Season Due to changes in prices and inflation, air conditioner (AC) sales have been weaker than expected. At the same time, there is a tremendous increase in the demand for cold drinks, ice cream, dairy products and other refreshing products. Industry experts say that due to unseasonal rains, storms and relatively low temperatures in the evening in many parts of June, the need for AC was felt less. Moreover, due to rising prices, consumers are turning to cheaper options like air coolers and fans instead of buying expensive ACs. However, severe heat is also being seen in many parts of the country.
Increase in demand for refrigerators and washing machines
Kamal Nandi, Business Head and EVP, Godrej Enterprises, said the demand trend in the cooling products category was mixed. Demand for refrigerators remains strong in both general and premium segments, while demand for washing machines is also increasing with the arrival of monsoon. However, he said that there has been a huge decline in AC sales across the country, especially in North India, in June. AC sales have declined at the industry level. The main reason for this is change in weather.
AC sales fell due to storm and rain
He said that due to storms and rains in many areas of the country and low temperatures at night, people do not need AC as before. Apart from this, due to inflation, consumers are postponing unnecessary expenses. Nandi said that due to several rounds of price hike in the last few years, the prices of ACs have increased by about 18 to 20 percent. For this reason, many consumers are giving preference to air coolers and fans instead of AC.
Weather did not meet industry expectations
A senior official of a leading AC company said that this time the summer season has not been as per the expectations of the industry, especially the month of June was very weak. However, the industry’s turnover value has registered a growth of about 35 per cent so far in the current year, mainly due to the increasing share of premium products and higher prices.
Tremendous increase in sales of cold drinks
On the other hand, beverage companies reported strong demand during the summer. Abhishek Gupta, vice president, Coca-Cola India and South-West Asia, said the company has been receiving good demand throughout the summer season. Sales have been boosted by smaller packs, quick commerce and growing trend of on-the-go consumption.
Strong increase in sales of ice cream and curd
A similar trend was seen in the dairy sector also. Mother Dairy Managing Director Jayateertha Chari said the sales volume of the company’s fresh dairy products and ice cream business in the June quarter has registered a growth of more than 30 per cent compared to the same period last year. Strong demand for ice cream, curd, dairy beverages and value-added dairy products drove this growth, he said.
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