The term consumer durables refers to all those goods which are hard goods and has a life expectancy of at least 3 years it includes goods which we use for domestic use such as televisions refrigerators air conditioners washing machine etc .With the rise in population and increase in disposable income due to the economic boom the consumer durables market has achieved staggering growth over the recent years. The consumer durables market is one that is dominated by the MNC’s and they contribute to around 65% of the total market share. The current size of consumer durables industry is around 350 billion and is majorly dominated by Korean majors such as LG Samsung etc. The consumer durables industry may be classified into two segments consumer electronics and consumer appliances.
Consumer durables industry in India
The main players
The Indian consumer durables market is majorly ruled by the Korean majors such a Samsung, LG etc .LG holds leadership in the refrigerators market with 23% market share closely followed by Videocon and Samsung. The mobile phone market which was once ruled by Nokia is currently ruled by Samsung followed by LG. There are a large number of players who are currently there in this market .In case of flat panel TV’s Sony, Samsung and LG have about the same market share of around 21% making the market all the more competitive.
As has been said earlier several factors have contributed to the growth of this sector this include 1)Rise in disposable income :With the Indian economy booming and growth of the middle class the disposable income with the Indian population has been on the rise this along with reduction of import duties and reduction in price of many of these consumer goods has resulted in increased consumption of these. 2)Easy availability of consumer financing : Another factor which is promoting growth in this sector has been the large scale promotion activities which includes various financing option and deals. 3) Existing potential in rural markets: Rural markets seen a big growth in the last few years. This market is expected to grow by about 40 to 45 percent in the near future. This is especially true about products like mobile phones televisions and music systems. 4) Increasing share of organized retail: The increasing amount of investment in organized retail is yet another thing that has helped in growth of the consumer durables market. If the 100 % FDI in retail business is accepted more investment is bound to come which will further increase the growth in this sector. 5) Effects of entertainment and media: The growth in entertainment industry yet another factor which has given impetus to the consumer durables industry. This is because the entertainment industry directly affects the lifestyle of people. 6) Consumer preferences
Clusters in india
In addition to the larger plants in India by the major players like Samsung and LG the government is also promotion the growth of industrial clusters which consists of smaller SME’s these are the following. The building of these clusters in India has been a joint work by the central and state governments and there is little variation in the facilities provided by the SEZ’s. The additional facilities provided by the individual states like roads electricity and other facilities greatly impact the growth of these SEZ’s.
Large Unit Centr ed/ Vertic al/ Horiz ontal/ Both
Potenti al for Techn ology Upgrad ation
Expo rt Pote ntial
No of Unit s in the Clu ster
Annu al Turn over
Andhra Prades h Andhra Prades h Andhra Prades h Andhra Prades h
Ventima lta, Srikalah asti, Chundu r Macherl a Hydera bad Hydera bad Chundu r, Kavadig uda, Charmi nar,Vija yawada Wazirpu r, Badli Naraina & Okhla Okhla, Wazirpu r Flatted Factorie s Comple x Kirtinag ar &...
References: 1)CCI survery report 2012 on consumer durables 2) http://stockshastra.moneyworks4me.com/consumer-durable-sector-analysis-and-review-of-indianproduct-companies/ 3) http://kadence.com/consumerDurables.html 4)UNIDO
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