Summer Season: A mixed trend has been seen in the demand for summer related products in the June quarter of the current financial year. Air conditioner (AC) sales have been weaker than expected due to changes in weather and inflationary pressure. At the same time, demand for cold drinks, ice cream, dairy products and other refreshing products remained strong.
Industry experts say that in June, due to unseasonal rains, storms and relatively low temperatures in the evening in many parts, the need for AC was felt less. Due to rising prices, instead of buying expensive ACs, consumers are turning to relatively cheaper options like air coolers and fans.
Kamal Nandi, business head and EVP (appliance business), Godrej Enterprises Group, said the demand trend in the cooling products category was mixed. Demand for refrigerators remains strong in both general and premium segments, while demand for washing machines is also increasing with the arrival of monsoon.
However, he said there has been a significant decline in AC sales across the country, especially in North India, in June. According to him, AC sales have declined at the industry level. The main reason for this is change in weather. Due to storms and rains in many areas and low temperatures at night, people do not need AC as before. Apart from this, due to inflation, consumers are postponing unnecessary expenses.
Nandi said that due to several rounds of price hike in the last few years, the prices of ACs have increased by about 18 to 20 percent. For this reason, many consumers are giving preference to air coolers and fans instead of AC.
A senior official of a leading AC company said that this time the summer season has not been as per the expectations of the industry, especially the month of June was weak. However, the industry’s turnover value has registered a growth of about 35 per cent so far in the current year, mainly due to the increasing share of premium products and higher prices.
In contrast, beverage companies reported strong demand during the summer. Coca-Cola India and South-West Asia vice president (customer development) Abhishek Gupta said the company has been receiving good demand throughout the summer season. Sales have been boosted by smaller packs, quick commerce and growing trend of on-the-go consumption.
He said the company, along with its bottling partners, is expanding its cooling infrastructure and distribution network to increase the availability of chilled beverages.
A similar trend was seen in the dairy sector also. Mother Dairy Managing Director Jayateertha Chari said the sales volume of the company’s fresh dairy products and ice cream business in the June quarter has registered a growth of more than 30 per cent compared to the same period last year. Strong demand for ice cream, curd, dairy beverages and value-added dairy products drove this growth, he said.
Debabrata Mukherjee, managing director of Havmor Ice Cream, said the demand for quick-consumption products like cones, sticks and single-serve cups is continuously increasing. The platform for instant delivery of goods and the increasing trend of immediate consumption have given a special boost to the sales of these products.
Sandeep Ghosh, business head (masalas), DS Group, said there was a significant increase in demand for traditional products like raita masala, buttermilk masala, jaljeera and black salt during summer. He said that this trend shows that traditional Indian tastes and drinks continue to be the first choice of consumers in both rural and urban markets.
