Refrigeration Appliances in India

2020 IMPACT

Growing uncertainty in the first half of 2020 negatively impacts refrigeration appliances

Across India, refrigeration appliances are increasingly seen as a necessity rather than a luxury, with consumers from second- and third-tier cities and rural areas also aspiring to purchase such products. Sales are further supported by credit availability, seasonal discounts and affordable pricing in non-metro cities in the country.

Demand for double door fridge freezers continues to grow

The portfolio of refrigeration appliances available generally changes according to the demand from customers. Although single door fridge freezers continued to account for the significant majority of sales in 2020, demand for double door freestanding fridge freezers continued to increase.

Import disruptions underlie the growing stress on “Make in India”

The COVID-19-induced lockdown in late March 2020 led to restriction on international borders, resulting in supply chain disruption for many companies that are dependent on imports of components or products. Prime Minister Narendra Modi, in his address to the nation in May 2020 setting out India’s COVID-19 pandemic-related economic package, encouraged “Atmanirbhar Bharat” (“Self-dependent India”) and motivated many companies to look for solutions within the country.

RECOVERY AND OPPORTUNITIES

Redistribution of demographics and specialist retailers expected to increase penetration of refrigeration appliances

Recovery of volume sales of refrigeration appliances is expected early in the forecast period thanks to strong growth in 2021 and 2022. In India, lockdown and the new work from home culture has made many people from first-tier cities flock to their home towns in second- and third-tier cities, taking their living habits and disposable incomes with them.

Forecast period expected to witness an increased dependence on e-commerce

Refrigeration appliances require high investment and have long replacement cycles. Being touch-and-feel products, refrigeration appliances have historically demanded that customers physically evaluate the functions and utility of the products by visiting store-based electronics and appliance specialist retailers.

Purchasing behaviour changes expected to persist

India’s economy is expected to undergo steep recession in 2020. The COVID-19-related lockdown has taken a heavy toll on the economy, with a resultant impact on supply and distribution chains.