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A REPORT ON CONSUMER DURABLE INDUSTRY IN INDIA: AN ANALYSIS
PREPARED BY MUSTUFA ARSIWALLA
TABLE OF CONTENTS
2. Television: CTV………………………………………………………13.
5. Washing Machine…………………………………………………….21
6. Future Scenario………………………………………………………23
7. Conclusion & Recommendation…………………………………….25
they controlled nearly 90% of the market. consumer durable goods sector is fast emerging as an important segment of the economy. The growth rate of manufacturing and consumer goods industry normally surpasses that of agriculture and service sectors. the television segment is undoubtedly the largest . They were first superceded by players like BPL and Videocon in the early 1990s. Out of these. It is for this reason that the manufacturing and consumer goods durable industry is considered the backbone of economy. Allwyn. Consumer electronics is basically entertainment systems like television.000-crore consumer durables industry can be divided into two types: consumer electronics and consumer utilities. food processors. air conditioners. Consumption of manufactured consumer goods is recognized as one of most widely accepted measures of standard of living and quality of life. Consumer utilities are other household appliances like refrigerators. Consumer goods manufacturing industry provides the driving force for stimulating rapid economic growth. Rs 23. who invested in brand-building and in enhancing distribution and service channels. VCRs.With Indian economy increasingly witnessing structural transformation from a rural. agricultural one to more urban industrialized one. On most third world countries. Together. consumer durables like the refrigerator and television are most popular. with liberalization came a spate of foreign players from LG Electronics to Sony to Aiwa. Kelvinator and Voltas. washing machines. BACKGROUND Prior to liberalization. the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej. audio systems and home theater systems. Then. and vacuum cleaners.
Products like air conditioners are no longer perceived as luxury products. Products in the white goods segment come next to the CTVs in the purchasing hierarchy of the Indian consumer. demand for consumer durables has increased with rising income levels. changing lifestyles. increasing consumer awareness and introduction of new models. According to Indian Readership Surveys (1999-2004) the following durable categories have registered a healthy double-digit growth. Over the years. Durable Categories Television Sets Washing Machine Refrigerators Growth Rate (1999-2004) 16% 17% 14% Source: Indian Readership Surveys (1999-2004) While TV draws its share from both urban and rural refrigerators and washing machines are still inclined towards urban. Current Scenario . double-income families.segment. availability of credit.
MNCs continue to dominate the Indian consumer durable segment.yet low penetration INDUSTRY SIZE . introduction of state-of-the-art models.Most of the segments in this sector are characterized by intense competition. emergence of new companies (especially MNCs). • • • Steady growth of CE at 13-15% (’03–23%) HA falling behind CE on account of growth Steady growth of CE+HA . which is apparent from the fact that these companies command more than 65% market share in the colour television (CTV) segment. price discounts and exchange schemes.
102 billion. . washing machines.1m units. with an estimated annual turnover of Rs 39 bn during FY2005 with an estimated sale of 4. The Indian television industry has a size of around Rs 96 billion. Mirc Electronics Ltd.37m during FY2004 or around Rs 11 bn in value terms.. Philips (India) Ltd. MAJOR PLAYERS The major players in the consumer durables industry.Rs 23.05 million units and the B&W TV market at 2 million units during calendar year 2004. operating in different sectors such as air conditioners. Consumer Electronic industry has a size of around Rs. refrigerators & television: Blue Star Ltd.000-crore consumer durables industry can be divided into two types: consumer electronics and consumer utilities.1 m in volume terms. Refrigerators constitute the second largest product segment within the Indian consumer durables sector in India.. the CTV market was estimated at 9.. Washing machines sales in India aggregated an estimated 1. In terms of volumes.. 4-6 billion. and Rs 24 bn in value terms. comprising colour television (CTV) of Rs 91 bn and B&W TV market of Rs 5 bn and other markets (primarily video equipment) of Rs. Whirlpool of India Ltd. The size of the room Air-conditioners industry is estimated at 1.
LG Electronics India Ltd..BPL Ltd.. Videocon International Ltd. & Daewoo Ltd.. Sony Corporation Ltd. Thomson Ltd... . Samsung India Ltd.
Sector Brands in Home Appliance Brands in Consumer Electronic Sector .
5. 2. there are fewer players in segments like dishwashers and vacuum cleaners. The technology used by the company viz. The advertising and marketing strategy adopted by the players in the industry. 3. The capability of the company to service its products 'The discount schemes and consumer finance facility available 7. Demand is high during festive season and is generally dependent on good monsoons. The degree of distribution network in the market. 4. state-of-art technology or an older version. Cyclical and seasonal. They are: 1. The brand image of the product as perceived by the consumer. But the organized sector has gained substantial market share from the unorganized segment in recent years. There are certain factors in the consumer durables industry. However. which are considered as demand drivers. The ability of the company to introduce newer products and newer product features 6. The market positioning of the product 8. The cost competitiveness and pricing strategy of the company .DEMAND/SUPPLY Supply growth is high across all the segments.
