InvestorQ : Are consumer durables companies also likely to raise prices due to higher input costs?
Rashi Mehra made post

Are consumer durables companies also likely to raise prices due to higher input costs?

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Archita Jajjoo answered.
4 months ago
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In many cases it has already happened and in more cases, the price hikes are expected soon. For example, in the new year, a number of consumer durable products like refrigerators and air conditioners are likely to see a spike in prices in the range of 5-10%. This is largely due to higher input costs. In fact, some of the players like National Panasonic, LG and Haier have already revised prices upwards in the last few weeks to compensate for the input cost spike.

Meanwhile others like Sony, Hitachi and Godrej are likely to follow suit in the next few weeks. These appliances have been hit by higher input costs as well as higher freight costs. The recent anti-dumping duties imposed on aluminium and refrigerants will also add further add to costs. However, going ahead, a lot will depend on whether consumer demand stays robust, because otherwise price spikes may not really work in practice.

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