Home appliances like Television, refrigerator, washing machines are probably to get pricey in the new year as appliances makers complain about higher input costs. The coronavirus pandemic has led to provide chain disruptions across the globe, which has created appliances’ input components such as copper, aluminium and steel more pricey. Further, a rise in the ocean and air freight charges are also anticipated to weigh on the costs of property appliances in the new year. “We have already planned and announced a phased price hike across our product categories. This increase will be in the tune of 5 to 7 per cent, across categories,” a spokesperson from Voltas told TheSpuzz Online.
However, it is anticipated that the upcoming summer season season, along with the altering life style post-Covid, will continue to drive the demand for the reduced penetrated solution categories, in spite of these value hikes. “We are confident about further opening up of consumer sentiments in 2021, and we will be monitoring the trend very closely,” the Voltas spokesperson added.
Other important brands such as Godrej, LG, Panasonic, and Thomson are also set to raise the costs of appliances in the new year. “A rise in the commodity cost by 20 – 25 per cent, increase in ocean and air freights to the extent of 5-6 times due to shortage of containers, and the lag in the mining activity due to the pandemic is putting upward pressure on the overall input cost for appliances,” stated Kamal Nandi, President, Consumer Electronics and Appliances Manufacturers Association.
As a outcome, brands are most probably to enhance costs to the extent of 8-10 per cent in close to future, which may perhaps hamper the general demand in the subsequent quarter, added Kamal Nandi, who is also the Business Head and Executive Vice President at Godrej Appliances. The business hopes that it will be offset to some extent by pent up demand surfacing now, he additional stated.
It is not only that the worldwide brands are queuing up to raise costs Indian brands also are all set to go for a value hike. In truth, the value rise in the domestic brands is anticipated to be more than worldwide brands.
“The industry is facing a severe challenge owing to the shortage and consequent increase of almost 150 per cent in the TV Open Cell prices, along with an increase in almost all other raw material such as plastic items etc,” Arjun Bajaaj, Director Videotex, told TheSpuzz Online. Also, the other issue major to a sharp rise in the costs is the 3-fold enhance in import freight charges compared to October 2020, Arjun Bajaaj added. Consequently, the costs can rise to the tune of 20-30 per cent.