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55066764 Report Home Utility Furnishing Products

55066764 Report Home Utility Furnishing Products

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Published by Meeinal Zaedi

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Published by: Meeinal Zaedi on Jan 29, 2013
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01/29/2013

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Market attractiveness analysis of the above-mentioned four segments has been done based on

factors like Industry Growth Stage, Growth of Customer Segments, Growth in Allied Sectors,

Competitive Scenario, Potential Entry Barriers Scale of Investments required etc. The findings

from this analysis are summarized in the table below:

Market Segment

Market
Attractiveness

Main Criteria / Advantages

Tableware-

Beverage Range

Demand is huge and it‘s the fastest growing category (more than 20%

p.a.); competition is high ;Both domestic & institutional customers
purchase products in this category for personal as well as gifting
purpose; entry barriers are minimum and customers change products in
this category very often; investment required in terms of plant setting &
manufacturing cost is less than other categories; margins are low

Tableware-

Dinnerware

Demand base is increasing with the increase in possession of lifestyle
products; few players in the organized market; growing product category
(around 20% p.a.) ; both domestic & institutional customers purchase
products in this range; Investment required is more than in beverage
range category; margins are high

Tableware-

Barware Range

Comparatively slow growing category; customer base is limited to
institutional customers (Hotel & Catering Industry) & upper middle class
segment in domestic customers; investment required is more than other
categories; competition is less; margins are high

Plastic Storage
Container

Demand is huge in this segment; competition is high; growth is almost
stagnant at 12-15% p.a.; both domestic as well as institutional customers
purchase products in this category; investment required is low in this
product category; entry barrier is low; margins are low

INVESTMENT POTENTIAL IN INDIAN HOME UTILITY & FURNISHING INDUSTRY 84

Thus, Tableware is the most attractive category and within tableware, a new entrant should focus

upon Beverage Range & Dinnerware for entry in the Indian Tableware market.

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