Festive Season Price Hikes Test Consumer Durable Makers

As the festive season approaches, consumer durable manufacturers are facing pressure to maintain demand despite rising input costs. LG Electronics India is set to raise prices of its air conditioners by 5-7% from October 1, following a wave of price increases across televisions, refrigerators, and other categories.

The cost of raw materials such as copper, plastics, and electronic components has increased due to supply chain pressures amid the West Asia conflict. Analysts predict that some sectors will be particularly vulnerable to these rising costs, with Bharat Birla of Anand Rathi Advisors warning of a 'value-led season' where sales value grows but volumes are muted in phones and laptops.

Companies like Godrej Enterprises Group and Amazon India's consumer electronics director Zeba Khan are managing commodity inflation through sourcing efficiencies, localisation, and supply chain optimisation. Retailers such as Electronics Mart India Ltd. are offering no-cost EMIs, cashback offers, exchange schemes, and bundled accessories to cushion consumers from higher prices.

While manufacturers absorb some of the costs internally, others like Summercool Home Appliances are passing on a quarter of the increase to customers. Intex Technologies has raised prices by 2-3% in select large appliance categories while absorbing a larger share of the cost pressure internally.