AC makers expect clicks to be quick in harsh summer

Air conditioner and air cooler brands like Daikin, Godrej, LG and Lloyd are hopeful that forecasts of an intense summer this year will spark a revival for high-electronics items in India's booming quick commerce market.

Sales of such items like smartphones and televisions have been a laggard in the instant delivery market so far with consumers preferring to visit physical retail stores or large ecommerce platforms like Flipkart and Amazon who have built their credibility and offer multiple promotions for purchases.


The share of smartphones to total sales is currently at less than 1%, according to market research firm Counterpoint Research. For feature phones, it is 2% while being a non-starter in the case of televisions.

Still, electronic companies are optimistic of higher AC and air cooler sales this summer.

The reason: as temperature goes up, consumers may look at impulse purchase of a new cooling machine, and with quick commerce slowly becoming a habit in cities, they may just indulge in a ten-minute delivery.

"AC is a low involvement purchase where decisions are made based on brand and energy efficiency star rating, whereas consumers prefer to touch and feel a smartphone, television and refrigerator," said a senior executive at a leading company. "Also, most of the ACs purchased are without any exchange offer due to low penetration. So, ACs and coolers have a high chance of success in quick commerce."

Kamal Nandi, head of appliance business at Godrej Enterprises Group, said the company is in talks with quick commerce platforms for retailing its ACs and coolers.

"Generally, plug-and-play products do good in quick commerce. While AC does need installation, we are working out the details. This season we will have a fair idea of the potential of white goods in quick commerce," he said.

To be sure, e-commerce contributed nearly 49% of smartphone sales in 2024, as per IDC India. Sales researcher NielsenIQ data showed online sales comprised 43% of laptop and tablet sales, 24% for washing machines, 12% for ACs, and 18% for refrigerators. For overall consumer electronic products, the share is 34%, the researcher said. This is largely from Amazon, Flipkart and online platforms of retail chains like Reliance Digital and Croma.

Counterpoint's research director Tarun Pathak said for high average- selling price products like smartphones, quick commerce is unlikely to become the preferred channel immediately. "May be in the future, it will, if consumers value convenience much more than at present," he said.

Tata-owned Big Basket launched electronics including smartphones in September, while Blinkit too started selling iPhones at the time, expanding into other mobile phone brands in January. Last week, Blinkit forayed into 10-minute AC deliveries and installation within 24 hours in Delhi-NCR with the Lloyd brand. Rivals Zepto and Swiggy Instamart too are selling smartphones and electronics.

Company executives say quick commerce platforms are currently keeping limited units in their dark stores due to space limitations though they are continuing to evaluate plans to open larger dark stores for electronics.