Kumud Das Mumbai

Thefestive season is the most important sales window for the consumer durables industry, and this year it is arriving alongside a fresh round of price revisions. It is the period when demand, pricing and cost management come together for manufacturers and retailers alike.

Consumer durables makers have taken price hikes of 10-12 per cent this year, with a further round of 5-7 per cent effective from 1 October, according to Kotak Institutional Equities.

Demand continues to be supported by low penetration, easy financing and exchange offers, with many households still to make their first purchase of a refrigerator, air conditioner or washing machine. At the same time, manufacturers are working to balance pricing with higher input and logistics costs, a task that is shaping how brands plan production, sourcing, stocking and festive offers this season.

Talking to Bizz Buzz, Jasraaj S Kalra, Managing Director, Noble Group, says, “The overall industry is growing at 10-12 per cent, and most of that comes from low penetration, so the demand story is firmly in place.”

What shapes the season is margin management. Larger brands are able to absorb cost pressures better, which gives them the room to hold prices, keep investing and gain share through this phase. For the wider industry, the same pressure is also accelerating work on cost discipline, localised sourcing and efficiency, which are the right capabilities to build as the market keeps expanding.

The pattern is similar in kitchen and home products, a category that sees strong gifting and replacement demand around Dhanteras and Diwali, where advance planning and steady inventories are helping brands manage the season.

“The festive season surge is still on, and demand has remained steady despite the rise in costs. We usually prepare for this period well in advance, so our planning, sourcing and production schedules were already in place before prices started moving. The global situation has raised the cost of raw materials, freight and packaging, and we have absorbed a good part of that through better efficiency. Any price increase passed on has been kept modest so that consumers are not discouraged from buying. The market has shown strong resilience, and we expect the momentum to continue through the season as long as costs stay stable,” said Anurag Jain, Director, Jaypee Plus.

With penetration still low and consumer intent steady, the outlook for the sector remains positive, with growth likely to stay on course through the rest of the festive period. Advance planning and efficient cost management are likely to decide which manufacturers turn this festive demand into lasting market presence in the months ahead, as the industry continues to expand.