Value Added Products Witness Rising Demand – Greater Uptake for the Premium Level of Consumer Durables

28 June 2022: As per news reports, the leading companies in the consumer durables segment have been recording a higher uptake or demand for their value-added or premium category products vis-à-vis their lower end of the spectrum products. The latter have been facing resistance due to dual factors. There is a far greater pressure on disposable income, which coupled with the higher cost of living has impacted transactions at the entry level. The reducing distance between entry-level and value-added categories is considered to be the other decision driver.

Parallelly, value-added products customers from the middle class or rich category, are providing impetus to transactions of both, white as well as brown goods. The leading brands dominating this sector depend greatly on their patronage. The consistent rise in commodity prices is another factor influencing the market trends.

Avneet Singh Marwah, the CEO of SPPL has been quoted in the media as saying that if the delta between entry-level and mid-level is narrowed then consumers will choose the mid and affordable premium category. Currently, we are witnessing the same. Our 40 inches and 43 inches 4K TV segment is performing as good as the entry-level segment, he said.

Concurring with this rationale, Pallavi Singh, Sr. VP of SPPL, explained that as a result, the cost of entry-level products is now nearing that of the next segment, hence a consumer would feel the need to debate on settling for a product when a value add can be purchased by paying a minimal price difference.

Saurabh Baishakhia President – Appliances, Usha International, has been sharing insights on the concept of premiumization, opining that it has been gaining momentum industry-wide. We at USHA have witnessed a surge in demand for premium products that add value and convenience to consumers’ daily lives, across home and kitchen appliances, he said.