Kay Bee Electronics, Mumbai

Shyam Kalwani

Brands retailed: Videocon, LG, Haier, Samsung, Panasonic, Whirlpool, IFB, and Bosch

Annual turnover (2016–2017): Rs.41 crore

Projected growth: 10 percent

Since July we are experiencing approximately 40 percent decline in sales. However, we have met our sales targets in pre-GST sales which we usually cover during JAS quarter. We expect decrease in sales during Diwali as our major customer base has already made purchases before July. The impact would have been less on our sales, had the government introduced lower tax rates for the electronics sector.

National Marketing Associates, New Delhi

Rajeev Awasthi

Brands retailed: Daikin, Hitachi, LG, Voltas, Godrej, Ferroli, Warmex, and Napoleon 

Annual turnover (2016–2017): Rs.23 crore

Projected turnover: Rs.25 crore

GST followed by shortage of inventory has impacted our sales tremendously. At present, consumer enquiries have decreased by 25–30 percent as sales were preponed in May and June. Washing machines and refrigerators were fastest moving products during this time. Market will indicate signs of recovery only by the end of 2017. We are expecting flat growth in 2017–2018.

Sound and Vision, Udaipur

Tarun Aggarwal

Brands retailed: Haier, Samsung, and Electrolux

Annual turnover (2016–2017): Rs.7 crore

Projected turnover: Rs.9 crore

Sales have slowed down significantly after GST implementation, owing to heavy pre-GST discount offers and current price hike on all products. Footfall has decreased by 30–35 percent in our stores. We are expecting the market to recover during Diwali. 28 percent tax rate is too high for consumer electronics and home appliances as they are no more luxury products. At present, we have ended all discount offers in our stores. We may not bring additional discount offers during festive season owing to changed market scenario.

Citifone Deals, Mumbai

Viren Lohana

Brands retailed: Samsung and Panasonic

Washing machine sales (2016–2017): 1500 units

Annual turnover: Rs.20 crore

Projected turnover: Rs.25 crore

Semiautomatic washing machines (40 percent) are losing market share against fully automatic models (60 percent). Changing consumer lifestyle and easy financing options have led to such a shift in preference and this uptrend toward high-end models will continue in coming years as well. However, 2017–2018 may not meet our profit target owing to post GST fall in sales. Market may show signs of recovery during Diwali but it will not be as good as 2016–2017 festive season sales.

Rai Enterprises, Jalandhar

Love Chawla

Brands retailed: Videocon, LG, Haier, Samsung, Panasonic, and Godrej

Refrigerator sales (2016–2017): 2000 units

Annual turnover: Rs.27 crore

Projected turnover: Rs.30 crore

2016–2017 was a great year for refrigerators. In comparison with 2015–2016, sales were high. We experienced 15–20 percent growth, in which frost-free refrigerators held a share of 65 percent. Direct cool is still preferred by price sensitive consumers. Demand for side-by-side segment has shown a considerable surge. The current financial year could turn out to be flat in terms of growth as there has been a decrease in consumers’ footfall, except during pre-GST sales.

Ramditta Mal Hans Raj, Muktsar

Hans Raj Nagpal

Brands retailed: Haier, Samsung, and Whirlpool

Microwave oven sales (2016–2017): 300 units

Annual turnover: Rs.10 crore

Projected turnover: Rs.15 crore

Market for microwave ovens has been stagnant since 2015 and there are no signs of an upward trend in coming years as well. We experienced 1 percent decline in sales in this segment. Penetration is still low in Tier-II and Tier-III markets as consumers continue to rely on traditional methods of cooking and heating food. Microwave ovens are still considered to be a luxury product. GST implementation has emerged as a new challenge for the market.

 

Bharath Electronics, Coimbatore

Raja Ravichandran

Brands retailed: Kent, Aquapure, Hindustan Lever, and Zero B

Water purifier sales (2016–2017): 650 units

Annual turnover: Rs.16 crore

Projected turnover: Rs.18 crore

Water purifiers have now become a necessity of every household, and contribute 10 percent to overall sales. Increase in purchasing power of consumers and aggressive marketing by companies have led to its growth. Frequency of replacing the product is higher than other appliances, which is why we are expecting better sales and at least 5 percent growth from the segment.

Soni Electronics, Manali

Shahid Khan

Brands retailed: Bajaj Electricals and Sunflame

Water heater sales (2016–2017): 250 units

Annual turnover: Rs.3.5 crore

Projected turnover: Rs.4 crore

Penetration of water heaters has increased tremendously in Tier-II market as they are finally shifting from immersion rods. Electric water heaters continue to dominate the market, followed by tankless water heaters. Solar water heaters need some more time and awareness among consumers to gain popularity in India. Small commercial applications, such as nursing homes and guest houses make significant contribution to overall sales. We experienced a growth of 5 percent in 2016–2017. This year we expect growth of additional 5 percent owing to heavy pre-GST sales.

PMP Electronics, Ahmedabad

Mahesh Thakkar

Brands retailed: LG, Godrej, and Philips

Air purifier sales (2016–2017): 150 units

Annual turnover: Rs.12 crore

Projected turnover: Rs.15 crore

2016–2017 started the trend of air purification due to a whopping rise in air pollution mainly in Tier-I cities. Air purifiers have begun contributing to our sales figures and enquiries are increasing, however, it holds only 1 percent share at present. High price is the major challenge which hinders growth.

 


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