And it seems that global appliance players who have established brands in the Indian market are likely to benefit from this great big push towards consumerism SUCCESS FACTOR FOR CONSUMER DURABLE INDUSTRY . 2. In the next 7 million households.50 percent own color TVs. Rural India too is set to see an increase in the number of high-income households.8 million to 139 million. In the next tier of affluent households .60 million households or 300 million consumers with the capacity to buy consumer appliances and other products is an attractive market for any global player. 3. in affluence terms. The financial strength of the players CONSUMER DURABLE: URBAN & RURAL INDIA 1. An additional 4. penetration of color TVs is 69 percent.6 million high-income households and 13 million middle-income households by 2006 to 2007 will take the number of rural households from 122. and 44 percent own washing machines. and 19 percent for washing machines. This constitutes a huge opportunity for marketers . 35 percent own refrigerators. 58 percent for refrigerators. In the top 5 million households. 82 percent own refrigerators. and 8 percent own washing machines.numbering approximately 12 million .9. 96 percent of households have color televisions.
4. On the other hand. 3. the large MNC players score over their Indian counterparts as they can always source technology from their parents. Knowledge of the local market: Indian consumer durables market is different from other markets. Samsung launched the 'Super Horn" brand after it discovered that Indian consumers prefer loud noise. 2. Good brand image: Perception of a particular brand plays an important role in purchase decision. Indian companies rely on the outside sources for their technology requirements. To achieve volumes. deep penetration of the market is necessary. Indian companies are better placed in this regard as they know the market pretty well. they have developed strong distribution channels. Indians do not have the buy. This means the technology input is gaining more and more importance. Indian companies score a point here as being in the market for a longer time. use . Volumes in this business are narrow and profitability comes from volumes.Indian consumer durables industry is going through a consolidation phase with MNC companies going in for strategies to increase market share. as the price involved is significant and unlike developed markets. Technology: Rising competition has resulted in major competitors introducing technologically superior products at competitive prices. Strong distribution network: Tough competition means that a proper mindshare of the consumer has to be maintained and the product has to be made visible. Certain success factors for this industry are identified as follows: 1. In this regard. A typical Indian consumer looks for value for money when he makes purchase of white goods. Hence understanding these peculiarities is important for the long-term survival. For example.
“The Indian consumer consumer’s evolution in the last decade has thrown up some interesting trends: 1. Kids graduating from pester power to decision makers. Consumer base becoming younger. All this is conveyed through strong brand awareness. 4. Nearly a third of the country’s population is under the age of 14years.and throw mindset. Multi-tasking consumers fighting paucity of time and new consumer trends. consumer also looks for reliability of the product. Consumer Outlook: The Change in Consumer India is a country in a hurry – changing continuously and also trying hard to keep pace with these changes. Consume wants to be treated as an individual not as part of a large physical mass and the consumer looks for a ‘post buy’ relationship to enhance the value of her brand decision making. NCAER’s The Great Indian Middle Class Survey: A few interesting finding: . 5. Huge increase in High Income Groups and spend now-save later mentality leading to high disposable income. The ‘me too’ syndrome is no longer valid as consumers seek customized products. 2. 6. 3. Hence. People with buying power living longer and developing distinct health needs.
SWOT ANALYSIS: CONSUMER DURABLE INDUSTRY STRENGTH WEAKNESS .000 by 2010.6 million by the year 2006 to 2007. Middle class will rise to 12.2% in 1995-96 to 1. This is the first time that NCAER has defined the middle class as having an annual household income of Rs 200. the number of these rich households would increase by 250per cent to 1. Many of these rich and middle class households are located in rural areas and small towns too. 40.8%. from the current 2. The number of urban households in the high-income group will increase by 8.1.8%. 3.000 to Rs 1 million. Total number of urban households will increase from 49 million to 60 million by 2006 to 2007. They are expected to grow from 0.7% in 2010.3 million in the upper-middle-income group. and by 7. By 2005-2006. 2.
