Prices of TV and home equipment more likely to go up by round 10% from January

Prices for LED TV and home equipment equivalent to fridge, washing machines are anticipated to go up by round 10 per cent from January subsequent 12 months on account of rise in prices of key enter supplies like copper, aluminium and metal and improve in ocean and air freights expenses.
Besides, costs of TV panels (Opencell) have additionally gone up by over two-folds as a result of brief provide by the worldwide distributors, whereas value of plastic has additionally gone up as a result of rise in crude oil costs, stated producers.
Terming it as imminent and unavoidable, producers equivalent to LG, Panasonic and Thomson are going to extend the costs from January, nevertheless, Sony remains to be reviewing the scenario and is but to take a name on this.
“We expect the increase in commodity prices to impact our product pricing in near future. I anticipate the prices to go up by 6-7 per cent in January itself and may go up to 10-11 per cent towards end of FY Q1,” stated Panasonic India President & CEO Manish Sharma.
LG Electronics India can also be going to extend the worth of a minimal of seven to eight per cent throughout its merchandise within the home equipment class from January 1 subsequent 12 months.
“From January, we are going to increase the price of 7-to 8 per cent on all products including TV, Washing Machine, refrigerator etc. There is an increase in raw material prices and metals as copper and aluminium. Moreover, crude oil prices have gone up, hence the cost of plastic materials have also gone up substantially,” stated LG Electronics India VP-Home Appliances Vijay Babu.
While for Sony India, it’s nonetheless a ‘wait and watch’ scenario and but to take a remaining name on this however hinted that it is usually transferring in that instructions.
On being requested in regards to the costs Sony India Managing Director Sunil Nayyar stated: “Not yet. It is a wait and watch. We are watching the supply side, which is changing day by day. Its blurry situation and we have not decided as how much… Tendency is moving towards that situation.”
The panel costs have edged up and the a few of the different uncooked materials prices additionally has gone up, specifically for the TV, he added.
“I reckon it with primarily with demand and supply situation. There is excess demand because of work from home and there is limited supply because factories were not running at full capacity and that has created a vacuum in the supply side and have pushed up the prices,” stated Nayyar including “it was a perfect storm as all thing came together disruption in supply, excessive demand and extraneous issues”.
Prices of small display screen sizes have a much bigger problem for the trade and their costs have gone up considerably.
“Off course, the large screen also has an issue but I do not think it is troubling. India is still a predominantly 32-inch screen size market,” stated Nayyar.
Super Plastronics, the model licensee for French Electronics model Thomson and Kodak, stated there’s a shortage of TV Opencell available in the market and the costs have virtually gone up by 200 per cent.
“There is an increase of 200 per cent in panel prices and despite the increase, there is short supply. Due to no alternative of panel manufacture at the global stage, we are dependent on China. So, Thomson and Kodak will increase the android TV prices by 20 per cent from January,” stated SPPL CEO Avneet Singh Marwah.
Videotex International Director Arjun Bajaaj stated: “The other factor leading to a sharp rise in the prices is the three-fold increase in Import Freight charges compared to October 2020.”
However, there’s a warning notice additionally from the Consumer Electronics and Appliances Manufacturers Association (CEAMA) saying {that a} worth hike by the manufacturers may hamper the general demand within the subsequent quarter.
“A rise in the commodity cost by 20-25 per cent, increase in the ocean and air freights to the extent of 5-6 times due to shortage of containers and the lag in the mining activity due to the pandemic is putting upward pressure on the overall input cost for Appliances. As a result, brands are most likely to increase prices to the extent of 8-10 per cent in near future, which may hamper the overall demand in the next quarter,” stated CEAMA President Kamal Nandi.
However, Nandi, who can also be Business Head and Executive Vice President Godrej Appliances, stated the trade hopes that it is going to be offset to some extent by pent up demand surfacing now.
According to Nayyar: “It would not sustain for a long period but for the industry until the first half of the next year, the pressure would remain.”
The Indian home equipment and client electronics trade is essentially depending on international imports, primarily from China, for the sourcing of elements and a few of the completed items.
According to a joint report by CEAMA and Frost & Sullivan, the trade had a complete market measurement of Rs 76,400 crore in 2018-19, by which Rs 32,200 crore was contributed from home manufacturing.