Heatwave hustle: From soda pop to AC tops, summer sales soar for e-commerce companies

Last month, Skymet, a private weather services company, said El Nino, which is the warming of the ocean surface, or above-average sea surface temperatures in the central and eastern tropical Pacific Ocean, would intensify heatwaves in India this summer. Heatwaves typically occur from March to June and in some rare cases, even extend till July in India. States such as Maharashtra, particularly the Vidarbha region, Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Kerala and Rajasthan experience temperatures exceeding 45°C. Between 2016 and 2022 temperatures soared to over 50°C in some regions, followed by the harsh summer of 2023, which became the second warmest year on record.

Even Bengaluru, which is known for its pleasant weather, broke previous records. After reaching 36.6°C on March 30, the hottest it has been in that month in the past five years. Bengalureans are feeling the heat and to cope with that, they are relying on air conditioners (ACs), coolers, and faster fans which has sent e-commerce sales soaring.

Also read: Heatwave alert sends Voltas, Havells stocks simmering, but experts rule out correlation

Beating the heat

As temperatures rise, consumers are actively seeking innovative solutions to stay cool while prioritising energy efficiency and affordability. New-age direct-to-consumer (D2C) companies like Atomberg, which makes smart fans, are also seeing an uptick in sales.

“On a year-on-year (YoY) basis, we have grown around 35 percent around this time. Until the third week of March, the demand was dull but we’ve seen good momentum after that…demand is evident from the recent sell-out we have seen across channels and different geographies,” a spokesperson for Atomberg told Moneycontrol.

The company, along with several others said that warm days are here to stay which will propel sales further. “We expect the April-June quarter to be better than expectations,” the spokesperson added.

Both Flipkart and Atomberg said that while demand in the south was stronger at first, now even northern states are feeling the heat. Customers are not just shopping online, they’re also going back to the brick-and-mortar stores, underscoring that the need for physical stores remains strong.

“This summer has started on a very strong note. Due to the harsh summer, we have already seen a 2X growth over the same period last year. The same trend is seen in the air-coolers too…we expect bumper sales this year,” Nilesh Gupta, Director, Vijay Sales, said.

Due to attractive offers and more credit lines, customers are also opting for upgrades since their old machines no longer serve the purpose.

“Many consumers are also upgrading to the more efficient inverter air conditioners from their seven-plus years old energy guzzler machines,” Gupta added.

Cold drinks fly off the shelves

While people are buying more ACs, fans and coolers, other coolants like aerated drinks and ice creams are also in demand.

“There has been a noticeable uptick in the preference for aerated beverages, reflecting the desire for convenient and refreshing options to beat the summer heat. Flipkart Grocery has witnessed the increasing demand for grocery items from customers nationwide including Tier-2 and beyond, particularly aerated drinks, to help consumers stay refreshed and cool during the warmer months…we have witnessed a steady growth in demand for soft drinks and aerated drinks, with heightened demand from North and East regions, over the past couple of weeks,” a Flipkart Grocery spokesperson said.

The demand will only pick up in the months to come as summer grips several Indian states.

A Swiggy Instamart spokesperson said that there has been a 28 percent growth in the sale of cold drinks and juices while ice cream sales have increased by 43 percent when compared to a month ago.

Support to delivery workers

As sales of all items from ACs to sodas soar, there will be more delivery partners fulfilling demand in the scorching heat. Several companies said they’re distributing glucose beverages, opening more slots early in the morning and setting up shelters for delivery partners during the day.

“To help tackle the summers, delivery partners have access to pit stops across Swiggy Instamart pods stocked with buttermilk and other cooling beverages. Delivery partners have access to T-shirts made with 100 percent breathable dry-fit mesh fabric to offer protection from the harsh sun,” a company spokesperson said.

The demand for several products will only shoot up from here as IMD predicted that temperatures are set to be above normal and India will experience more heatwaves than it usually does.