As rapid socio-economic changes sweep across India, the country is witnessing the creation of many new markets and a further expansion of the existing ones. India’s consumer market is riding the crest of the country’s economic boom. The Indian consumer durables industry has witnessed a considerable change in the past couple of years. Changing lifestyle with access to disposable incomes, easy finance options and a surge in advertising has been instrumental in bringing about a sea change in the consumer behavior pattern. According to a study conducted by FICCI on the Indian consumer durables industry, a shift in consumer preferences towards higher-end, technologically advanced branded products has been quite discernable. This shift can be explained by narrowing differentials between the prices of branded and unbranded products added with the high quality of after sales service provided by the branded players. The shift has also been triggered by the availability of foreign branded products in India owing to lower import duties coupled with other liberal measures as introduced by the government.
SEGMENTATION OF THE CONSUMER DURABLE INDUSTRY
The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. Instruments such as cell phones and kitchen appliances like microwave ovens are also included in this category. The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods.
THE KEY DRIVERS BEHIND THE GROWTH
The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. The key trends that impact the Indian Consumer Durables Industry today are reflected in the diagram.
Introduction of Samsung –
Samsung is known globally for its electronic products and it is one of the successful brands in the electronic industry. It is an established company almost all around the world. Samsung Electronics is a South Korean multinational electronics and information technology company headquartered in Samsung Town, Seoul. It is the flagship subsidiary of the Samsung Group. With assembly plants and sales networks in 61 countries across the world, Samsung has approximately 160,000 employees. In 2009, the company took the position of the world’s biggest IT maker by surpassing the previous leader Hewlett-Packard. Its sales revenue in the areas of LCD and LED displays and memory chips is number one in the world. In the TV segment, Samsung’s market position is dominant. For the five years since 2006, the company has been in the top spot in terms of the number of TVs sold, which is expected to continue in 2010 and beyond. In the global LCD panel market, the company has kept the leading position for eight years in a row.
With the Galaxy S model mobile phone, Samsung’s Smartphone line-up has retained the second-best slot in the world market for some time. In competition to Apple's ipad tablet, Samsung released the Android powered Samsung Galaxy Tablet. The Samsung Philosophy -
At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. Every day, our people bring this philosophy to life. Our leaders search for the brightest talent from around the world, and give them the resources they need to be the best at what they do. The result is that all of our products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the power to enrich lives. And that’s what making a better global society...
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