India, with its tropical climate, is very hot and humid in the south and east and dry in the centre and north. This happens during the summer season and it continues for almost 5 months starting late March. The beginning of the summer season is a treat to the home appliance makers as the sale of their home appliances especially Air Conditioner goes up rapidly.
However, this has not been the case in 2019. To much of people’s relief, the summer has been delayed and the temperatures are still favourable. This has resulted in people delaying their purchase of Air coolers and ACs until it gets a little hotter outside. However, this is good for the environment and humans alike, the electronics companies are in distress.
Popular brands in the Indian market fell back on their March estimation as they expected higher sales before summer starts. The low temperatures and pleasant weather are not helping their sales at all. However, their TV sales have been going up due to the start of popular sporting events such as the Indian Premier League in late March.
Considering the low sales, the companies have been reducing the price of the stocked up inventory to clear out as much as possible as soon as possible. It has been recorded that companies have reduced the prices of their ACs and refrigerators by almost 20%, which would attract customers to purchase them before hard summer hits.
Interestingly, there was a surge in offline sales a few months back due to the introduction of the new FDI policies that affected the sales of the e-commerce players. However, that wave has settled now and business is as usual for most players. In such a situation, the brands that earlier increased the prices of their products a couple of months earlier have been now forced to reduce the prices to sty n the competition. Brands are now reducing the prices of the goods that are not specific to summer season such as washing machines and televisions.