THE GOAN
PANAJI
A new television, refrigerator or air-conditioner often finds its way onto the shopping list during the festive season. But this year, families looking forward to buying these may have to set aside a little more for their purchases as manufacturers are set to revise prices from October 1. While air-conditioners are expected to see increases of around 5-8 per cent, refrigerators, washing machines and some LED televisions could become about 3-4 per cent costlier. The extent of the increase will vary between brands and product categories, with some companies still reviewing their pricing.
The revision comes just before the main festive buying period, when demand for home appliances normally picks up. The period from Dussehra to Diwali is considered to account for around 30-40 per cent of annual sales for appliance manufacturers. This month thus becomes a crucial time for both brands and retailers.
The latest increase is being driven by costs that have built up across the manufacturing and supply chain. Materials such as copper, aluminium and steel, which are a critical part of the machine, have become more expensive, while crude oil derivatives used in various components have also added to production expenses. Copper is particularly important for air-conditioners, with a typical unit requiring around 3-4 kg of the metal. Higher freight expenses and currency fluctuations have added another layer to the cost of bringing components and finished products to the market.
The situation is also linked to disruptions in international supply chains due to current geopolitical conditions. A delay in shipments impacts the availability of components and makes it harder for manufacturers to plan production and maintain inventory that runs at the earlier costs. Electronics manufacturers also rely on globally sourced components, making them vulnerable to changes in international prices and logistics.
AC buyers are likely to notice the difference most clearly. An 8 per cent increase on a Rs 50,000 air-conditioner would add Rs 4,000 to the price if the full increase is passed on to the customer. Some brands have already revised AC prices, while further increases are expected from October. Other household appliances are also being affected, although the increase is expected to be more moderate in several categories. Some companies have announced higher prices for refrigerators, washing machines and LED TVs, while others are waiting to assess costs before making a decision.
Televisions face additional pressure from the rising cost of electronic components and memory chips. Some manufacturers have indicated further increases after October, with the extent expected to differ according to screen size and product category. The increase may not immediately translate into higher prices for every product on a showroom floor. Retailers had stocked up before the festive season, with some of this inventory bought at older prices. As a result, products carrying earlier price tags may continue to be available for some time. This could also mean that festive discounts remain available despite the price revisions. Brands and retailers are expected to continue using exchange offers, bank discounts, financing schemes and bundled deals to attract buyers during the season.
For consumers, the final bill may depend on more than the discount displayed at the store. Comparing the actual selling price, exchange value, warranty and EMI charges can give buyers a clearer idea of the cost before making a purchase. The October revision is not the first increase this year, with manufacturers continuing to face higher costs for raw materials, components and operations. However, retailers are still expected to roll out festive promotions to keep the demand strong during one of the busiest shopping periods of the year.
For these shoppers, the festive season will thus bring in the familiar dilemma: buy now before prices move up, or wait for a better deal and risk paying more later. With appliance prices and festive offers changing at the same time, this year’s shopping could require a little more calculation before that new AC, TV, or refrigerator finally makes it home.
