Air conditioner and refrigerator sales this summer — from March till now — have been a washout of sorts with intermittent rains in the North, South and East playing spoilsport, top companies and retailers said. According to industry estimates, AC sales have plunged by more than 15% between March and April third week over the same period last year, while refrigerator sales have been flat. Primary sales — from companies to retailers — were completely washed out in April since retailers have been saddled with unsold inventory. “The meteorological department’s prediction of higher temperature this summer hasn’t really happened. As a result, the trade is stuck with inventory,” said Godrej Appliances business head Kamal Nandi. Carrier Midea India MD Krishan Sachdev echoed similar sentiments, though he said there has been some positive movement in some pockets last weekend. Appliance makers had, in fact, increased their production last month after the meteorological department’s prediction of hotter days ahead. Panasonic India CEO Manish Sharma said sales are down in excess of 20% over last year for the industry.

The March to May period accounts for almost 45-50% of annual sales of refrigerators and air-conditioners. As a result, the industry has started consumer promotions such as free installation, extended warranty, cash back and gifts like free LED TV and microwave oven to bring consumers back to the stores. Voltas vice president (marketing and key accounts) Deba Ghoshal said promotional off ers are at their best in the industry right now. He, however, said it is early to give a definite trend since some parts of the country are witnessing good traction while others are yet to peak.

(Source: ET Retail.com, April 24, 2018)