Tech-savvy south leads in high-end products buying

The high-end categories have been the growth drivers for the Rs 21,000 crore consumer durables sector and it is south India that has shown maximum penchant for advanced technology products.

Across categories like colour TVs, refrigerators, airconditioners and washing machines, the south leads in buying high-end products.

While in the case of CTVs, the north is the major buyer with 33 per cent of all-category TVs sold in the region in 2005, followed by the south with 30 per cent, the west with 24 per cent and the east with 13 per cent, south India leads in buying flat TV, LCD and plasma display panel (PDP) sales.

According to ORG-GfK figures, 36 per cent of flat TVs were sold last year in the south, 25 per cent in the west, 24 per cent in the north and 15 per cent in the east.

"About 38-40 per cent of our LCD TVs and PDPs are bought by the south, while the west is the next major buyer, accounting for 32 per cent of our LCD TV and PDP sales. The north accounts for 23-24 per cent of sales," said Amitabh Tiwari, business group head, consumer electronics, LG Electronics.

The southern tech-savviness is also corroborated by the fact that frost-free refrigerators are sold most in the south (35 per cent), followed by the north (27 per cent), the west (26 per cent) and the east (12 per cent).

In terms of total refrigerator sales, the north at 34 per cent had a slight edge over the south at 33 per cent.

The south also leads in converting to split ACs, where 45 per cent of ACs sold were split ACs, followed by the west with 40 per cent and the north with 30 per cent.

The higher incidence of split AC sales in the south can be attributed to the high disposable incomes, the awareness levels and the standard of living, said Rajesh Jain, general manager - marketing and key accounts, Voltas.

"As high as 40-45 per cent of our fully automatic washing machines sales happen in the south, followed by 30-35 per cent in the west, 20-25 per cent in the north and the rest in the east, said Sanjay Prasad, head - sales, Whirlpool.

Again, front-loading machines are more popular in south India. "South and west contribute 70 per cent to total sales of front-loading washing machines, with 40 per cent coming from the south," said Girish V Rao, vice-president - sales, LG.

It is not only the price differential of Rs 3,000-5,000 between a front-loading and a top-loading washing machine, but also the fact that the front-loading one requires continuous water supply, which is difficult in the north and the east, makes the two regions lag behind the south in buying this type of machine, said Prasad.