Many consumer durable makers are set to increase prices by 5-8% from Oct owing to an increase in input costs. Pune: Pune: Consumers are rushing to pre-book air conditioners, televisions and refrigerators ahead of an expected price rise.
Kamal Nandi, business head at the appliances business of Godrej Enterprises Group, said, “Given the rising commodities prices the input costs have increased by 8-10% since our last price hike, resulting in margin pressure across categories. Consequently, we will be taking a 5-7% price increase in Oct, starting with air conditioners and refrigerators. ” To ease the impact of price increases and support consumer demand during the festive period, Panasonic is offering no-cost EMI, extended warranty, long-term finance and cashback offers across the range. For Panasonic ACs, we have implemented a price increase in the range of 6–8%,” said Abhishek Verma, head of product marketing & planning (AC category), Panasonic Life Solutions India.
I have decided to book an air conditioner for my new home now,” said Deepak Merchant, a resident of Wanowrie. Local retailers said some buyers are locking in current prices and scheduling delivery after Pitru Paksha. “They want to avoid making the purchase during the period but also want to protect themselves against the expected price hike,” said an electronics retailer in Wakad. Consumer durable makers said price rises are inevitable and they will be reflected in the market after new stock reaches stores. A manager at Pravin Agencies, an electronics store at Lullanagar, said, “There is good demand for large home appliances like ACs, washing machines etc.
“Even a small percentage increase can lead to a significant rise in overall prices. “We have taken a measured approach in response to the unprecedented increase in material costs. People are booking in anticipation of price hikes. Our overall discounting strategy will remain the same despite price rises.”
Kajal Damani, a resident of Hadapsar, was waiting for the festive sales to buy a new television. “It seems like overall effective discounts will come down if there is a price hike. We took a decision to book it from now and take delivery during Navaratri.”