Consumer Durables Industry
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
An overview
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The main players
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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.
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Growth Drivers
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
Consumer durables industry in India
An overview
Source[2]
The main players
Source[2]
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.
Source[2]
Growth Drivers
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
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