According to insights by Flipkart, the current heat wave has significantly increased the demand for cooling appliances which includes ACs, refrigerators, coolers and fans across the country. In Ahmedabad, the overall cooling appliances segment saw a growth of 1.7x with ACs, seasonal appliances (coolers and fans) and refrigerators seeing 2.1x, 1.7x and 1.5x growth respectively.
Increased focus on health and hygiene and cost savings have led to customers opting for appliances with anti-bacterial, air purification and energy-efficient features. While these functionalities existed even before, it is witnessing greater traction among customers with the growing focus on the air quality. A consumer survey conducted on the Flipkart app also confirmed this shift with a large number of surveyed customers preferring built-in air purifiers as one of the top functionalities in their ACs. This has led to more brands launching ACs with similar functionalities including Samsung, Haier, Whirlpool, Daikin, Bluestar, Voltas and Godrej who are expanding their selection of cooling appliances on Flipkart.
As far as refrigerators are concerned, there has been an increase in the demand for energy efficient and convertible variants offering higher storage refrigerators along with multi-functional features such as curd maker. As the usage of freezer is limited in India as compared with other parts of the world, convertible options are witnessing greater adoption which transforms the freezer section into a normal fridge. This apart, customers are seeking appliances with higher storage space as they continue to work and learn from home for a longer period of time. Furthermore, a higher percentage of customers are opting for replacement options while purchasing a refrigerator since the launch of product replacement construct on Flipkart. Also, there has been an almost 20% increase in the adoption of No Cost EMI in the past one year, highlighting the growing importance of affordability for customers. Through these constructs, Flipkart is able to help customers to upgrade their appliances in an affordable manner.
In addition to this, customers are also opting for energy efficient ACs and refrigerators to save on electricity bills and reduce cost of operations. While the former saw a jump of upto 40% in the demand for 5 star high capacity, high energy efficient AC’s, refrigerators adoption too reflected a similar trend.
Interestingly, the above mentioned trends are not only concentrated in metros but smaller cities and tier 2 and 3 cities are also contributing to this growth. This clearly indicates a change in sentiment and buying preference in the smaller towns.
Hari G. Kumar, Vice President – Large Appliances, Flipkart, said, “The COVID-19 pandemic has drastically transformed the priorities for customers who are now looking for appliances with air purification, expandable storage and energy efficiency functionalities. This is indicative of maturing of the cooling appliances market in India which is expected to witness significant growth this year. As a homegrown e-commerce marketplace with a nuanced understanding of customers evolving needs, we will continue to collaborate with leading brands and sellers partners to bring the best products to the millions of Indians customers at their doorsteps, no matter how far they are.”
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