Sales of consumer durables shooting up

MUMBAI: Even with other companies complaining of the downturn raining on their sales parade, sales of ACs and refrigerators seem to have gone up along with the temperatures this summer.

After a short summer season last year, sizzling hot weather this time round coupled with higher consumer spend have spurred sales for consumer durable majors. ACs and refrigerator sales are predicted to rise 25% over last year while the overall industry might record a 20% growth rate over the previous years 7%

Bank loan on housing has reduced dramatically by the banks and fuel and commodity prices came down. Whenever something like this happens there is a disposable income in the family the first purchase that is made is a consumer durable product

Although none of the companies reported cutting down workforce or closing units because of the downturn, they have streamlined operations in order to keep the margins intact.

What we also did as a result of the downturn, because of the liquidity crisis we all tightened operating efficiencies that has also helped. Make your supply chain far leaner and agile and credit which you give to the market that was tightened. So the operations became more efficient than they originally were.

So if you have your heart set on a new refrigerator or a sleek LCD TV for your home this might be a good time to go for it. Companies like Godrej and Samsung are launching new products to keep the consumer satisfied.

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Tags:

• Godrej
• Analysis
• ACs
• consumer durables
• bank loan
• summer