With peak summer picking up fast in most parts of the country, the demand for ACs, coolers and refrigerators have also soared.
Industry players are looking at the best summer in last 10-15 years with the sector expected to record a more than 30% growth over last year. Last year, the AC market grew 15%, while refrigerator sales were almost flat.
Several ice-creams and cold beverage players too expect sales to jump 20-30%. Riding on the summer heat, ice cream maker Baskin Robbins is expecting a year-on-year sales growth of close to 20% this season. Demand for the brand’s sundaes and dessert options have increased manifold.
Naturals Ice Cream is seeing a double-digit growth across all zones and aims to close the season with a 30% growth over last year. Its tender coconut and mango-flavoured ice-creams are flying off shelves. E-commerce has grown significantly, and due to the heat wave, consumers are preferring home consumption during day time.
Beverage giant Coca Cola is ramping up distribution to reach more consumers. Tang claimed that the year has started on a strong note. As it competes with a bevy of other players in the market, the brand is trying to build engagement with consumers through presence across touch points.
There is an inflationary pressure on the mass markets and therefore consumption of discretionary products is under pressure. But given the type of heat being witnessed across the country, refrigerators or ACs have no longer remained a discretionary category. It has become a necessity. Heat is beating inflation.
In the consumer durables space, overall demand is driven by AC, but the category being premium in itself, entry-level products are finding more space in consumers’ shopping carts, with consumer finance playing a crucial role.
For Blue Star 90% of the customers purchasing ACs are first-time buyers of the product and about 60% of them are from small towns. Within households, ACs can be installed in multiple rooms and therefore the growth potential of the category is huge.
Haier Appliances India has projected a 35-40% growth in sales of ACs and 30% for refrigerators this (entire) year while for Godrej Appliances, the refrigerator category is clocking a consumption growth of more than 30% while ACs are seeing a growth of 60%. Brands are balancing both trends (premiumisation and mass market) by diversifying their portfolio.
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