Brands Retailed: Videocon, Samsung, and Panasonic
Annual Turnover: Rs.18 crore
Refrigerators experienced substantial growth in 2016-17. Major contribution came from the replacement market as many consumers are upgrading their existing models to premium ones. Frost-free is the most popular segment. Market of energy-efficient models is on the rise owing to surge in the number of consumers getting aware about energy consumption in basic models. Manufacturers are leaving no stone unturned to innovate and provide value-for-money technologically advanced models, such as bottom-mounted and French-door with value-added features. We are expecting an even better 2017-18.
Navrang Electronics, Saharanpur
Brands Retailed: Videocon and LG
Annual Turnover: Rs.5 crore
Refrigerator Sales (2016-17): 800 units
We achieved satisfactory growth in the last financial year. It could have been better had demonetization not impacted sales in the fourth quarter. Since the market is still in recovery mode, it will take a little longer to regain growth. We are optimistic for the second half of the current year. Frost-free segment contributed the most owing to upgradation by consumers from direct-cool. Premium models are still lagging behind in our region because of their higher price. Energy-efficient models may gain popularity if consumers are made aware of their advantages, and affordability is increased. Direct-cool category still holds considerable share in our sales. E-retail and modern retail do not pose any challenge for us. We are expecting 15 percent growth in 2017-18.
Shikha Electronics, Jaipur
Brands Retailed: LG, Samsung, and Godrej
Annual Turnover: Rs.22 crore
Refrigerator Sales (2016-17): 1100 units
Early and extended summers proved profitable for refrigerator sales in the last fiscal year, having received impetus from an increasing working population, especially in urban households. Rural market, with government’s rapid electrification plans, holds great potential for increasing penetration of refrigerators. The replacement market is seeing a surge as many consumers seek to upgrade to high-end models. Demand for inverter refrigerators is also gradually emerging. Thus there is expected to be considerable market share of this segment in coming years. In refrigerator category, there is no impact of e-commerce. However, modern retail is affecting our profit margins.
Rishabh Electronics, Hyderabad
Brands Retailed: LG, Hitachi, Lloyd, Mitsubishi, and IFB
Annual Turnover: Rs.20 crore
Early onset of summer, rising disposable income, and changing lifestyle are leading to a lucrative refrigerator market. We experienced 20 percent growth in 2016-17 despite demonetization, owing to easy finance options which are further generating an increased number of enquiries on the counter for inverter models. Side-by-side and frost-free held the share of 30 and 70 percent in the sales, respectively. By the end of 2017-18, there should be a growth of 30–35 percent.
Srinivasa Electronics, Ongole
Brands Retailed: Videocon, Kelvinator, LG, Samsung, Whirlpool, and Bosch
We witnessed growth of 15 percent in 2016-17 and expect at least 20 percent in 2017-18. Contribution of high-end refrigerators has been very low in the region, whereas direct-cool and frost-free held the share of 40 percent and approximately 55 percent, respectively. Rising concern for electricity consumption will result into greater demand for energy-efficient refrigerators. Overall, under-penetrated refrigerator market will play a major role in elevating demand in coming years.
Rajat Electronics, Noida
Brands Retailed: Haier, Hitachi, LG, Samsung, and Panasonic
Refrigerator sales in FY16 were unsatisfactory, primarily in the aftermath of demonetization. It markedly impacted our business. Frost-free, direct-cool, and side-by-side segments contributed 40, 50, and 10 percent respectively to total sales. High pricing of premium models has also emerged as a challenge, which affects revenue-based growth. Moreover, we are losing our consumer-base to modern retail, which provides ample options under one roof to consumers. We are trying to regain our foothold in the market by offering better discounts and a wider range than other retailers. We are hoping for at least 15 percent growth in the next financial year.