Festive sales to contribute 25% to total revenue, says Orpat Group's Nevin Patel
A significant 15% increase in demand from Tier-2 and Tier-3 regions is just another optimistic hint that sales will increase this festive season.
- Oct 30, 2021,
- Updated Oct 30, 2021 8:39 AM IST
One of the industries whose growth was fueled by the COVID-19 pandemic was the kitchen and home appliances.
The demand did not just come from the urban population working from home but also the rural markets looking to upgrade.
Continuing this growth momentum, popular clockmaker, Orpat Group, which also makes the kitchen and home appliances is expecting good growth this festive season.
"The market will be good because there will be consumption where there's a population. And because consumption cannot be stopped since it is a necessity, it will surely increase. The consumer sentiment is quite positive and we do expect an increase in demand, especially this festive season," says Nevil Patel, Director, Orpat Group.
Also Read: Pandemic, early winter fuels online sale of appliances
"If the situation stabilises, sales will resume on a regular basis. We, in fact, believe that the festive sales offers, which commence around Navratri, will contribute around 25 per cent to the total revenue," he adds. Over the last year and a half, there has been a considerable increase in internet shopping and consumers have become accustomed to shopping using digital payments.
"There is an increase in online sales from tier III and IV cities. Previously, sales of various home appliance brands were reliant on offline outlets. While many of the brands immediately went online as the pandemic spread, via e-commerce and direct-to-consumer (D2C), sales for others suffered," avers Patel.
In the midst of all this, Orpat Group too had also launched its direct-to-consumer (D2C) platform in July 2020.
A significant 15% increase in demand from Tier-2 and Tier-3 regions is just another optimistic hint that sales will increase this festive season. The Orpat Group has already met its previous year's sales targets.
Also Read: Demand recovery: Tier 3 cities fire up e-commerce festive sales
However, the ongoing semiconductor shortage that has impacted the automobile industry, technology giant Apple and other consumer durable brands is likely to impact sales for Orpat Group as well.
"Yes, we are experiencing a shortage of semiconductors and due to this situation, the price has also increased dramatically. Furthermore, supply is not assured, therefore we believe we will lose some part of the sales as a result of the shortage," says Patel.
But despite a 7-10% increase in prices across the product range due to rising raw material costs, Patel expects the share of home appliances in its overall business to rise from 25% to 40%-45% in the next few years.
One of the industries whose growth was fueled by the COVID-19 pandemic was the kitchen and home appliances.
The demand did not just come from the urban population working from home but also the rural markets looking to upgrade.
Continuing this growth momentum, popular clockmaker, Orpat Group, which also makes the kitchen and home appliances is expecting good growth this festive season.
"The market will be good because there will be consumption where there's a population. And because consumption cannot be stopped since it is a necessity, it will surely increase. The consumer sentiment is quite positive and we do expect an increase in demand, especially this festive season," says Nevil Patel, Director, Orpat Group.
Also Read: Pandemic, early winter fuels online sale of appliances
"If the situation stabilises, sales will resume on a regular basis. We, in fact, believe that the festive sales offers, which commence around Navratri, will contribute around 25 per cent to the total revenue," he adds. Over the last year and a half, there has been a considerable increase in internet shopping and consumers have become accustomed to shopping using digital payments.
"There is an increase in online sales from tier III and IV cities. Previously, sales of various home appliance brands were reliant on offline outlets. While many of the brands immediately went online as the pandemic spread, via e-commerce and direct-to-consumer (D2C), sales for others suffered," avers Patel.
In the midst of all this, Orpat Group too had also launched its direct-to-consumer (D2C) platform in July 2020.
A significant 15% increase in demand from Tier-2 and Tier-3 regions is just another optimistic hint that sales will increase this festive season. The Orpat Group has already met its previous year's sales targets.
Also Read: Demand recovery: Tier 3 cities fire up e-commerce festive sales
However, the ongoing semiconductor shortage that has impacted the automobile industry, technology giant Apple and other consumer durable brands is likely to impact sales for Orpat Group as well.
"Yes, we are experiencing a shortage of semiconductors and due to this situation, the price has also increased dramatically. Furthermore, supply is not assured, therefore we believe we will lose some part of the sales as a result of the shortage," says Patel.
But despite a 7-10% increase in prices across the product range due to rising raw material costs, Patel expects the share of home appliances in its overall business to rise from 25% to 40%-45% in the next few years.