India Markets open in 4 hrs 10 mins

ACs, washing machines, fridges on heavy discounts as companies look to clear old inventories

FE Online
retail, malls, store, shopping, consumer durables,

As consumer durable companies reel under piled up inventories and await fresh stock in the upcoming summer season, they are offering discounts across various categories such as air conditioners, refrigerators and washing machines. "Samsung is liquidating old inventory of invertor ACs at steep discounts. Moreover, brands are even liquidating old inventory of refrigerators and washing machines," Emkay said in a report on Friday. Most of the brands are expected to launch new products from February onwards as they focus on premium end of the spectrum. However, with demand for ACs and refrigerators remaining downbeat owing to winter season, cashback and discounting offers are still live for several companies meaning customers can get these products on discounted rates. 

These companies are offering discounts

Room air conditioners of LG, Hitachi and Whirlpool are on discount in the range of 4-5%. On the other hand, Samsung and Whirlpool have reduced prices of direct cool refrigerators in the range of 3-6%, according to Emkay report. IFB, which launched new SKUs of front-load washing machine two months ago, has cut prices by 4% on-month as the launch price was at a higher tag. Lloyds and Blue Star have cut prices for certain SKUs for the second month in a row. 

Meanwhile, companies are cutting prices not only because of inventory backlog but also because of competitive reasons. "Voltas has been aggressively pushing inventory of RACs in anticipation of Samsung's launch in February 2020," the report said. 

The demand for all white goods has been downbeat after Diwali, barring the washing machine category which has reported healthy growth. "Demand for washing machines has seen sustained growth in the month of December 2019 and January 2020," Emkay said. Newer SKUs of washing machines are expected to hit the market by the end of January 2020. Meanwhile,  Whirlpool is leading the old inventory clearing as it awaits to launch a feature-rich SKUs, which is likely to be available in the market from February 2020.