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May 25, 2001
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Money > Business Headlines > Report May 25, 2001 |
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Fridge, washing machines majors totter in 2000-01Reeba Zachariah The slowdown virus appears to have snared the white goods industry what with the refrigerator industry clocking a mere 5 per cent increase in sales volumes and washing machines sales remaining almost flat. According to the latest figures available from Cetma, refrigerator sales jumped to 3.1 million units for 2000-01 compared with 3 million in the previous year, against a 5.26 per cent jump in 1999-00. Cetma has projected refrigerator sales will rise to 3.2 million units this year. Washing machines sales, on the other hand, rose a mere 25,000 units to 1.3 million units last year. A senior BPL official said, "Consumers are not willing to spend at this moment with the recession in the market and are postponing their purchases." Eric Bragnaza, vice president, sales and marketing, Videocon International, said, 'There is only a marginal growth in both the categories as compared to our expectations of 15-20 per cent for each." Analysts said that second-hand refrigerators received through major exchange schemes offered by almost all large companies are sold in the rural market, which has affected rural sales. A Samsung India Electronics executive said, "There is also seasonality factor, whereby consumers are doing priority buying." Citing an example, she said, rather than buying a 29" CTV now, consumers are preferring to buy a home appliance product. However, Braganza says, "The market penetration for refrigerators and washing machines in the urban and rural regions are still low and so there is a scope for growth." Another factor is that 50 per cent of the refrigerator market takes place through replacement and when people buy or shifts to new flats. And in case of washing machines, Bombay-based dealers say it's a one-time investment and one need not exchange as there is not much change in technology and features. However companies have anticipated the stagnant demand in the market and aligned their production activities. But dealers said that there was a inventory pile-up with them as well as with manufacturers. Companies are hoping that the monsoon magic works, which will spur demand. Powered by YOU MAY ALSO WANT TO READ:
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