30 October 2014, NEW DELHI – ASIATODAY.COM – The developing country of India has evolved substantially over the last two decades, with the kitchen being an area that is evidently going through modernization. Cooking processes which are usually done manually—kneading, grinding, chopping, juicing, etc., are increasingly being replaced by automation in rising number of households in the country. Within the last five months alone, consumers in India spent some USD 249 million on kitchen appliances; translating to 5 percent more in sales volume and 11 percent more in revenue generated when compared against the same period last year.
On an annual basis, GfK retail sales tracking revealed an estimated total of 7 million units of food preparation equipment (including mixer grinders, hand blenders, food processors, choppers, kitchen machines and hand mixers), 1.3 million units of juicers/presses/juicer mixer grinders, 1.1 million units of rice cookers and 1.7 million units of water filters/purifiers being snapped up between September 2013 and August 2014.
“Today’s convenience driven generation does not hesitate to adopt appliances to make their life easier and simpler,” said Nikhil Mathur, Managing Director for GfK in India. “It is especially during festivals that we see surges in take-up of new appliances since such celebratory events usually mean more cooking in households and gifting occasions.”
Findings showed that sales of kitchen appliances during such times account for more than two-fifth (43%) of annual turnover in the past 12 months. For instance, food preparation equipment and juicers/grinders sold more during Diwali (October-November) and wedding season (April-May) as they make popular gift options. Meanwhile, rice cooker sales peaked in January as Pongal—the harvest festival is celebrated in the Southern part of India. The monsoon period in July and August spurred strong demand for water filters/ purifiers given that the need for clean drinking water intensifies during these months.
“Retailers and manufacturers also play a major role in driving growth by introducing a wide array of promotions--ranging from exchange offers, discount/cash back schemes, and bundling or free gifts to push sales during such festive times,” highlighted Mathur. Organized trade stores are increasingly becoming a significant channel for promotion and placement of products across categories as consumers prefer the experience, wide variety and good value they get to enjoy in these stores.”
Latest GfK report showed that sales contribution of organized trade escalates significantly during festive months—from 14 percent to 18 percent in volume turnover.
“The rising affluence lending to rapid adoption of kitchen appliance in India is making the market an especially attractive and important one for appliance makers and retailers alike,” said Mathur. “Being a diverse country with many celebratory events throughout the year, it is even more important that they are able to capitalize on sales during these times with the right deals, placement and pricing to win the consumer dollar,” he concluded.
Notes:
- Survey covers: Urban India excluding rural, B2B, online, direct sales, and canteen sales
- GfK Retail track for Kitchen Appliances currently covers only Urban India including channels namely Electrical / SDA Specialists, Cash and Carry, Hypermarkets, Departmental Stores, Electrical material Stores and Utensil/Crockery stores.
- Past 12 months survey period: Sep 2013 – Aug 2014
- Past 5 month survey period: Apr - Aug 2014 vs Apr - Aug 2013
- Products considered under Kitchen Appliances: Food Preparation (Mixer Grinder, Food Processor, Hand Blender, Hand Mixer, Chopper, Kitchen Machine), Juicer Mixer Grinder, Juice Extractor, Citrus Press, Rice Cooker, Water Filter / Purifier.
Seraphina Wee
Manager, PR & Communications
GfK | One George Street #22-02 | Singapore 049145
T +65 6826 8622 | M: +65 9385 0222
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