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Domestic consumer durables segment is likely to see a moderate spell in near term as rising interest rates will likely weigh on the mood. The June-July period is typically tepid for large appliances before the festive season buying kicks in. A runaway spurt in inflation and rising input costs for various consumer durables products could also keep the overall enthusiasm under check. Meanwhile, the growth in the all India House Price Index slowed to 1.8% in the final quarter of FY22 compared to 2.7% in the year-ago period, the Reserve Bank of India said in a release on Tuesday.Prices in Kolkata expanded by 19.2%, while those in Bengaluru contracted 11.3%.On a sequential basis, the index contracted 1.1%. Kolkata, Chennai and Kanpur recorded sequential growth, while the index contracted for the remaining cities. This is showing that the follow up demand for housing market post Covid could be moderating now.
TV Shipments Zoom In India
The post-pandemic economic recovery, faster upgrades in the entry tier and pent-up demand aided by festive sales contributed to growth of TV market in India. The country registered a 24% YoY in TV shipments, and a 55% YoY growth in 2021 in smart TV space says Counterpoint Research.The smart TV market is showing tremendous growth, which is attributed to increase in demand for home entertainment amid lockdown, newer launches at affordable prices, growth of new entrants, discount schemes, and premium features at attractive prices.
Newer brands are offering advanced display technologies like OLED and QLED at attractive prices, which are also helping in enhancing the viewer experience.Xiaomi was the market leader in the smart TV segment in 2021 with an 18% market share. The MI TV 4A, MI TV 4X, MI TV 4A Horizon edition and Redmi Smart TV X series were its best-selling models. However, Samsung led the overall TV shipments in 2021 with an 18% share. It had a 16% share in the smart TV segment. The entry-level T4000 series was Samsung's main volume driver in 2021 and helped it lead the overall TV market.
Outlook:
Prices of major household appliances are up around 20% over last year and are set to climb higher as manufacturers look to compensate for the weaker currency. Major products like washing machines, fridge and air conditioners, among other consumer durables, will become costlier from June, as a weak Indian rupee against the dollar is making imported components.
Meanwhile, globally, inflation continues to weigh on sentiments and could keep a check on consumer confidence. The inflationary readings soared to 9.2 per cent in OECD countries in April, driven by a rise in the cost of services and food. The rate is up from the 8.8 per cent annual increase in consumer prices recorded in March, according to OECD data.
Excluding food and energy, year-on-year inflation increased to 6.3 per cent in April, compared with 5.9 per cent in March. The increase in the price of food strongly picked up, reaching 11.5 per cent year-on-year, partly driven by the war in Ukraine. Services prices saw an average rise of 4.4 per cent year-on-year across 33 OECD countries, compared with 3.9 per cent in March.
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