The sector's performance is highly dependent on monsoon and reforms.o Supply continues to outstrip Demand. Key drivers being Urban and Rural. goods segment. o Threats of cheaper imports from China and other South East Asian countries o Changes in Consumer Outlook from spend now-save later mentality leading to high . o Easy availability of finance has stimulated consumers to buy durables. o High Growth. o o Advancement of technology which gives the companies ability to introduce new products and new product features. Prices would continue to remain depressed and margins will be under pressure. Developing new o Dozen companies operating in the white products for new markets. OPPORTUNITY o THREAT Diversification. which has failed often. reduction in excise duty and so on. Volatile performance of the agricultural sector have a negative impact on demand. Demand Cyclical and seasonal. o “Accessory to Necessary” Airconditioners are no longer perceived to be a item of luxury. o Government Policies in favour of Industry includes infrastructure development.
ENVIORNMENT ANALYSIS: PORTER’S MODEL POTENTIAL ENTRANTS MEDIUM In the CE industry. the critical success factors are brand image. and distribution networks. brand allegiance. .disposable income. although there are not prohibitively high costs of entry.
. BARGAINING POWER OF BUYERS HIGH With the intensification of competition the bargaining power of the buyer has increased. Of late.INDUSTRY COMPETITORS INTER FIRM RIVALRY HIGH The Indian industry consists of players of domestic origin as well as multinationals. the multinationals have gained a sizeable presence in the Indian CE market at the cost of domestic players.
SUBSTITUTES LOW TO MEDIUM The consumer electronics (CE) sector is characterised by continuous technology advances that may result in substitution within the product category. BARGAINING POWER OF SUPPLIERS LOW TO MEDIUM Most of the raw materials are .
Some high-end raw materials such as larger-size picture tubes for flat TVs are imported.available easily and in India. .
The initial TVs were all 20-inch (or 51-cm) sets. although the restrictions on foreign technology continued. A notable development was the launch of the 14-inch B&W TVs in 1984. in both rural and urban areas. After the ASIAD. .500-5.000 per annum. The birth of CTV in India can be traced to the Asian Games (ASIAD) held in New Delhi in 1982.TELEVISION: CTV BACKGROUND The television industry started in India in 1970 with the production of B&W TV sets. till 14-inch TVs were launched in 1984. The euphoria over cricket following India's victory in the Prudential World Cup in 1983 and in the Benson and Hedges cricket championship in Australia . The year 1983 saw the removal of restriction on capacity expansions and of the ceiling on capacity to be licensed. The Government policy on B&W TVs in the initial period was characterized by licensing of manufacturing units for capacity in excess of 10. For 13 years. which evoked an even better response from the market. this was the only size offered in the B&W TV market. Doordarshan Kendras were set up in many parts of the country. especially since they were affordable for households in the lower economic strata.000 per annum and encouragement to the small sector industry (SSI) sector to set up production facilities with capacities in the range of 2.
the Akai. and various State Governments came up with their own TV companies like Uptron. BPL and Mirc Electronics consolidated their presence in the CTV market through their focus on both product promotion and technology--the latter through collaborations with international bigwigs (BPL with Sanyo.in 1985 (with the high-quality telecast of Channel Nine) provided a great impetus to CTV demand. the Indian TV market has witnessed the entry of global brands like Akai. Aiwa. also diversified into CTVs. Samsung) entered on their own and quickly captured the imagination of the market with innovations in product quality and features. By 1989. The second phase of CTV growth came on the heels of the 1991-initiated economic liberalization programme. like Weston. and Videocon with National. The other multinationals (including Sony. Japan. . Sansui. Older players in the B&W TV market. Keltron and Meltron. 235% in France. and later sold to Videocon). This was also the period when private and more aggressive domestic players like Videocon. At present. LG. there were around 200 players in the market. 250% in Japan and 333% in US. 11% in Brazil. The Government encouraged this sector. INDIA V/S GLOBAL The penetration levels of televisions in India is just 24% as compared with 98% in China. Japan. LG. Sansui and Toshiba brands are marketed by Videocon (Akai was initially with Baron International. Dyanora and Televista. Samsung and Toshiba. Japan). after which there was a reduction in both excise and import duties. Since the mid1990s. while LG and Samsung operate through fully-controlled Indian operations. Aiwa is now a subsidiary of Sony. with the opening up of Indian skies to foreign satellite channels in 1991-92 and the coming of cable TV. the demand for TVs grew further. Simultaneously. Mirc Electronics with JVC.
