During April 2021, complaints of online e-commerce platforms running out of stock of high-end home care gadgets were common
As people continue to rely on electronic appliances for activities like working from home and online education, leading consumer durables companies are seeing a significant surge in demand for premium products.
Suguru Takamatsu, Divisional Head, CSD, CE, Panasonic India said, “Confined within homes, consumers are now opting for value proposition products that help them multi-task while adding comfort, convenience, connectivity and now, safety.”
For brands like LG, the contribution of premium appliances is currently in double digits, with a gradual rise in demand for their appliances across their smart 4K TVs (43 inches and above), connected range of ACs (HU series), refrigerators (400 litres and above) and washing machines (8kgs or above).
During April 2021, complaints of online e-commerce platforms running out of stock of high-end home care gadgets were common.
Top consumer goods companies say that demand for premium category products is likely to sustain as the lockdown has slowly begun to open. Analysts reckon that this uptick is also a consequence of pent up demand for high-end products, which is manifesting as the lockdown eases.
Kamal Nandi, Business Head and EVP at Godrej Appliances said, “During the first 20 days of July, we have seen demand in the premium segment for our appliances grow by almost twofold in comparison to general uptake in sales.”
Therefore, while sales have grown overall by 20 per cent, the premium segment has seen a 40 per cent growth. As a result, Godrej has already launched and is slated to launch a line of frost-free and 99.9 per cent germ-free appliances, to cater to this high-end demand.
Deepak Bansal, Head-Corporate Planning, LG Electronics India said, “In products growth of fully automatic washing machine is high compared to semi-automatic washing machine; double door refrigerator compared to the single door; bigger screen sizes compared to smaller screens. As people are spending more time at Homes they are looking to upgrade for consumer durables.”
According to Natasha Trikha, Research Analyst at Care Ratings, high growth numbers in the premium category could be a bit artificial as they are a consequence of low base effect as a result of muted demand for the premium products, during the first quarter of FY21.