Panasonic, Haier, Godrej Will Increase Price Of TV, Appliances; 7-8% Increase Expected Next Month
Brands are no longer able to absorb the rising input costs, and weakening of Rupee.
If you were planning to buy that TV or smart gadget next month to celebrate New Year, then you better hurry. Leading TV and home appliances brands have decided to increase prices of their products in India.
And this price hike will start next month.
But what is the reason? Keep reading to find out more!
Panasonic, Godrej, Haier Will Increase Price
As per incoming reports, three major consumer electronics brands in India: Panasonic, Haier and Godrej have confirmed that they will increase price of TVs, refrigerators, and other home appliances by 7-9%.
Panasonic India President and CEO Manish Sharma said, “Over the last few months, the rupee has continually risen which in turn is impacting our inputs costs. While we try to absorb maximum costs for our consumers, but given the market situation, we will be forced to hike the prices by 5-7% from next month,”
Haier India President Eric Braganza too confirmed the price rise of their products, as he said that, “cushioning of prices was no longer an option with tight margins coming into play.”
Godrej, one of the oldest and most prominent consumer electronics brand have also confirmed price hike.
Kamal Nandi, Godrej Appliances Business Head and Executive Vice President said that in some locations, they will start the price hike starting November only.
What Is The Reason For Price Hike, Suddenly?
Based on our investigation, we found mainly two reasons:
- The weakening of Rupee against Dollar (Pan-India effect)
- Kerala floods (Southern India effect)
As per Panasonic India President and CEO Manish Sharma, the rising dollars and weak rupee have significantly increased their input costs, and they are no longer able to sustain the shock.
As per Consumer Electronics and Appliances Manufacturers Association or CEMA, the price hike was planned to happen in the month of September, but as festive season kicked in, brands chose not to increase price.
The same was reciprocated by Haier India President Eric Braganza, who said, “We have ensured that the price rise comes into effect post the festive season since India tends to purchase consumer durables extensively during this time.”
Interestingly, Sony India has refused to increase the price of their products in India, especially TVs. A spokesperson from Sony confirmed this.
Which Sectors May Witness Price Hike?
Every category of consumer appliance and electronic gadget, expect washing machines and smartphones have witnessed flat growth since last few quarters.
In terms of TVs and ACs, the growth was negative, whereas refrigerators experienced flat growth.
In smartphone brands, Xiaomi had announced a 15% price hike in their existing line-up of products, which was soon followed by Realme as well.
We will keep you updated, as more details come in.