If the data for sale of consumer durables between Jan.-June 2005 is anything to go by, Indian consumers are throwing their ‘value for money’ image out of the window. More and more people are settling for high-end products.As a result, the rate of growth of high-end durables, which was always higher than the industry average due to its smaller base, has now hit higher levels.For instance, while washing machines grew 12.5 per cent in the period under review, the fully-automatic segment grew at 53.9 per cent. In refrigerators, the frost-free segment grew 53.9 per cent against direct cool category’s 1 per cent growth.Easy availability of consumer finance and rising income and aspirations are the two big factors, which have led to this shift. The move has also been aided by some high decibel consumer promotions. “Exchange offers, assured gifts and bundle offers have helped these products fly off the shelves,” adds Sanjeev Wadhwa, General Manager, Marketing, Electrolux. In air-conditioners, the split variety has grown at 30 per cent against the industry average of 14 per cent. Even though the price differential between these two segments is sill high (around Rs 7,000), the overall rates have come down. “A split AC is available today at the price of a window AC two years ago,” says Suresh Khanna of Consumer Electronics & TV Manufacturers Association).In refrigerators, the frost-free segment is growing at the cost of the direct cool. Between January and June, the former grew at 53.9 per cent, while the latter at 1 per cent. In televisions, the flat segment posted a 78.3 per cent growth,while the overall category seems to be stagnating.
