All geared up and conquering the 5th largest position in the consumer durables market, India is growing at the average rate of 15 percent per year. India undoubtedly is one of the largest growing electronics Market in the World and ranks 3rd largest when it comes exclusive to the TV Industry. Electronic items that were formerly considered as luxury goods for a long period of time have become basic necessities of sorts.
What has led to the growing demand?
Some key reasons that have propelled the growing Demand include Rising Disposable income
and easy access to credit; Lenders’ kiosks have been set up in almost every electronic outlet in India in a bid to encourage aspirational and price-sensitive consumers to buy products at minimal or no interest costs without furnishing any collateral that makes it significantly hassle-free to own these goods. Next Government’s initiatives towards urbanization and transmission network augmentation, electric supply channels have been able to cover the previously underserved/unnerved regions of India pretty considerably.
Lastly, the wide usability of Online Sales and also the rise in working-age population has stimulated the demand. Not to miss, consumer durables are one of the most sought-after products, especially during the festive season. Furthermore, when it comes to TV, the digital disruption of the television industry is at its peak. Streaming video is changing every existing relationship in the TV value chain, redefining the role of TV from the traditional ecosystem.
Overall, the sector over a period of time has also attracted increased Investment which has led to a strong foothold on production, Distribution and R&D. With growing sales, there is a noted disparity among the rural and urban contribution to the Consumer Durables market. The Rural market contributes only 33 percent to total sales, which clearly indicates the huge untapped unexplored markets with minimum penetration.
Owing to a favorable changing consumption trend and potential size of the market, the rural areas provide a lucrative investment opportunity to the private companies, which is why some of India’s largest consumer durable companies serve one-third of their consumers from rural India.
The sector at the same time period has also seen a consolidation from unorganized retail to modern durable retail chains and e-retailers. Advancement in technology and higher competition is driving price reductions across various consumer durable product segments such as refrigerators & TVs.
With the initiative of “Make in India” there is an increased affordability of products with cut-throat competition. Manufacturers too have been trying to bring new technologies, differentiating to the market as against the competition which has also led the focus on energy efficient and environmentally friendly products.
Technological obsolescence is a big cause of concern. Consequently, companies have little choice besides spending heavily in innovations and launching new products (or existing products with new features) at regular intervals throughout the year. What is expected from the future is mostly growth and innovation.
However, challenges on various aspects will always be inexorable as Indian Market remains a matured market with cutthroat competition on innovation, quality and price. Companies should focus upon growing themselves by adapting to the ever-evolving market scenario and the anonymous hindrances.
They always have this ultimate power of turning these inevitable deterrents into life changing opportunities. What they can do is, never stop innovating themselves and bring new ways and products to meet the escalating needs of consumers.― PCQuest