Consumer durables prices to rise by 5-10% amid rising costs – World Affairs SRS

Consumer durables prices to rise by 5-10% amid rising costs

– World Affairs SRS

Prices of air conditioners and refrigerators rose in the new year as consumer durables manufacturers passed the impact of rising raw material costs and higher freight charges to customers, while prices of home appliances such as washing machines increased later in the 5-year period. An increase of 10 percent can be seen. month or until March.

Companies including Panasonic, LG, Haier have already reviewed the prices, while other manufacturers like Sony, Hitachi, Godrej Appliances may take a decision by the end of this quarter.

According to the Consumer Electronics and Appliances Manufacturers Association (CEMA), the industry hikes prices by 5-7 per cent from January to March.

With the unprecedented rise in the cost of commodities, global material and raw materials, we have taken steps to increase the prices of our products by 3 to 5 per cent across refrigerator, washing machines and air conditioner categories, said Satish NS, President, Haier Appliances India told PTI.

Panasonic, which has already increased prices for ACs by up to 8 per cent, is looking at further hikes. It is also considering a similar move for home appliances.

The prices of air conditioners have already seen an increase of around 8 per cent and may increase further depending on the rising cost of goods and supply chain. Panasonic India Divisional Director, Consumer Electronics Fumiyasu Fujimori said, “We may also see a reflection of price hikes for home appliances in the near future.

South Korean consumer electronics major LG, which has also hiked prices in the home appliances segment, said the continuing rise in raw material cost and logistics cost is a matter of concern.

Deepak Bansal, Vice President, Home Appliances and Air Conditioner Business, LG Electronics India said, “We have tried our best to absorb this through cost innovations, but for business stability, prices need to increase.

Describing the increase in prices as inevitable, Gurmeet Singh, Chairman and Managing Director, Johnson Controls-Hitachi Air Conditioning India said that brands will hike prices by up to 10 per cent by April due to increase in input cost including raw material, taxes. transportation.

In a phased manner, by April, the prices will go up by at least 8-10 per cent. Prices have increased by around 6-7 per cent this year from December last year, he said, adding that costs continue to rise and now with anti-dumping duty levied on aluminum and refrigerants, we see another increase of 2-3 per cent. From.

He said this would be higher than the actual commodity increase on these items and is unavoidable.

CEAMA President Eric Braganza said: “The industry had postponed the price hike due to the festive season. However, at present, manufacturers have no other option but to pass on the price hike to the customers. We expect Let us expect the industry to do a round of price hikes in the range of 5-7 per cent from January to March.

Braganza said implementation will vary from company to company as some manufacturers have already hiked prices and some are in the process of doing so.

Still, if demand is sluggish and raw material prices decline, there is a chance that we may see a reduction in prices in April or May, he said.

“We are optimistic and hopeful that commodity prices will eventually stabilize due to a reduction in global material and raw material costs, and this should have a positive impact on consumer demand.”

Companies like Sony and Godrej Appliances said they are yet to take a call.

Sony India Managing Director Sunil Nayyar said at the moment there is no chance of a price correction.

Godrej Appliances Business Head and Executive Vice President Kamal Nandi said that the company will evaluate any further increase in view of the current fall in demand due to rising corona virus infection rate.

Super Plastronics Pvt Ltd (SPPL), which has branding licenses for international brands including Blaupunkt, Thomson, Kodak and White-Westinghouse, said the consumer electronics industry is seeing price hikes at various levels on the backend of things.

Avneet Singh Marwah, CEO, SPPL said, “We are assuming that consumer electronics prices will be hiked at all levels in the last quarter of this financial year.

Manufacturing may get delayed due to increase in pandemic cases as it will create shortage of manpower. In addition, several state governments have introduced weekend and night curfews, he said.

Due to this, there is a loss of up to 25 per cent in production, Marwah said, adding that the shortage of raw material along with the rise in prices will add to this.

The cost of metals and plastics used in consumer durables has increased by 70 percent, along with an increase in the cost of semiconductors needed to make the product.

He said that electronics prices across the region would continue to rise in the last quarter, which would hurt the sentiments of the customers.

Videotex International, which owns the Daiwa and Shinko brands, said overall TV prices have come down since Diwali despite a steady increase in prices of material inputs such as mainboards, wires, packaging, etc.

Open sale costs have come down over the past few months, although freight costs have started rising again.

As a brand, we will not increase our prices this month. “We are currently monitoring the market situation and will decide on the next course of action in the coming months,” he said.

The Indian appliance and consumer durables industry is expected to be worth around Rs 75,000 crore.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)

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