Demand for Consumer Durables in Rural Areas

Only available on StudyMode
  • Download(s) : 1061
  • Published : January 4, 2011
Open Document
Text Preview
DEMAND FOR CONSUMER DURABLES IN RURAL MARKET
(A STUDY WITH SPECIAL REFERENCE TO INDORE DISTRICT)
The Indian consumer durables segment can be segregated into consumer electronics (LCDs,LED’s,Ctv’s, home theater systems,etc.) and consumer appliances (white goods) like refrigerators, washing machines, air conditioners, microwave ovens, dishwashers and small home appliances. Television, Refrigerator and Air-conditioner have penetration of around 25 per cent, 17 per cent & 4 per cent respectively in the rural . 

CONSUMER DURABLE INDUSTRY|
| | |
CONSUMER APPLIANCES| CONSUMER ELECTRONICS|
WHITE GOODS| KITCHEN APPLIANCES/BROWN GOODS| CONSUMER ELECTRONICS| REFRIGERATORS| MICROWAVE OVENS| COLUR TV'S|
WASHING MACHINES| CHIMANEYS| LCD TV'S|
AIR-CONDITIONER'S| MIXER GRINDER'S| LED TV'S|
AUDIO SYSTEMS| IRON| DVD PLAYER'S|
SPEAKER'S | COOLER'S| VCD & MP3 PLAYER'S|

 India’s rural consumer durable market will witness an annual growth of 40 per cent in the next fiscal 2011-12, as against the current growth rate of 30 per cent owing to the change in lifestyle and higher disposable income of rural India which has fascinated the consumer durable market according to a study “Rise of Consumer Durables in Rural India” undertaken by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). 

“Around 35 per cent of the total sales of consumer durable items come from rural and semi-urban markets, which will grow by 40 to 45 per cent in the near future. The consumer durable industry is growing at a fast pace and sees a strong demand in the coming period with the growing affordability of products as well as general buoyancy in the economy”, According to ASSOCHAM. 

The market for consumer durables is estimated at Rs. 300 billion and is expected to reach Rs. 500 billion by 2015. The urban consumer durables market is growing at an annual rate of nine to 12 per cent, the rural durables market is growing at 30 per cent...
tracking img