Consumer durable manufacturers rework on pricing strategies

Just two days since the prices of steel have been rolled back, major consumer durable manufacturers have started reworking on their pricing strategy.

While Samsung India is mulling to hold the hike in price on air conditioners, LG Electronics is planning to pass on a miniscule part of it to the customers unlike 3-5 per cent that it was contemplating earlier.

As reported by Financial Express, R Zutshi, deputy MD, Samsung said, "Due to continuous increase in input costs, we were contemplating an increase in prices of air conditioners. But after the steel prices have come down, Samsung will see if there is a downward trend in the industry and hence may not go for a hike." He also added that there is no scope of rolling back the increase in prices of refrigerators announced in March.

Whereas Electrolux is adopting a wait-and-watch approach before it decides to roll-back prices. The company had already increased prices of refrigerators by 2-5 per cent and of ACs by 5 per cent in April.

The recent reduction in prices of steel by Rs 4,000 a tonne has come as a respite to the Companies as the steel prices had soared up by around 45 per cent since January this year.