Durables to see further price hikes as inflation soars
With inflation touching a 13-year high of 11.05 per cent, consumer durables are set to see a further rise in prices and industry players fear there could be a slowdown in demand.
By PTI |
NEW DELHI: With inflation touching a 13-year high of 11.05 per cent, consumer durables are set to see a further rise in prices and industry players fear there could be a slowdown in demand.
"With the rise in input costs we have to go for the price hike of around three per cent in March and now with inflation crossing double digit mark there is possibility of another hike of around two per cent across different segments," Godrej Boyce and Mfg Vice President Kamal Nandi told PTI.
He said the industry could witness a slowdown in demand with consumers spending more towards meeting daily requirements and postponement of discretionary buyings.
Echoing the similar sentiments, LG Director Sales and Marketing V Ramachandran said, "Entry level products in every category are likely to witness a slow down demand due to inflation".
LG had already increased the prices of its different products by up to 10 per cent on the backdrop of increasing input costs earlier this month.
Ramachandran said while that price hike did not slow down demand, the rise in inflation could have an impact on sales this time around.
Consumer Electronic Appliances Manufacturing Association (CEAMA), however, feels that the industry can maintain the growth momentum despite inflation.
"Consumer durable sector is maintaining a health growth inspite of inflationary pressure," CEAMA President R Zutshi said.
The industry players, although, said slowdown of demand may continue for the whole quarter till the advent of festive season in September.
"The slowdown of demand would certainly end with the advent of festive season in September where the postponement of discretionary buying would further result into a strong demand," Nandi said.
"With the rise in input costs we have to go for the price hike of around three per cent in March and now with inflation crossing double digit mark there is possibility of another hike of around two per cent across different segments," Godrej Boyce and Mfg Vice President Kamal Nandi told PTI.
He said the industry could witness a slowdown in demand with consumers spending more towards meeting daily requirements and postponement of discretionary buyings.
Echoing the similar sentiments, LG Director Sales and Marketing V Ramachandran said, "Entry level products in every category are likely to witness a slow down demand due to inflation".
LG had already increased the prices of its different products by up to 10 per cent on the backdrop of increasing input costs earlier this month.
Ramachandran said while that price hike did not slow down demand, the rise in inflation could have an impact on sales this time around.
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Consumer Electronic Appliances Manufacturing Association (CEAMA), however, feels that the industry can maintain the growth momentum despite inflation.
"Consumer durable sector is maintaining a health growth inspite of inflationary pressure," CEAMA President R Zutshi said.
The industry players, although, said slowdown of demand may continue for the whole quarter till the advent of festive season in September.
"The slowdown of demand would certainly end with the advent of festive season in September where the postponement of discretionary buying would further result into a strong demand," Nandi said.
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