The average age of a refrigerator consumer is estimated to be 34-35 years, according to industry sources. This was 38-40 years about eight years ago in 2013-14. What’s also gone up are repeat purchases of refrigerators, which is the second-most penetrated household appliance after the television.
According to data based on research just prior to the pandemic, close to 30% of customers are first-time buyers as compared to approximately over 40% around 2013. This means, repeat buyers are nearly 70% as compared to about 60% in 2013.
Godrej Appliances business head & executive VP Kamal Nandi told TOI, “While we don’t have data available readily for average age from a decade ago, the general observation has been that consumers are getting younger. It is estimated to have been in the vicinity of 38-40 for the industry around 2013-14. This shift correlates to readily accessible EMIs on consumer durables, widespread card usage, easier access to home loans, etc, which was not the case earlier.”
Another trend that has picked up momentum is premiumisation in consumer electronics, according to Samsung India senior VP (consumer electronics business) Mohandeep Singh. “We witnessed a rise in demand for big-screen TVs and soundbars owing to the in-home entertainment requirement, while large capacity washing machines and refrigerators addressed home utility with superior technology. This trend, now being followed by the rest of the consumers, is here to stay as they see value in spending a little extra to experience advanced technology and more convenience,” said Singh, who expects Samsung’s premium segment across all consumer electronics categories to grow by 80% this festive season.
Given that there was revenge buying post-pandemic, the industry expects the current festive season — the first in three years without any lockdowns — to further fuel such trends. Nilesh Gupta, managing partner at Indian electronics retail chain Vijay Sales, is pinning hopes on Diwali for volume growth to turn around. “We expect a value growth of 15-20% this festive season. But we are still struggling on the volume growth front. The volume growth is in single digits,” said Gupta.
Gupta said consumers are not keen on undertaking repairs if an appliance develops a snag. Instead, he said, they prefer to exchange their appliance for a new one, which has boosted the number of repeat purchasers. The pandemic also made people realise their micro-entrepreneurial potential with the evolution of cloud kitchen. This made them shift to larger appliances.
Nandi of Godrej Appliances said, “Today, the average lifespan of appliances is 9-10 years. At one point, this used to be 20+ years. The younger generation is also keen on upgrading to get the latest technology. Pandemic has also changed storage habits and so there is a greater demand for larger chest freezers. Lifestyles have certainly changed.”
Household penetration for refrigerators in India is around 33%, while that of televisions is 77%.
