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Consumer Durables Indian Industry Analysis

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Consumer 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 Conditioners



Audio and Video system

Washing Machines

Electronic accessories

Sewing machines


Watches and clocks

Mobile phones

Cleaning equipment

Digital camera

Electronic fans

CD and DVD players

Microwave ovens


Other domestic appliances

Market Share by Segment

[pic 2]

(Source: Corporate Catalysts (India) Pvt. Ltd)

Growth Prospects

With 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 $20.6 billion by 2020 and become the fifth largest in the world by 2025
  • India is likely to emerge as the world’s largest middle class consumer market with an aggregated consumer spend of nearly US$ 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 FY15

  • Urban 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 increase
  • The 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

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Consumer Electronics – Key Products

[pic 9]

Consumer Appliances – Key Products

[pic 10]

Major Players in Consumer durables market in India

  • Samsung: 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 media
  • PHILIPS: 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 ACs
  • GODREJ: 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 products
  • WHIRPOOL: 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 Adopted

  • Powerful Competitive strategies
  • Samsung is more focusing on product innovations and diversification than LG
  • SONY is focusing on both quality and technology
  • Marketing Strategies
  • The firms are now offering combo products instead of discounts to attract customers
  • Such kind of offers help manufacturers to boost sales and also ensures savings
  • Occasion based marketing
  • India, being land of different cultures and festivals, therefore customers are offered great deals
  • Such strategies are adopted to enhance revenues plus to maintain goodwill among the buyers

Growing demand and Policy Support driving Investments

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