Consumer Durables
Overview of the Consumer Durables Market
1. India’s Consumer Market
Demand for consumer durables in India has been growing on the back of rising incomes; this trend is set to continue even as other factors like rising rural incomes, increasing urbanization, a growing middle class, and changing lifestyles changes aid demand growth in the sector. The consumer durables market recorded revenue of US$ 7.3 billion in FY11 up by 15.9 per cent from the previous financial year. During FY03-FY11, the industry expanded at a CAGR of 12.2 per cent. Consumer durables market expected to expand at a CAGR of 14.8 per cent to US$ 12.5 billion in FY15
2. Categorization
Consumer durables is differentiated mainly into consumer electronics (brown goods) and consumer appliances (white goods). Consumer electronics can be further categorized as Televisions, Audio & video systems, Computers, Laptops, Cameras, Electronic accessories, etc. Consumer appliances can be further differentiated as Fans, Refrigerators, Washing machines, Microwave Ovens, Air Conditioners, Other domestic appliances, etc. Household Appliances Industry Size (in Billion Rs) Appliances | FY 04 | FY 09 | FY 14 (Predicted) | Color TV’s | 68 | 110 | 185 | Air Conditioners | 23 | 47 | 95 | Refrigerators | 31 | 51 | 81 | Washing Machines | 11 | 21 | 36 | Total | 133 | 229 | 397 | CAGR | | 11.5% | 11.6% |
3. Demographics
Urban markets account for the major share (65 percent) of total revenues in the consumer durables sector in India. Demand in urban markets is likely to increase for nonessential products such as LED TVs, laptops, split ACs and, beauty and wellness products while for rural areas there is a demand for refrigerators and consumer electronic goods. Significant increase in discretionary income and easy financing schemes have led to shortened product replacement cycles and evolving lifestyles where consumer durables, such as ACs and LCD TVs, are perceived as utility
1. India’s Consumer Market
Demand for consumer durables in India has been growing on the back of rising incomes; this trend is set to continue even as other factors like rising rural incomes, increasing urbanization, a growing middle class, and changing lifestyles changes aid demand growth in the sector. The consumer durables market recorded revenue of US$ 7.3 billion in FY11 up by 15.9 per cent from the previous financial year. During FY03-FY11, the industry expanded at a CAGR of 12.2 per cent. Consumer durables market expected to expand at a CAGR of 14.8 per cent to US$ 12.5 billion in FY15
2. Categorization
Consumer durables is differentiated mainly into consumer electronics (brown goods) and consumer appliances (white goods). Consumer electronics can be further categorized as Televisions, Audio & video systems, Computers, Laptops, Cameras, Electronic accessories, etc. Consumer appliances can be further differentiated as Fans, Refrigerators, Washing machines, Microwave Ovens, Air Conditioners, Other domestic appliances, etc. Household Appliances Industry Size (in Billion Rs) Appliances | FY 04 | FY 09 | FY 14 (Predicted) | Color TV’s | 68 | 110 | 185 | Air Conditioners | 23 | 47 | 95 | Refrigerators | 31 | 51 | 81 | Washing Machines | 11 | 21 | 36 | Total | 133 | 229 | 397 | CAGR | | 11.5% | 11.6% |
3. Demographics
Urban markets account for the major share (65 percent) of total revenues in the consumer durables sector in India. Demand in urban markets is likely to increase for nonessential products such as LED TVs, laptops, split ACs and, beauty and wellness products while for rural areas there is a demand for refrigerators and consumer electronic goods. Significant increase in discretionary income and easy financing schemes have led to shortened product replacement cycles and evolving lifestyles where consumer durables, such as ACs and LCD TVs, are perceived as utility