Festive season sales
: Demand for colour TVs usually pick up during the festiveseasons. As a result most companies come out with offers during this period to cashin on the festive mood. This period will continue to be the growth driver for consumer durable companies.
Major hurdles and challenges plaguing the Indian consumer durables sector:
Threat from new entrants, especially global companies
: The domestic consumer durables sector faces threat from newer companies, especially from global ones whohave technologically advanced products to offer.
Rivalry and competition
: Presence of a large number of players in the domesticconsumer durables industry leads to competition and rivalry among companies.Threat from rivalry and competition poses a threat to domestic companies.
Potential markets remaining yet untapped
: A large segment of the domesticmarket, mostly the rural market is yet to be tapped. Tapping this yet untapped andunorganised market is a major challenge for the Indian consumer durables sector.
Threat from substitute products/services
: The domestic consumer durablesindustry is plagued by threats from substitute products. Easy accessibility totheatres/multiplexes, especially in urban areas has turned off the viewership from TVto a large extent. With the advent of a horde of FM radio stations, radio sets havenow substituted TVs.
Customer power with respect to availability of choice
: The availability of a wideproduct line on account of most products being homogeneous, poses a threat for companies operating in the consumer durables sector. Customers have the choice of both domestically produced and imported goods, with similar features.
Marketing and StrategyLast Updated: June 2009
With market liberalisation, increasing consumerism and the entry of more foreignplayers, Indian markets are seeing revolutionary changes. The Indian consumer israpidly evolving and is spoiled for choice by a host of international brands sellingtheir products at competitive prices.According to a study by the McKinsey Global Institute (MGI), India's middle class willswell by more than ten times—from its current size of 50 million, to 583 millionpeople—by 2025. And over 23 million Indians—more than the present population of Australia today—will be counted as billionaires. By 2025, India will also become the5th largest consumer market, surpassing Germany, moving up from the 12th positionit occupied in 2007.In the seventh annual Global Retail Development Index (GRDI) conducted in 2008,India stood second as the most attractive destination for retail investment. It isestimated that the Indian retail market will increase from US$ 330 billion in 2007 toUS$ 427 billion by 2010 and US$ 637 billion by 2015. Organised retailing comprises just 4.6 per cent of the currently estimated Indian retail market. However, thissegment grew nearly 40 per cent in 2007 and is estimated to increase to 22 per cent