The hot weather has led to increased sales of consumer durables, making this the strongest summer in years for the industry.
Cooler, air conditioner, refrigerator, and ice cream manufacturers are all summer classics. The harsher the summer, the better it is for the corporations that produce these items. Air conditioners and air coolers are in high demand in middle-class houses, while refrigerator sales are strong.
According to Vijay Sales Director Nilesh Gupta, this summer has the potential to be the best in 10-15 years, with over 30% growth over the previous year. According to industry sources, the air conditioning market increased by 15% last year, while refrigerator sales remained nearly constant.
Several ice cream and cold beverage companies anticipate a 20–30% revenue increase. Baskin Robbins anticipates a nearly 20% year-on-year sales increase this summer, fueled by the hot weather.
According to Mohit Khattar, CEO of Graviss Foods, the master franchise rights holder for the American brand in India, demand for their sundaes and desserts has skyrocketed.
Naturals Ice Cream is experiencing double-digit growth in all zones and expects to complete the season with a 30% increase over the previous year. Its soft coconut and mango ice creams are selling out fast. "Online shopping has grown considerably, and due to the heat wave, customers are choosing home consumption during the day,," said Srinivas Kamath, the director of the company.
Coke appears to have found its fizz in Coca-Cola as the company increases distribution to reach more customers. "In India, we are always attuned to market dynamics and consumer preferences," said a Coca-Cola Company representative, declining to comment on sales figures.
Tang, a powdered beverage owned by Mondelez, declared that the year has started on a positive note. As it competes with a slew of other market participants, the brand is attempting to increase consumer engagement through visibility across touch points, according to Nitin Saini, VP (marketing) at Mondelez India.
In contrast to other categories, such as fashion and fast-moving consumer goods, where executives have pointed to a demand gap between the mainstream and premium markets, the durables industry is experiencing growth from both groups.
For Blue Star, for example, 90% of consumers who purchase air conditioners are first-time buyers, and approximately 60% are from small towns. B. Thiagarajan, managing director of the company stated, "Within residences, ACs can be put throughout numerous rooms, and hence the potential possibilities for the category is enormous."
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