There are signs of revival in the refrigerator market. After a decline during the January-May period this year, June and July have seen a considerable retail movement, which is likely to continue in the coming festive season.
Sales of washing machines also improved during June, with the segment registering a decline of one per cent over a four per cent decline till May this year.
According to figures provided by market research firm ORG-GfK, the refrigerator segment grew four per cent in June against a 10 per decline in the period between January and May 2001. In the same period last year, the segment had registered a growth of 2 per cent.
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The direct-cool segment showed considerable retail movement. Volume of sales in June increased six per cent over the year-ago period. This was a huge shift from the nine per cent decline registered by the segment during January-May this year. During the whole of last year, the direct-cool business had grown only by around three per cent.
However, the higher end and more expensive frost-free category of refrigerators continued to remain sluggish. In June, the frost-free segment registered a 14 per cent decline -- a minor shift from the decline of 17 per cent registered during the January-May period.
During the washing machines category also, the high-end fully-automatic category continued to remain in the slump.
Against the industry's one per cent decline, the frost-free segment grew 21 per cent in June. In the January-May period this year, the industry had registered a decline of 17 per cent, which means June has been an extremely bad month for automatic washing machine manufacturers.
In the whole of last year, the frost-free segment had registered a growth of 13 per cent.
On the other hand, the report for semi-automatic washing machines has been good. In June, the category grew five per cent against a one per cent decline in the January-May period and a three per cent growth in the previous year.
Figures for July were not available. However, most manufacturers said their sales have improved during the period. In the refrigerator segment, the industry is expected to have registered a growth of around 5-6 per cent. "We expect the semi-automatic washing machine industry to grow even faster during the coming months, more so with the ensuing festive season. The rural demand is expected to pick up due to a good monsoon and salaried employees getting their bonuses," an executive of Kelvinator Electrolux said.
Raj Jain, managing director of Whirlpool, also expressed hope that the coming months will witness a considerable growth in volume of both refrigerators and washing machines. Whirlpool has lined up new range of washing machines and refrigerators to address the growing demand.
Sources in LG and Samsung, the two other majors in the washing machine and refrigerator categories, said new products would be launched ahead of the festive season beginning next month.