" PLAYERS AND MARKET SHARE PLAYERS AND MARKET SHARE The major brands in the Indian CTV industry are LG. Panasonic. Toshiba Onida and Igo Sony LG Samsung . Onida. The companies marketing their CTV products under these brands are as follows: Company BPL Limited Videocon International Limited Mirc Electronics Limited Sony India Private Limited LG Electronics India Limited Samsung India Electronics Limited Brands BPL Videocon. the colour television is replaced after every 2-3 years. Sansui. Videocon. Onida. German company G-Hanz and Japan's Hitachi having leaped into the colour TV market. Aiwa. Sansui. Thomson and Daewoo. Akai. BPL. for us Indians. Akai. Sharp. Competition has also intensified with Chinese consumer electronics player Haier. Samsung. Sony. the period of replacement varies between 10-12 years. Philips."In the west.
and Sharp have lost ground. once a leader with over 20 per cent market share. Texla. has dropped to 5. comprising colour television (CTV) of Rs 91 bn and B&W TV market of Rs 5 bn. Second. Thomson. Samsung. up from 43 per cent a couple of years ago.2 per cent. The top four players (LG. and Beltek have lost market share. . Videocon group and Onida) have consolidated their position. they account for 69 per cent of the market. multinationals brands like Sony. Weston. BPL. regional brands like Oscar. Panasonic. Today.National Panasonic India Limited/Matsushita Television and Audio Private Limited Kalyani Sharp India Limited Thomson Consumer Electronics India Limited Panasonic Sharp Thomson The Indian television industry has a size of around Rs 96 billion. Two or three factors have caused this change. Third. The reason behind this is that the consumer electronic and the CTV market is characterized by continue innovation and use of state of art technology which these companies have been unable to keep pace.
REFRIGERATOR BACKGROUND Refrigerators have been manufactured in India since 1950s. The government removed all restrictions. Post-liberalization. Kelvinator. . players like Godrej. a number of foreign companies entered the market and many domestic players also diversified into refrigerators. The situation changed after the liberalization of the Indian economy in the early 1990s. and licenses are no longer required. BPL and Videocon who already had a presence in the consumer electronics market. Earlier. Till the 1980s. and now there is no restriction on foreign investment. leveraged their strengths to enter the durables sector. the white goods sector was categorized as a luxury goods industry and was subject to oppressive taxation and licensing. Allwyn and Voltas controlled almost 90% of the market.
with the exception of televisions. INDIA V/S GLOBAL The penetration of household refrigerators in India. Hong Kong and Korea. Non-CFC refrigerators are manufactured in the country but because of their high initial cost. refrigerators have the highest aspirational value of all consumer durables. Manufacturers are encouraged to adopt environment friendly technology like usage of non-CFC (non. Refrigerators are presently being manufactured in two basic designs which are referred to as Direct Cool (DC) and Frost Free (FF) refrigerator. 165 Litres had a larger share and now units of capacity 185-300 Litres are having increasing market share. Till about two years back. The growth in this segment though marginal. around 80% in Thailand. the demand is somewhat sluggish.Chloro-Fluro-Carbons) refrigerant based air conditioners. When you compare the annual commercial sales of HVAC and refrigeration equipment in the US at US $ 200 per capita and in China at US $ 3 per capita with a dismal US $ 0. This accounts for the high growth rate of the refrigerator market. the fifth largest consumer durable in terms of penetration. there is a shift in Refrigerator Market. Australia. Singapore. is 13% compared to well over 90% in Malaysia.In India. Capacity-wise also. close to 40% in Philippines and China and 20% in Vietnam and Indonesia. has been driven by factors like availability of low priced models as due to competitive pricing and a growing middle class.25 per capita in India. In so far as new technology is concerned. The direct cool segment continues to dominate Indian refrigerator market compared to more expensive frost-free models. Manufacturers of refrigerators claim to have improved the quality of the product particularly the reliability of the Compressor. the concept of Frost Free refrigerator has been gaining popularity. PLAYERS AND MARKET SHARE .
Electrolux Kelvinator and LG compete for third and fourth position with market shares of 16 per cent and 14.1m units.The refrigerator industry has become highly competitive as a number of brands have entered the market and the consumer has a wide choice. Samsung (6). Videocon (11 per cent). Voltas and Akai are other significant players. According to FICCI Survey April-March 2003-2004 Whirlpool and Godrej are the top two players with market shares of 27 per cent and 20 per cent respectively. with an estimated annual turnover of Rs 39 bn during FY2005 with an estimated sale of 4. Electrolux and Allwyn Refrigerators constitute the second largest product segment within the Indian consumer durables sector in India. Co. Ltd. Company BPL Limited Videocon International Limited LG Electronics India Limited Samsung India Electronics Limited Whirlpool of India Ltd Godrej & Boyce Mfg. BPL (4). Akai LG Samsung Whirlpool Godrej Voltas Electrolux Kelvinator. Voltas Limited Electrolux Kelvinator Brands BPL Videocon.5 per cent respectively. .
