PANJIM: The white goods industry is looking forward to the festival season where more than 35 to 40% of the year’s sales are generated. This year it has taken an added edge given that economy of the state has been in the doldrums for a while affecting retailers in various product segments.
The recently concluded world cup football tournament was a godsend for retailers of various television brands with Goa being one of three markets in the country where special schemes are unveiled prior to the football tournament. This had a dramatic effect on the sale of television sets with Shetye, one of the largest retailers in the white goods industry selling 230 odd sets in the run up to the world cup from his four outlets.
Asked if this made him the biggest players in the market the manager demurred and said that it would have to be Korde in Ponda which usually sold approximately 200 odd television sets a month from their two or three stores in that city.
The market sentiment according to another small retail outlet in Taleigao was that the market was tight. The sales executive at the counter said that they were selling around 13 to 14 television sets every month which was an indication of the scope of their business.
People he said were presently going around various outlets in the city checking out the various offers. During the festival season all the companies usually offer schemes with zero percent interest.
This is an important factor considering that there has been a radical change in the financial behaviour of the Goan consumer out to buy white goods. Earlier the Goan consumer would pay cash and purchase the goods. Today approximately 60-70% according to some estimates fund their purchases with a loan from a bank.
The festival period meaning the lead up to Ganpati and Diwali amounts from approximately 40% of the sales generated during the year. With regards to Christmas he said there was mere 1 to 2 per cent increase in sales of televisions and this was usually made by people who had come down to Goa for the holiday season and were used to a certain standard of living abroad perhaps in the Gulf.
Considering that the sale in a month may be approximately 100-120 television sets every month during the course of the year, the festival season usually witnesses a rise in number to approximately 400 television sets in that period of time.
Companies track the margins given by each other closely with some of them changing their pricing mid season to combat a move by a competitor. Margins could start at 10% and can go up to 20% depending on sales numbers.
With regards to air-conditioners the market was down due to the monsoon but 60% of all purchases now were being made in the coastal area where several hotels were being refurbished. The state has the capacity to absorb 4000-4500 a year.
Felipe Alvares of Prime Electronics said the market had individuals who were purchasing their entire requirements in terms of televisions, fridges, air conditioners from one person. The bills were usually in excess of a lakh and he was entertaining approximately five to six such customers every month.
The white goods business in the state has been growing at four to five percent a year and was estimated to be approximately Rs 300 crore worth in 2013. Brands like Samsung, Toshiba and Sony will hope that the festival season will result in encouraging sales from the smallest state in the Indian republic.
