TV, consumer appliance prices to increase by 7% next month
TV and consumer appliance prices are set to increase next month as most consumer appliance manufacturers are reviewing prices in the aftermath of the festive season. The price review comes amid tight margins resultant of an increase input costs owing to the depreciation of the Indian rupee. Depending on the manufacturer, prices might increase by as much as 7%. Here's more.
This year, the consumer electronics and appliances sector in India saw almost flat growth owing to rising input costs. Barring washing machines, most appliance sales were flat while AC and TV sales saw a reduction in sales volume.
Although input prices had gone up owing to the Indian rupee's depreciation and increases in customs duty, manufacturers had not increased prices to ensure smooth sales during the festive season, which accounts for one-third of consumer appliance sales in India. However, with the festive season having passed, many manufacturers are set to revise their prices to reflect the increases in input costs.
In fact, the Consumer Electronics and Appliances Manufacturers Association (CEAMA) had approved a 3%-4% hike in prices of appliances in September, but that did not get reflected. With most brands vying for dominance in the market through aggressive pricing ahead of the Indian festive season, the price hike was not effected despite increasing input costs. Brands largely absorbed the impacts of rising input costs.
Speaking to TOI, top executives of Panasonic India and Haier India said that they were looking to increase appliance prices by 5%-7% in light of increasing input costs and tight margins. Godrej Appliances too is planning a price hike. The only exception, as reported, is Sony India, which said that it has no plans to revise prices any time soon.