Stock clearing to rain discounts on consumers in June ahead of GST rollout.
The rupee's slide to a two-year low will impact consumer durables and electronics companies, as the import content in their products tends to be high
Most analysts as well as company executives say the rally in commodity prices is ill-timed coming just when firms were recovering from disruptions such as demonetisation & introduction of GST
As the rupee continues its freefall against the dollar, cars, TVs, washing machines and other home appliances are set to cost more with companies set to hike prices to offset impact on their margins.
Consumer Electronics and Appliances Manufacturers Association Consumer has also welcomed the move saying the it would improve the sentiments and strengthen the growth.
Fridge, washing machine, and paint makers are expected to cut prices shortly, while TV, aircon, and sanitary napkin makers are a disappointed lot
The festive season, which usually starts from September, is when 35 per cent annual sales get transacted for most durables firms.
Indian consumer durable market faces competition from Korean dealers.
As temperatures begin to soar, AC makers have become extravagant with their claims and ad budgets as they look to get brand penetration up from the current low levels of four per cent, says T E Narasimhan.
While e-commerce operations for these firms are small at the moment, it is slated to grow in the next 3 to 4 years.
Anticipation of weak sales this festive season due to deficient monsoon, especially outside big cities.
Consumer durables and electronics companies are putting the final touches to their festive period plans.
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