The CE and HA industry seems to be heading for disruptive days ahead! Competition is getting intense as brands such as Xiaomi, Skyworth, Mitashi, Gome, Thomson, TCL, and Blaupunkt, to name a few, plan aggressive presence in the Indian market. E-commerce brands too are pushing hard with their respective private labels offering the entire spectrum of products, for instance MarQ from Flipkart. This is in the backdrop of manufacturers hesitating to increase prices, while confronted with shrinking margins as the rupee depreciates further directly impacting import bills. Lurking in the shadows is the possibility that in keeping with the Make in India initiative, the government is considering increasing import duties implying even higher costs.
ANAROCK Retail’s recent report, Rebirth of Retail Malls: New, Improved, and Revitalized cautions the vast brick-and mortar dealer fraternity of the edge that the lack of physical outlets may give online shopping in tier-II and tier-III cities. With household incomes expected to cross Rs. 800 billion in tier-II cities and Rs. 400 billion in tier-III cities by 2020, the dealers must keep the Great India Mall Story alive, and not miss the bus as the purchasing power in these cities increases.
The BARC India 2018 survey released recently, with the findings that TV homes in the country saw a 7.5 percent jump, outpacing the growth in number of households at 4.5 percent, is encouraging. Homes with a TV in urban India grew by 4 percent against the 10 percent growth of their rural counterparts. India currently has 298 million homes, of which only 198 million own a TV set.
Some consumer spending is being cornered by the ever-responsive water purifiers industry, and this trend is expected to continue as the segment grows at a CAGR of over 21 percent during 2017–2021. Air purifiers are next in line.
While the CE and HA makers had put detailed marketing strategies in place as we moved into the festive season, pressure has now increased on most brands, as Onam was a total wash-out this year, with floods in Kerala having kept the consumer away. Durga Puja, Dussehra, and Diwali must not disappoint!