Essay About Consumer Goods And Non-Essential Consumer Durables Products

Consumer Durables Indian Industry Analysis
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INDIAN CONSUMER DURABLES INDUSTRY ANALYSISConsumer durables refer to those consumer goods that do not quickly wear out and yields utility over a long period of time. Some of the common examples of these kinds of goods are electronic goods, kitchen appliances, home furnishings and leisure equipment etc. Evolution of the Indian Consumer Durables Sector[pic 1](Source: Financial Express, Appliance Magazine)The consumer durables industry can be categorized into two segments as follow:Consumer Appliances (White Goods)Consumer Electronics (Brown Goods)Air ConditionersTVsRefrigeratorsAudio and Video systemWashing MachinesElectronic accessoriesSewing machinesPCsWatches and clocksMobile phonesCleaning equipmentDigital cameraElectronic fansCD and DVD playersMicrowave ovensCamcordersOther domestic appliancesMarket Share by Segment [pic 2](Source: Corporate Catalysts (India) Pvt. Ltd)Growth ProspectsWith the continuous inflow of disposable income and the advancement of technology, need for the varied consumer durable goods is increasing. This is leading to a strong competition among the different consumer durable brands available in India as well as the price gap between the same consumer goods from different companies are narrowing down. Day by day these goods are becoming cheaper. The rural and urban Indian market of consumer durables has been growing at a rate of around 15 % on an average.[pic 3]Indian Consumer Durable’s market is expected to double to $12.5 billion in FY15 from $6.3 billion in FY10 (CAGR= 14.7%). This sector is expected to grow to $20.6 billion by 2020 and become the fifth largest in the world by 2025India is likely to emerge as the world’s largest middle class consumer market with an aggregated consumer spend of nearly US$ 13 trillion by 2030. (As per a report by Deloitte titled India matters: Winning in growth markets)Share in the consumer durables market in India as of FY15Urban market accounts for the 65% of total revenues in the consumer durable’s market in India. Rural market accounts for remaining 35% of total revenue. Urban Market: Demand for non-essential consumer durables products, such as LED TVs, Laptops, spilt ACs, is expected to increaseThe rural consumer durable market is growing at the annual growth of 25%  Rural Market: Consumer durables such as refrigerators and consumer electronics goods are likely to witness growing demand as the government plans to invest in rural electrification. Rural and semi-urban markets are likely to contribute a majority of consumer sales. SWOT Analysis[pic 4][pic 5][pic 6]k[pic 7][pic 8]Consumer Electronics – Key Products[pic 9]Consumer Appliances – Key Products[pic 10]Major Players in Consumer durables market in IndiaSamsung: TVs, home theatre systems, DVD players, mobile phones, digital cameras and camcorders, refrigerators, ACs, washing machines, microwave ovens and computers SONY: TVs, projectors, DVD players, audio systems, home theatre systems, digital cameras and camcorders, computers, video-gaming products and recording mediaPHILIPS: TVs, home theatre systems, DVD players, audio products, personal care products, household products, computers and phones BLUE STAR: ACs, refrigerators and specialty cooling products LG: TVs, audio-visual solutions, computers, mobile phones, refrigerators, washing machines, microwave ovens, vacuum cleaners and ACsGODREJ: Refrigerators, ACs, washing machines, microwave ovens, DVD players, digitalimaging products and audio-visual products VIDEOCON:  TVs, DVD players, microwave ovens, refrigerators, washing machines, ACs and power backup solutions ONIDA: LCDs, washing machines, DVD players, ACs, microwave ovens, mobile phones, projectors and display productsWHIRPOOL: Refrigerators, washing machines, microwave ovens, water purifiers and power backup solutions Notable Changes in the consumer durables sector[pic 11](Source: CEAMA, India Retail Report)PORTER’S five forces analysis[pic 12][pic 13]Strategies AdoptedPowerful Competitive strategiesSamsung is more focusing on product innovations and diversification than LGSONY is focusing on both quality and technologyMarketing StrategiesThe firms are now offering combo products instead of discounts to attract customersSuch kind of offers help manufacturers to boost sales and also ensures savingsOccasion based marketingIndia, being land of different cultures and festivals, therefore customers are offered great dealsSuch strategies are adopted to enhance revenues plus to maintain goodwill among the buyersGrowing demand and Policy Support driving Investments[pic 14][pic 15][pic 16][pic 17][pic 18][pic 19][pic 20]