Budget, not brand, drives their purchase

CHENNAI: The devastation of the cyclone-induced flood in eight districts of Tamil Nadu, including Chennai, continues to be painful, as thousands of denizens have incurred personal and financial losses in lakhs, including damages to home appliances such as washing machines, refrigerators, mixer-grinders, televisions, etc.

Rather than repair-and-reuse, which would take longer, and perhaps cost a lot more, denizens prefer to buy them anew from retail outlets.

On the upside, retailers and traders are making a killing, as sales for such items have picked up marginally in the last two weeks, compared to the previous year’s. However, with only a few days left for the New Year offers to begin, they struggle to reach year-end target.

No financing

“Sales have not been severely impacted post-cyclone. In fact, we have received 5,000 more customers this month across the State. In 2022, from December 1-20, at least 25,000 customers bought products from the store, whereas this year it has increased to 30,000,” said D Divakar, Tamil Nadu relationship manager at Vasanth and Co. “Though we have announced exchange offers for damaged products in the floods, customers prefer to buy new products. We’ve sold many new washing machines and refrigerators in the last few days.”

The appliances store has stopped the practice of purchase-via-financing till December 31 in all its outlets across the State. Around 70% of customers buy through finance, and only 15% pay in full cash. Since this has been temporarily suspended, it has led to a drop in purchase in the last few days.

“To compensate for the marginal loss during the New Year sale, we’ve announced that those who purchase with a credit card will have a 10% discount and other banks’ finance will get an instant discount of Rs 1,000 on their purchase,” added Divakar.

Late deliveries

Stores have been facing many challenges post-cyclone in delivering products on time. Usually, it would take 2-3 days to deliver the booked product at the customer’s place.

But now, takes over 10 days for the shops to deliver due to shortage in manpower after the cyclone. Such a situation leads to several arguments between customers and retailers. The worst-case scenario is damage to the product in the warehouse due to the flooding. Retailers place orders with the companies directly, which takes a longer time for delivery to the stores.

However, the appliances’ stores across the State can still reach the profit-target marginally for December compared to the previous years. “Two months ago, we bought a washing machine online but it got damaged badly in the floods. Since the machine is not in running condition, we’re forced to buy a new one as the service charge is expensive. Now, we must focus on the budget and not the brand until the situation returns to normal,” lamented R Vijaya, a resident of Vyasarpadi.

After the cyclone, it was also noted that people were buying online based on a strict budget and not choosing expensive brands. “Unlike before the cyclone, customers are now buying appliances based on a budget and not based on brands or popularity. Walk-ins have drastically reduced in the last two weeks as people have started to purchase online. For instance, a 43-inch TV is sold for more than Rs 20,000 in the store, but online it’s being sold for much less- er,” explained U Mohammed Hussain, team leader at Sathyas in Chennai.

Grocery prices up

Post the cyclone, retail prices of grocery items in the city have surged marginally due to shortage of millets, chillies, and dhal varieties from the southern districts of the State. So, sales have been particularly dull for the festive season, lament traders.

For instance, price of rice sold for Rs 165/ kg has increased by Rs 5/kg. Garlic prices that used to cost Rs 250-260/kg is now priced at Rs 320-350/kg. As exports increased to Indonesia and Vietnam, it led to supply shortage in the State for at least a month. Prices of other grocery items remain stable.

The recent flooding in Thoothukudi, Tirunelveli, Kanniyakumari and Tenkasi have damaged homes, offices, businesses and also crops. This has to led an acute supply shortage in urad dhal, maze, millets, green moong and chillies.

R Punniappan, a trader at Koyambedu wholesale market, stated, “For over a week, grocery sales have been down as priority is given to home appliances like fridge and washing machine. Usually, both retailers and customers buy more than a kilogram of dal or for the whole month but now they buy only what’s required for a day or two.”

Punniappan concurred and added: “Those who used to purchase once a month in large quantities have now split their expenses and buy 3-4 times a month.”

However, traders are expecting brisk sale from mid-January after the first crop cultivation begins in TN. Though the rates of groceries have not surged abnormally in the city, the sale volume has dropped marginally.

“The floods have damaged many commodities in the store, which had to be replaced at a huge cost. Now, our shop, which was devoid of much sales for the past 10 days, is receiving customers as usual. Usually, during the festival season, sales would be brisk. But, after the cyclone, people are buying in fewer quantities and whenever required,” explained M Vignesh, who owns a grocery store in Nungambakkam.

S Jagadeeswari, a daily wager at Saidapet, lamented: “We spend Rs 4,000-5,000 each month for essential things, and Rs 10,000- 15,000 to buy vegetables and groceries. Even with the income from my husband and me, we struggle to make ends meet. After the flood, we had to reduced our quantity to somewhat manage household expenses.”

Mechanics flooded with cyclone-hit vehicles

During the cyclone-induced floods, one of the common issues faced by the public was that their vehicles either submerged in the water or broke down during transit.

Even after three weeks, the automobile repair units in Chennai and Chengalpattu districts are finding it difficult to finish repairing vehicles.

A good number of vehicles brought to the mechanic shops were fully damaged and resemble like scrap, admit executives attached to major workshops dealing with SUVs and Sedan.

“After the floods, there was a high inflow of vehicles for repairs and most vehicles had to be cleaned at different levels. Around 20 vehicles arrived every day after the rains but we could repair only 5/day. For vehicles that were submerged, silencer, fuel tank and other fitments had to be cleaned,” said Vinayaka Murthy, Saravana automobiles, Otteri.

Such flood-affected vehicles would run for 2-3 months but after that, there will be issues with the engine and it must be serviced again. “Before floods, the rate for cleaning the vehicle was Rs 150 but as the workload increased, it now costs Rs 300-350,” he added.

When contacted, the company said it would take more than two months to clear the entire backlog, said K Kamal, a resident of Velachery.

“As it’s a local mechanic, he could not give me the bill so there is no chance of getting insurance also. Many people who were affected due to the floods could not get the insurance due to such reasons and were forced to pay from their pocket,” he added.

R Elangovan of Mudichur had given his two-wheelers for repair three weeks ago but he hasn’t received them yet as the mechanic had almost 20-25 vehicles to be repaired. Most workshop owners have not given back the vehicles because of the same reason.

“Only those vehicles that could be repaired were serviced, and that too, if spares were available. Vehicles fully damaged were changed to scrap. The demand for the spare parts has also surged after the floods,” said PT Mani, proprietor, Mani Car Parts, Pudupet.