Top consumer electronic companies such as LG, Samsung, Haeir and Whirlpool told Business Standard that they are in no position to offer discounts.
The festive season, which starts in August with Onam and ends in November with Diwali, is important for the country's Rs 32,000-crore (Rs 320 billion) industry - it records almost a third of its annual sales during these months.
"We will try and create excitement in the market around the festival period. However, I do not see price cuts as a tool towards this," said Ravinder Zutshi, the deputy managing director of Samsung India.
Consumer electronics firms have seen a sharp rise in input costs because of the unprecedented rise in global commodity prices. But they have not been able to pass on the price rise to customers, thanks to the rise in interest rates, which has slowed down demand.
As a result, companies are looking at ways other than discounts and price cuts to stimulate the market. Whirlpool will organise the 'Yellathilum Magic Returns' programme in Kerala during Onam. This programme was first conceptualised last year and the company hopes to replicate the success of the initiative this year.
A lucky draw will be held for all buyers of Whirlpool products. A man dressed as Mahabali (whose homecoming is celebrated every Onam) will visit the homes that have been chosen in the draw with gifts. The company will also launch attractive Diwali promotions, details of which are yet to be finalised.
"We have aggressive plans in place for the festival season as we realise the customer has already taken a hit with the recent price hike. Therefore, we are considering options to keep his spirits high," said RT Rajan, director (sales and marketing), Haier Appliances India, adding: "Apart from launching new products during the season, we are also trying to strengthen our existing categories, and increasing our focus on the premium category of the market."
LG Electronics wants to focus on customer experience, technology and after-sale service. "For a marketer, delivery on these parameters gains greater importance than enticing consumers with short-term benefits such as gifts," said V Ramachandran, director (sales and marketing), LG Electronics India.
Philips will invest in advertising and retail merchandising such as product leaflets, banners and posters to lure consumers at the point of purchase, while Sony India is betting big on combo offers.
Still, not everyone is hopeful. "The impending price increase in CTVs because of the anti-dumping duty will definitely have an adverse impact on consumer sentiment in the market in the months leading to the festivals," says a member of Consumer Electronics and Appliances Manufacturers Association.
Still others pointed out that last year too manufacturers had adopted a similar strategy but that was at a time when sales were steady and consumer sentiment was quality- and performance-oriented. But with the recent rounds of price hikes, consumers were expecting discounts this festive season.
