The spending and consumption pattern of Indians saw a major shift during the pandemic with people splurging more on premium electronic goods, reported The Economic Times.
Data from GfK India shows the average selling price (ASP) of smartphones rose by 9%, laptops by 7% and kitchen appliances such as microwave and refrigerator by 4% in 2020 compared to the previous year.
It might be a startling fact that Indian families bought costlier electronic items against the backdrop of job losses and salary cuts amid the pandemic. Companies reasoned this to hopes that premium products last longer and would help sustain the unprecedented situation the pandemic brought humankind to.
“Premium products led to value growth at higher pace than in previous years across categories, belying expectations that consumers might down-trade due to income or job job losses,” Gfk India said in the report.
The value growth for smartphones touched 24% in 2020, which is the highest since 2011. Laptops witnessed a growth of 35% due to increased sales of gaming and premium quality laptops. For appliances—it was 30% for microwaves, 26% for television sets, 17% for washing machines, 12% for air conditioners and 11% for refrigerators.
“Markets are moving from want to need. Pent-up demand for tech and durables is owing to lesser avenues of spend during the pandemic. Therefore, with changing lifestyles in the new normal, and growing economy, this trend is likely to stay,” Nikhil Mathur, managing director – Gfk India, was quoted in the report.
“When consumers were adjusting to life in lockdown, the need for ‘entertainment at home’ also kicked in, aiding the growth of premium price segment,” he added.
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