ailability of newer
ariants of a product:
onsumers are spoilt for choice when itcomes to choosing products. Newer variants of a product will help a company in getting theattention of consumers who look for innovation in products.
The consumer durables industry is highly price sensitive, making pricethe determining factor in increasing volumes, at least for lower range consumers. Formiddle and upper range consumers, it is the brand name, technology and product featuresthat are important.
ailability of financing schemes:
Availability of credit and the structure of the loandetermine the affordability of the product. Sale of a particular product is determined by thecost of credit as much as the flexibility of the scheme.
Rise in the share of organized retail:
Rise in organized retail will set the growth paceof the Indian consumer durables industry. According to a working paper released by theIndian
ouncil for Research on International Economic Relations (I
RIER), organizedretail which constituted a mere four percent of the retail sector in FY07 is likely to grow at45-50% per annum and quadruple its share in the total retail pie 16% by 2011-2012. Theshare will grow with bigger players entering the market.
ertising and brand promotion:
Sales promotion measures such asdiscounts, free gifts and exchange offers help a company in distinguishing itself from others.
e season sales:
Demand for color TVs usually pick up during the festive seasons. Asa result most companies come out with offers during this period to cash in on the festivemood. This period will continue to be the growth driver for consumer durable companies.
CHANGING ATTITUDES OF TODAYSCUSTOMERS
Today customer likes to indulge in buying spree. No more the customers buy only to fulfilltheir basic needs and emphasise on savings itself.
Indian consumers have become value sensitive and are not much pricesensitive as was the case earlier. If they feel that a particular product offers them more valueand its price is high, even then they are willing to buy the product.
Culture , tradition and
The Indian consumers strictly follow their culture,tradition and values, as a result of which foreign companies were forced to give an Indiantouch to them in order to succeed in India. McDonalds, MTV, Pepsi, Star TV,