Easy financing and lifestyle upgrades fuel appliance demand this festive season

Retailers in the consumer durable segment are expecting strong sales this festive season, despite a 5%-8% price increase in select products. Consumers are increasingly willing to stretch their budgets, moving beyond price-conscious purchases, with easy EMI options encouraging them to spend more, say retailers.

A visit to some of Chennai’s popular retail outlets showed healthy footfalls on the first day of the festive season, with retailers expecting the momentum to continue until Deepavali in November.

“Today (October 17), marked the first day of the festive season, and the numbers are looking better than they were last year. The growth has been good value-wise, but the sales numbers are low,” said Nitesh Giria, who heads Girias, a consumer durable retail chain. He further said that the price of mobile phones and many other products have gone up in the last six months.

Prices of important raw materials, including steel, copper, and aluminium, have gone up in the last few months. And this, in turn, has pushed manufacturers to increase prices.

The person in-charge at the outlet belonging to IPO-bound Sathya Agencies said that with easy financing options, consumers continue to spend more.

Tamil Nadu-headquartered Sathya Agencies Ltd., which acquired Karnataka-based Unilet Appliances Pvt. Ltd., is expecting a good festive season in Tamil Nadu as well as Karnataka.

Mayilvaganan Thanikavelu, a retailer into the consumer durable sector, said the price increase has not hampered buying trends. “The extended summer in the State has also boosted sales for most retailers this year, with demand for air conditioners remaining strong,” he added.

“Despite the growth of e-commerce, consumers still value the touch and feel experience offered by physical stores. In fact, I am planning to open a new outlet, HomeConnect, near the T. Nagar bus terminus soon,” he added.

Mr. Thanikavelu further said that there is a huge demand for dishwashers. Several retailers also noted that the demand for dishwashers has been rising month-on-month, driven by consumers upgrading their kitchens and lifestyles, as well as a shortage of domestic help.

Vijay Vasanth, Managing Partner of Vasanth & Co., said the festive season was looking promising. “Premium products are selling well. Earlier, people upgraded their mobile phones once every five years, while some used the same phone for up to 10 years. Today, new models enter the market every six months, and consumers are upgrading their phones every two years. In the case of iPhones, some consumers upgrade [their phones] every year. Therefore, we expect good demand across all product categories,” he added.

The Confederation of Indian Industry (CII), in partnership with Boston Consulting Group (BCG), recently launched a report on India’s Consumer Durables Market at CII Consumer Electronics and Durables Summit 2026.

It projects that India’s consumer durables market will grow by 8%-10% annually through 2030 to reach ₹3-₹3.25 lakh crore, driven by rising household incomes, greater access to financing, and changing consumption patterns.

The report also mentioned that seven in 10 Indian households are expected to be nuclear by 2030, driving higher household formation and unit demand.