EVER SINCE THE Covid-19 pandemic introduced the work-from-home routine, Ramesh Sharma (name changed on request), a corporate professional living in Delhi, started spending more on his food and groceries. Sharma, 45, has always been particular about the quality of his diet. But now, he buys more organic groceries and cold-pressed cooking oils and juices even though they are costlier and add to the general inflation in his food and grocery bill. Meanwhile, domestic worker Kusum is scouting for a second-hand refrigerator for her family of five. After multiple repairs, her fridge stopped working this summer. Kusum's husband is a driver, but they don't have ₹10,000 for a new fridge. Her budget: ₹3,000-4,000 for a second-hand one. With rising expenses, buying new appliances remains a dream.
Consumers like Sharma and Kusum are familiar to Kamal Nandi, Business Head & EVP of Godrej Appliances. A veteran of the consumer durables industry who tracks purchasing patterns, Nandi says the inflationary cycle that began in 2021 has throttled demand for mass-market home appliances. "For the past two to three years, the mass-market categories of essential appliances like refrigerators and air coolers have been subdued," he says.
In refrigerators, sales of single-door direct cool models have been contracting 5-10% a year since the pandemic. These models account for 70% of volumes. "Whatever growth was recorded was in the premium segment. Last year (2023), the refrigerator market remained flat as the mass segment de-grew by 6-7% [by volume]. In 2022, the mass segment was flat, but premium grew by 20-22%," Nandi says. Overall growth was 7%, against 10% in 2021.
Bu hikaye Business Today India dergisinin July 07, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today India dergisinin July 07, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
'Gap between haves and havenots is narrowing"
Tanvee Gupta Jain, Chief India Economist of UBS Securities India, on India's consumption story and the risks to the Indian economy
Rural Hope, Urban Fears
Industry enthused by signs of a revival in rural demand, but fresh concerns emerge over urban consumption
CRASH LANDING
The Supreme Court's order to liquidate Jet Airways, after prolonged insolvency proceedings, brings the focus back on the actual effectiveness of IBC
Indictment and its Aftermath
US prosecutors' decision to press charges against Gautam Adani and others in a case of alleged bribery could hit the group's ambitious expansion plans
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025