temperatures. This momentum may, however, not fully carry into the festive period. Kamal Nandi, business head — appliances business at Godrej Enterprises Group, said, “The industry will be conservative given global uncertainties and currency volatility. Expectations of a below-average rainfall could impact rural incomes and festive spending.”

He added a prolonged summer could continue to drive demand for cooling solutions.

Wanowrie resident Natasha Malik said higher prices might lead households to reconsider big-ticket purchases. “Most retailers are offering EMI and exchange-based offers, so savings are not very significant,” she said.

Retailers said the delayed monsoon onset might actually help sustain footfall and sales momentum in the near term. “The industry has already started seeing some price increases, which may have slightly moderated volumes, but overall demand remains healthy,” Shibashish Roy, CEO and managing director of Infiniti Retail Limited, which operates Croma stores, said.

Roy said price pressures were expected to stabilise ahead of the festive season, maintaining confidence in consumer spending. “Festive demand has historically remained strong despite external challenges,” he said.