Electronic goods makers are going all out to attract customers this festive season.
The festive season In India lasts from August to November, when Onam, Dussehra and Diwali are celebrated. Then, there is Christmas in December.
Since August and September sales were weak, appliance makers are hoping to make up for the lost revenue because of COVID-19 in October and November. On offer are no-cost or interest-free EMIs, electronic goods on purchase of appliances, and exchange offers on old products.
The white goods market in India, currently worth about Rs 60,000 crore, is growing around 15 percent every year. However, 2020 has been a different year as COVID-19 led to a 65 percent decline in revenue in April, May and the first half of June.
Even as sales resumed ahead of Onam in August, offline sales continue to be slower. Moneycontrol had reported how Onam sales were not as expected
due to sudden lockdowns in parts of Kerala. E-commerce platforms, on the other hand, have seen close to 40 percent increase in appliance sales.
Every year, sales worth Rs 4,500 crore are clocked between August and December. This accounts for almost 50 percent of the annual sales for consumer durables firms.
Flexible payments and cashback
Appliance makers are cognizant of the fact that there have been massive job losses and pay cuts across sectors.
Eric Braganza, President, Haier India, said that the brand will be offering flexi-financing schemes across product categories. He added that there will also be extended warranties on appliances.
Samsung, the country’s largest consumer electronics brand, is offering a cashback of up to Rs 20,000, and easy EMIs starting from Rs 990. This will be valid till November 20, 2020.
On washing machines, Samsung is offering a cashback of up to 20 percent on the newly launched Samsung Washer Dryer models and up to 15 percent on select Flexwash and Addwash washing machines.
When it comes to Samsung air conditioners, consumers will get cashback offers of up to 20 percent and easy EMI options starting at Rs 990 on its wind-free air conditioners, along with a 5-year warranty on the condenser and PCB controller warranty on convertible range models.
In the oven category, those buying products from the brand shops will get one EMI off and cashback up to Rs 6,000.
Hitachi has a special offer, wherein customers can own a refrigerator or air conditioner for a down payment of Rs 1. This offer is available on select models and the finance is at the sole discretion of the financer.
Consumers can avail up to 10 percent cashback with Axis Bank’s credit/debit cards on purchase of Hitachi air conditioners and refrigerators.
“The need to stay at home and remote working has also boosted the demand to maintain thermal comfort at home. Our festive offers come as an add-on value for customers,” said Gurmeet Singh, Chairman and Managing Director, Johnson Controls-Hitachi Air Conditioning India.
All brands are placing a special emphasis on financing and have also tied up with banks to provide cashbacks across purchases.
Godrej Appliances has a fixed EMI scheme starting at Rs 900. The brand is offering a free extended warranty worth up to Rs 3,559. There will also be a cashback of up to Rs 6,000 (with select bank partners), up to Rs 10,000 off on price and interest-free EMI on all leading credit/select debit cards.
New types of interest-free finance schemes
In partnership with non-banking financial companies (NBFCs), appliance makers are also offering finance schemes like 8/0, 12/4, 15/3 and 18/6 amongst others.
Here 8/0 means that after a down payment, there will be eight equated monthly installments.
Similarly, 12/4 means that the customer has to pay four months’ EMI upfront and the rest as EMIs. The same principle works for 15/3 and 18/6 financing schemes with no interest.
Product upgrades and gifts
Appliance makers are also offering complementary accessories and electronic goods with every purchase. A few are offering it for free while others are giving it for subsidised rates.
Avneet Singh Marwah, Director and CEO, Super Plastronics (official brand licensee of Kodak and Thomson brands in India), said that despite the increase in panel prices, Kodak would be an affordable Android television during the festive season.
“We will be announcing upgrades in our products, and, for the first time, Kodak will deliver in more than 19,000 pin codes,” he added.
White goods major Panasonic will install LED televisions above 21 inches for free. Those buying select washing machine models could get a microwave oven worth Rs 1,999 (excluding GST). Those buying a Magnetron Convection microwave oven would get free gifts such as start-up kits, hair straightener worth Rs 290 (excluding GST) among others.
All their offers are valid till November 20.
For Panasonic cameras, there is a COVID-19 insurance
up to Rs 1 lakh on select models, and also assured free gifts such as battery & SFU2 (upgrade software key) on select models.
Suguru Takamatsu, Divisional Head – Consumers Sales Division, Panasonic India, said: “Through our new festive offers, we aim to benefit consumers by offering a combination of quality products at great pricing, along with added rewards, which we expect will drive an uptick in demand. We are hopeful that the festive season will help recover the deficit incurred in the last few months due to the pandemic.”
Samsung is offering free smartphones with its television range during the festive season.
During this offer period, consumers will get Samsung’s flagship foldable smartphone Galaxy Fold when purchasing an 85-inch (216 cm), 82-inch (207 cm) and 75-inch (189 cm) models of Samsung QLED 8K TVs. Also, they will get a Galaxy S20 Ultra with 75-inch and above QLED TV models, a Galaxy A21s with 55-inch QLED and 65 inch UHD models and a Galaxy A31 with 65-inch QLED, QLED 8K and 70-inch and above Crystal 4K UHD TV models.
Customers will get a Galaxy Note10 Lite free while buying Samsung’s flagship Spacemax Family Hub refrigerator.
Raju Pullan, Senior Vice President, Consumer Electronics Business, Samsung India, said that this festive season, celebrations will be mostly at home as consumers continue to be cautious. He added that their offers will help meet customers upgrade their appliance needs.
All appliance makers will also be partnering with e-commerce giants Amazon and Flipkart during their festive sales.
Amazon’s Great Indian Festival
begins on October 17 and would run for one month. Flipkart’s Big Billion Days will be from October 16-21. The white goods makers will announce their sales offers on these portals only during the sales period.