At a time when retailers across the country are struggling to stay afloat and break even from last year, the consumer durables and electronics sector seems to be bouncing back relatively faster.
According to a recent survey by Retailers Association of India, these segments have not just matched October 2019 levels, but have exceeded it by 8%.
Furthermore, OLX has revealed that computers, laptops and tablets have witnessed the highest growth in the consumer electronics segment this year, due to work-from-home guidelines and online school for children.
These ever-evolving customer behaviour patterns continue to be front and center of all sales trends during this pandemic.
Complying with stay-at-home orders have led consumers to upgrade their homes by digging into their savings to purchase more of the big-ticket items such as TVs, ACs, refrigerators, washing machines, microwaves and other kitchen appliances.
This increased willingness to spend could be attributed to the fact that other expenditures such as travelling and eating out have become virtually non-existent over the past 8 months.
Demand for products such as ovens, toasters, induction cookers and blenders have increased too because the people who are cooking at home more seek convenience.
Adding to this change in consumption patterns, The Festival of Lights also lent some of its sparkle to durables sales this year.
Insights from retailers and manufacturers have revealed that sales growth for home and kitchen appliances this Diwali has been in the double-digits compared to that of 2019.
Insiders remain hopeful that the post-Diwali period could continue to bring in significant sales, as the anticipated Indian Wedding Season kicks off. Kitchen appliances fly off the shelves since they are popular gifting items.
So, what did these consumer durable brands do differently to defy all odds?
Analyzing their strategies, we can conclude that they adapted to all the above-mentioned changes with a combination of:
- Agile business models
- Innovative marketing strategies
- Expansive online presence to reach consumers
The top-performing durables brands also increased their digital ad spends to grab the mind share of today’s click-happy consumers.
Three key strategies to introduce to your business plan
Has your brand utilized any of these strategies yet? If not, you should strongly consider them.
1) Marketing Overhaul
In light of this global crisis, people are choosing to engage with brands they can relate to. It’s imperative that any brand communication or product offering be more value-oriented, authentic and genuine, and less about selling products.
Brands must switch their focus to emotions in order to engage with consumers. Social listening should be employed to observe and study public sentiment.
For example, releasing a range of promotional offers, extended warranties, bundled offers and attractive finance options across product categories will show your consumers that you care about their financial constraints.
2) Omni-channel: The need of the hour
Brands concentrating their efforts on upgrading both online and offline touchpoints, or adopting an omnichannel strategy are best poised to not only drive sales but to also drive consumer engagement, ensuring a seamless experience across channels for their consumers.
Durable retail chain Croma has done a good job of implementing the omnichannel strategy. Their brick-and-mortar locations have been refurbished, displays areas for their best-selling products have been rearranged. This has resulted in improved footfalls and conversion rates.
(Source: Business Line)
3) Rethinking the media-mix
While it is true that there has been a surge in online purchases during the pandemic, durables brands have continued to advertise on tradition mediums such as print and radio. By going to where the audience is, brands can maximize ROI and improve marketing outcomes.
The Managing Director of a popular durables company said that in order to optimize their reach to their target group, they have been advertising across both digital and print channels.
Similarly, Senior VP of Marketing & Sales of another leading durables company shared that they have invested heavily in a combination of TV, Print and Digital- with Print getting the lion’s share.
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