Despite concerns about semiconductor shortages and the impact of the expanding Omicron variant on business, India’s Rs 75,000 crore appliances and consumer electronics sector will activate to 2022 with aspirations of double-digit growth.
On a year-over-year basis, the arena expects double-digit growth, aided by a reasonable price adjustment following the softening of stuff inputs, nearly as good attitudes, pent-up demand, and better economic conditions.
Furthermore, a movement in consumer behaviour from price sensitivity to technologically sophisticated premium products with quality, value proposition, and safety features, increasing demand for home automation devices, is boosting the industry’s optimism.
Many manufacturers are gearing able to make the most of the government’s production linked incentive (PLI) plan for white goods, which has seen a committed investment of Rs 4,614 crore and make efforts to scale back their reliance on imports and make products more cost-effective.
Customers have become more tech-savvy in 2021, in keeping with leading firms like Samsung, LG, and Panasonic, who expect this trend to continue next year as consumers become more tuned in to computing (AI) and the Internet of Things (IoT) enabled devices.
Premium sector items, like more giant screen TVs, more excellent capacity refrigerators and washing machines, and IoT and AI-enabled appliances, were in strong demand not just in established metro areas but also in smaller tier-II cities. However, the appliance and consumer electronics industries should cater to a semiconductor scarcity, which has forced the postponement of future intelligent and connected product releases.
Phones and IT equipment aren’t included within the Rs 75,000 crore durables market. President Eric Braganza of the buyer Electronics and Appliances Manufacturers Association (CEAMA) expressed confidence for “double-digit growth” in 2022 but noted it’d depend on several factors, including price adjustment and, therefore, the lack of a 3rd wave of the COVID epidemic.
He said that consumer behaviour is shifting toward premium and connected intelligent devices, adding that buyers increasingly desire technologically sophisticated appliances that are linked, energy-efficient, and straightforward to control, allowing them to multi-task. Raju Pullan, Samsung India’s senior vice chairman of Consumer Electronics Business, anticipates “great growth” to continue, citing double-digit growth driven by the growing adoption of technology and innovative form factors and styles.
Premium sector items, like more giant screen TVs, more excellent capacity refrigerators and washing machines, and notably IoT and AI-enabled appliances, will have considerable demand in 2021.
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