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Festival season brings good tidings for consumer durables marketers

Festival season brings good tidings for consumer durables marketers

Author | Rosy Ngaithe & Pallavi Goorha | Thursday, Nov 22,2007 6:10 AM

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Festival season brings good tidings for consumer durables marketers

The discounts might not have been as exorbitant as the previous years nor had the gifts been spectacular, but the white goods marketers achieved their sales targets and more during the Diwali season just gone by. exchange4media spoke to some major players in this sector like LG Electronics, Samsung, Philips, Videocon, Hyundai Electronics and Whirlpool, all of whom have reported hike in sales this year.

Pradeep Tognatta, Director-Sales and Marketing, Samsung India, said, “We registered a 41 per cent growth in sales during the festival period. Our festival sales were led by product categories like LCD TVs, flat TVs and frost free refrigerators.” Samsung achieved their targeted sales of Rs 1,200 crore during the promotion period, thereby achieving a growth of over 41 per cent during this festival period.

The company has exceeded their targeted 50,000 units of LCD TVs by selling additional 5,000 LCD TVs with 246 per cent growth this season. Samsung also sold 500,000 units of flat TVs, thereby achieving a growth of 33 per cent over the festival period sales last year. The growths achieved in the other categories are 60 per cent in refrigerators, 37 per cent in washing machines, 64 per cent in air-conditioners, and 30 per cent in microwave ovens.

Rakesh Sharma, Division Head-DAP (domestic appliances and personal care), Philips Electronics, said, “The festive season contributes 15 per cent of our annual sales. This year they have grown twice as much as the industry growth rate, which is 12 per cent, particularly in the small domestic appliances category that includes juicers, mixers, grinders, ovens, rice cookers, water purifier, irons, bar blenders, coffee makers, etc.”

LG Electronics, recorded sales revenue of Rs 1,132 crore, an increase of 51 per cent compared to sales revenue of Rs 749 crore during last year’s festive season. LG Electronics recorded 78 per cent growth in its home appliances business. The company recorded an 85 per cent value growth in refrigerators, 96 per cent growth in washing machines and over 85 per cent growth in microwave ovens and 41 per cent growth in air-conditioners. LG’s contribution to consumer electronics category this festive season alone has seen a growth of 70 per cent over the same period last year.

V Ramachandran, Director-Sales and Marketing, LGEIL, said, “The bold step initiated this season to break away from competing on the platform of price offers and gifts, and instead focusing on the consumer to choose on the basis of quality, customer care and trust has paid us rich dividends. This was based on our confidence in the evolving Indian consumers shifting their preferences towards exercising affirmative choice to buy high quality reliable products rather than bargain hunting.”

“Videocon sales rose by 29.3 per cent profit, compared to last year’s figures. Colour TVs, refrigerators and washing machines have been our leading volume drivers. This year, Videocon made 31.7 per cent sales in CTVs, 29.3 per cent sales in washing machines and 28.5 per cent sales in refrigerators,” informed Sunil Mehta, Joint President, Videocon Industries Ltd.

Sukhpreet Singh, General Manager, Brand Marketing, Whirlpool India, said, “Whirlpool believes in consumer centric initiatives. Keeping this goal in mind, we announced a first-of-its-kind Diwali promotion – ‘Whirlpool Magic Chalao, Dream Home Sajao’. We have surpassed our Diwali sales targets and have grown by more than 30 per cent in our key categories in October and in the first two weeks of November.”

Singh further said that all these categories – refrigerators, washing machines and clothes dryers – witnessed a hike during the festive season. This could be attributed to the new products in these high-end categories launched by Whirlpool.

Hyundai Electronics concentrated on CTVs and sold around 25,000 units this Diwali season, out of the total 40,000 units, growing by 50 per cent over last year during the same period in sales for CTVs.

Eric Braganza, COO-Hyundai Electronics, said, “We were really pleased with our performance this Diwali. The encouraging aspect for us was the secondary movement of the products across the dealer outlets. The success can be attributed to the correct mix of product availability and advertising in press, Internet and consumer offer.”

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