Cooling market in the country like AC, fridge, cooler is expected to remain cold for the second year in a row due to the Corona epidemic and lockdown. Sales were expected to double to double this year following last year’s paint-up demand. But with the onset of the summer season, lockdowns were imposed in most parts of the country. As a result, sales have halved.
Earlier this year, it was expected that AC-fridge prices would rise by 10 to 15 per cent after April. In view of this, retailers and showroom operators had accumulated a large amount of stock in February-March. According to the owner of a large electronics showroom in Bhopal, refrigerators and ACs have the highest sales in April and May. But showrooms were closed last year. And Corona’s second wave has turned the tide on optimism of increased sales this year.
“The second wave of covid is even more painful than before,” said Kamal Nandi, president of the Consumer Electronics and Appliances Manufacturers Association and AVP of Godrej Appliances. More than 80 per cent of shops are closed due to lockdown in most parts of the country. Due to which the demand in the cooling category has declined despite the hot season.
Markets were closed last year. But sales are down 45 to 50 percent compared to 2019. Consumer confidence has declined. Online sales have also declined. This is because in many places only essential items like groceries are allowed to be sold online.
An increase in production was driven by optimism of higher sales, a major company official said. Rising prices of raw materials like copper have pushed up production costs. But crores of rupees are stuck in the unsold industry.