Picture this. You could get a TV at almost a 70-75 percent discount in a flash deal that will vanish in seconds. Or, you could get a chance to win Rs 4 crore if you are lucky.
These are just some of the offers which appliance makers will be rolling out ahead of the festive season.
Both large and small appliance-makers have lined up offers as a part of the festive season. However, the quantum of discounts offered online will be significantly higher.
“E-commerce have offered us the opportunity to make the most of the festive sales. While offers will also be available at physical electronic retail stores across the country, the discounts there will not be as high since these stores do not want to lose out on their margins,” said the head of consumer electronics of a mid-size FMEG firm.
No public announcement has been made about the flash deals due to the fear of complaints by traders against anti-competitive practices.
Among the large companies, LG Electronics India has announces its festive campaign named “Khwahishon se Khushiyo Tak” aimed at offering consumers offers and incentives on the purchase of LG products. The offers are available across product categories in Home Appliances and Home Electronics segment; and are valid till October 31.
According to Ki Wan Kim, Managing Director – LG Electronics India, the festive season is that time of the year when consumers look at upgrading their home products with something new.
As a part of the campaign, customers across India buying LG products including refrigerator, air conditioner, washing machine, water purifier or microwave avail a chance to win prizes worth more than Rs 4 crore through weekly lucky draws.
Every week, one lucky winner will get a chance to win LG products including refrigerator, washing machine, microwave oven or residential air conditioner.
Another benefit in the series is that there will be special days like the first day of Navratri (September 29), Dusshera (October 8), Karva-Chauth (October 17), Dhanteras (October 25) and Diwali (October 27) where customers could win premium LG products including side-by-side refrigerator or front-load washing machines.
To ensure that offline customers do not miss out on any offer, a slew of free gifts are also being given.
LG consumers will get bedroom refrigerators for free on the purchase of select side-by-side refrigerators. Buyers can also get a microwave or a vacuum cleaner on purchase of select front-load washing machines.
Samsung, on the other hand, has launched its “Add More Love” festival campaign offering deals and assured gifts for consumers across India.
Consumers purchasing select Samsung products such as QLED TVs, 4K UHD TVs, Refrigerators, Microwave Ovens, Digital Inverter Air Conditioners, Eco Bubble and Top Load Washing Machines, among others, will get up to 25 percent instant discount. They can also avail up to 15 percent additional cashback with Axis Bank, HDFC Bank, RBL Bank and ICICI Bank debit and credit cards.
During the offer period, valid till October 30, consumers purchasing select models of Samsung QLED TVs will get assured gifts such as Galaxy S10 smartphone worth Rs 61,900 and Galaxy A50 worth Rs 21,490.
With the purchase of select 4K UHD TVs, consumers will get complimentary gifts such as Galaxy M30 worth INR 17,990 and Google Home Mini Rs 4,999. With select Samsung AddWash Washing Machine models, customers will get also a 23 liter Microwave Oven free.
Panasonic India, as part of festive offer, is giving consumers an opportunity to win a trip to Japan to witness the Olympics Games Tokyo 2020 and a full-home makeover with Panasonic appliances and electronics on the purchase of its select products.
Manish Sharma, President and CEO, Panasonic India said that now consumers are looking for more from their purchases and added that they will catalyse this demand by extending opportunities beyond discounts and warranties.
The Confederation of All India Traders (CAIT), meanwhile, has asked the commerce ministry to look into the festive sales offers by e-commerce majors like Amazon and Flipkart, and allege that they violate foreign direct investment rules.
However, Rajneesh Kumar, SVP & Chief Corporate Affairs Officer Flipkart Group, said that it was a fully compliant organisation and had created enormous value to India in terms of boosting economic activity, supporting local manufacturing, Indian handicrafts and creating lakhs of new jobs directly and indirectly.
Samsung said that it would offer zero down payment EMIs for as low as Rs 1,078 per month for smart TVs, one down payment of Rs 11,111 and 24 EMIs of Rs 11,111 for Samsung family hub refrigerators. There will be waiver of one EMI if the customer chooses to pay in 20 instalments for select refrigerators and many more.
Raju Pullan, Senior Vice President – Consumer Electronics Business, Samsung India, said that the festive offers would help enhance the company’s leadership position.
LG, too, has made flexible payment facilities ahead of the festive season. On the purchase of televisions (OLED, Nano Cell, UHD, Smart TV and Full HD) and home appliances, there is a cash-back up to 12.5 percent on the purchase of select products. It also has flexi EMI schemes starting from Rs 1,999 and an extended 1+1 year warranty and discount on the six months subscription of Airtel set-top box.
Ahead of the festive season, consumer electronics brand – Sharp – has launched a range of kitchen appliances, air-purifiers, dehumidifiers and water purifiers. The range of smart home appliances for the kitchen include twin-cooker, superheated stream oven, slow juicer, vacuum blender, and bread maker.
Shinji Minatogawa, Managing Director – SHARP India, said, “The new launches will open up new avenues of growth for SHARP, while focussing majorly on consumer benefits. With ever-increasing demand in the consumer durables segment, India is becoming one of the leading markets across the globe.”
New brands have also entered India just days ahead of Navratri. Germany’s television brand Telefunken entered the Indian market on September 17 and will be sold on Amazon at a much cheaper price point than its peers.
Arjun Bajaj, Director – Videotex International (brand licensee of Telefunken in India), said that the focus for the festive season in 2019 will be massive discounts.
“We are looking to offer deep discounts across our brands including Daiwa, Shinco and Telefunken and are hoping that this initiative will help revive sales,” he added.
Television sales have stayed muted in 2019. Despite the World Cup Cricket tournament being held in 2019, TV sales saw a 15 percent drop and goods and services tax (GST) for televisions above 32 inches is at 28 percent. However, online sales have seen a lower decline than the offline counterparts.
Credit card use to be incentivised
White goods firms will enable customers to buy a majority of appliances at no-cost EMIs when the credit card is used. No-cost EMI is one where the interest rate payable for availing EMI facility is offset by offering a discount. This will purely be for customers using a credit card.
Apart from the EMI facility that will be available, deeper discounts will also be offered in the form of cashbacks. The cashback amount will depend on the price of the goods; higher prices will mean a higher cashback.
Similarly, products complementing the goods purchased will be offered at a 20-25 percent discount if a credit card is used. For instance, the complementary products for a dishwasher could include dishwasher-safe kitchen utensils, or in the case of television, it could be a home-theatre system.