25 Aug, 2010, 01.
36AM IST, Ratna Bhushan & Pramugdha Mamgain,ET Bureau
Rainy August washes out summer
sales of air-conditioners & refrigerators
NEW DELHI: The wettest August in a decade has taken a toll on sales of soft drinks, air-conditioners and
refrigerators, with companies reporting anywhere between 10-30% drop in demand for these ‘summer products’.
Besides a drop in temperatures, which has led to lesser people consuming cooled beverages and buying ACs,
incessant rains have also made people stay at homes, affecting impulse buys of soft drinks.
Also, makers of ACs and refrigerators are facing storage problems due to waterlogged warehouses. Most
companies ET spoke to said if the volumes slump continues beyond this month, it may impact their toplines in the
July-September quarter. But they added that the overall sales for the first six months of the year remained
healthy.
The slump is specially sharp compared to the same period last year, when scanty rains had led to 30-40% spurt
in sales of beverages and ACs.
“Overall sales will get impacted by 15% this month over the previous year although as a brand we will continue to
see growth. Sales have got impacted across categories,” said Amitabh Tiwari, head of sales for LG India, the
country’s largest consumer durables maker. He added that heavy rains are also damaging cartons and the
products.
While LG is likely to register a 2-3% drop in air-conditioner sales this month over the year ago period, it expects
refrigerator sales to remain flat. Mr Tiwari hoped the forthcoming festivities would make up for the damage
monsoon has caused. Beverages firms too are hoping that the other months will make up for the monsoon blues.
“Sales are down this month across most parts of the country, expect for the eastern region, because of the heavy
rains,” said an official at a soft drinks firm. “But we hope the other months of the quarter will make up for the dip,”
added the person, requesting anonymity. Spokesmen of both Coca-Cola and PepsiCo did not comment on this
story.
The impact seems limited for packaged water industry. Ramesh Chauhan, chairman of Parle Bisleri, said, “Sales
of our 1-litre packs have been impacted by about 3-4% because people are not going out so much. But sales in
the Eastern part of the country remain good.”
Makers of ACs and fridges are facing additional logistics problems as heavy downpours have been causing traffic
jams, leading to delay in dispatches and deliveries. “We usually keep low inventory during the monsoon but
storing products is becoming a problem due to water logging in warehouses,” said Kamal Nandi, veep
(marketing) at Godrej Appliances
Refrigerators
Refrigerators In India
Refrigerators In India are an inevitability keeping in mind the tropical climate of India. More than 8
months of the year, 90% India faces hot humid weather. And hence, Refrigerators are Used in almost
all households. Sale of Refrigerators In India has touched new altitude altogether in the recent few
years as the living standards of the masses have improved and Refrigerator Prices are now more
affordable. Refrigerators for Home as well as Industrial use can be bought in budget starting from
less than 20,000 rupees to over 1,10,000 Rupees. Refrigerators With/Without Freezers and separate
Freezers are also available with the Retail Stores.
Types of Refrigerators
The types of refrigerators available in the Indian market are:
Bottom Freezer Refrigerators
Compact Refrigerators
Counter Depth Refrigerators
Freezer Less Refrigerators
Side-By-Side Refrigerators
Top Freezer Refrigerators
Wine Coolers
Freezers
Buy Refrigerators in India
The Best Buy ones are mainly the Bottom Freezers one and the Small Refrigerators. The Consumer
Reports show a sharp rise in Online Sale of refrigerators as well. The Indian buyers have become
smarter and prefer the Best Deals giving them complete value for money. They seek complete
information about the Refrigerators At Best Buy Prices as well as reports on Refrigerator Reliability
from the Reviews and Ratings available on many websites. Comparisons between Refrigerators are
made on the basis of the utility features like:
Size and Dimensions - Small or large
Energy Efficient
Capacity ranging from less than 200 liters to above 350 liters depending upon use
Freezer capacity ranging from less than 50 liters to over 100 liters
Defrosting system which can be automatic, semi automatic, frost free or cyclic
The number of doors.
One can Compare the Refrigerators for the additional features like:
With water dispenser
With Ice Maker/ dispenser
With Door Lock
With TVS
With French Doors
With Glass Door
With quick freezing
With deodorizing
With Freezer lamp
With humidity control
With adjustable shelves
Many Electronic Appliances stores In India offer special festive Discount and Best Buy Deals. Most of
them also provide Maintenance and Troubleshooting services in case the customer faces any
problems with the Refrigerator use. Some of the manufacturers like LG, Samsung, Whirlpool, Godrej,
Videocon and Electrolux also have authorized Service Centers In all parts of India for their
Refrigerators. Some shopkeepers also deal in Wholesale of New or Used Refrigerators and Spares
where one can get Cheap Deals. The Life Span of the Used Refrigerators may vary with their previous
Use and Maintenance. Refrigerators with Built-In or No Freezers and genuine Stainless Steel Spare
Parts are also available with the local dealer or with the company Service Centers.
