Festive shopping to pinch as Iran war sets AC, TV prices on fire

The cost of festive shopping for new appliances, such as refrigerators and air conditioners, is expected to rise due to higher component and freight costs, according to consumer durable makers. Blue Star, Thomson India, Intex Technologies, Haier, and Daikin have either raised or are preparing to raise prices for various categories of appliances.

The increase in prices is attributed to higher input costs, currency movements, and revised energy-efficiency norms. Additionally, shipping delays are causing inventory planning and production schedule disruptions, further squeezing margins. Companies are facing pressure from both higher input costs and supply-chain disruptions, leading to price corrections across categories.

However, they are trying to balance the need to protect margins against the risk of discouraging buyers during the festive season. Companies are using various strategies, such as memory-chip cost absorption, extended warranties, retailer schemes, and financing options, to encourage upgrades despite the rising costs.