Window air conditioners fit into the lower part of a window and can be moved from window to window and thus the name. Willis Haviland Carrier invented and secured the patent for a weather control concept . Window ACs.The Non Ducted products are divided into two parts: window ACs & the mini splits. Self-contained air conditioners are the large room air conditioners. consoles and selfcontained air conditioners. Central air conditioners also use electricity or gas. ducted ACs. packaged ACs.AIR-CONDITIONER BACKGROUND In 1902. They blow the conditioned air directly into the room and do not have air ducts leading to and from them. The three chief types are window air conditioners. Room air conditioners operate on electricity or gas and are enclosed in a single cabinet. life hasn't been the same. The ducted systems are divided into central plants. They can supply conditioned air to a number of rooms or to an . The airconditioner market is hotting up as more and more people appear to be convinced about the comfort of an air-conditioner (AC). Dr. The extremely hot summers have stirred the demand for ACs and the industry is experiencing a significant change. Window ACs account for about 54% of the total market for ACs with an estimated market size of about Rs20bn. Air-conditioner Types of Air conditioning products are divided into Non Ducted products & Ducted systems . Ever since.air conditioning.
INDIA V/S GLOBAL According to Refrigeration and Air-conditioning Manufacturing Association (RAMA) the penetration of household Air-Conditioners is abysmally low in India at around 2% compared to 20% in Indonesia. Fans blow the conditioned air through air ducts from the air conditioner to the rooms. .1 m in volume terms. Voltas.entire building from one central source. they can supply air of different temperature to different parts of a building. Central conditioners can also be zoned i. LG is the market leader with a market share of 29 per cent followed by Voltas (11) and by Carrier and Samsung (9. PLAYERS AND MARKET SHARE The size of the room Air-conditioners industry is estimated at 1. all the equipment for air conditioning a large area is located in one place. AC market is dominated by four major players—LG. According to FICCI Air Conditioners (AC) it reveals that Indian AC industry.e.2 each) in addition to other players like Hitachi and Videocon. 24% in China. 40% in Thailand. This reduces the cost of cleaning and repairing. Central conditioners have a number of advantages over other kinds. 45% in Malaysia. and Rs 24 bn in value terms. which has mainly dominated by players like Carrier and Voltas. has been taken over by the new MNCs in the last few years. For example. Carrier and Samsung.
Company Mirc Electronics Limited Videocon International Limited LG Electronics India Limited Samsung India Electronics Limited Whirlpool of India Ltd Godrej & Boyce Mfg. ltd. Brands Onida Videocon LG Samsung Whirlpool Godrej Voltas Electrolux Blue Star Daikin . Voltas Limited Electrolux Kelvinator Blue Star India Ltd Daikin industries. Co. Ltd.
digital intelligence. There is also a trend for purchasing smaller machines in the range of 3 to 4 kg.WASHING MACHINE BACKGROUND Washing machines as a consumer durable product has been in existence in India for the last 10 years. unique optical sensor and other such innovations and adaptations which are gradually being introduced by the indigenous manufacturers. In this industry. top loading machines sell in greater numbers than front-loading ones. which in recent times has been getting the attention of the users as more and more households have both partners working. in the Consumer Durable Sector the market for Washing Machines has grown quite fast. The customers now have a wide range of world class brands to choose from. The first accounts for a chunk of the market. The washing machine market consists of two broad segments . Major growth is projected to take place in fully automatic segment. During the last few years. capacity as compared to larger machines as there are more and more nuclear families rather than joint families. Consequently manufacturers have started paying more attention to this segment and have started introducing more features in their products. In regard to emerging new technologies in the washing machines sector mention may be made of aero power. Fully . it is the fully automatic segment. which accounts for above 23 per cent of the total market to about 30 per cent.semi-automatic and fully automatic. In terms of loading type. triple cascade tornado wash.
Water scarcity in many Indian cities and timely availability is another major issue. Many housewives in less affluent households prefer to wash clothes themselves rather than invest in washing machines. PLAYERS AND MARKET SHARE The refrigerator industry has become highly competitive as a number of brands have entered the market and the consumer has a wide choice. INDIA V/S GLOBAL The penetration level of Washing Machine is relatively low in India as compared to global due to many reasons. and due to price competitiveness. increase in number of working couples.automatic machines are gaining popularity with the change in lifestyle of consumers. increase in income. Some of the company and their brands are as follows: . However. it foresees that penetration of washing machine will rise by more than 6 per cent in the next two years.
Ltd.7 % market share in Fully Automatic Washing Machine and 33. May 2004) . Electrolux Kelvinator Brands Onida BPL LG Samsung Whirlpool Godrej Electrolux LG Electronics has registered a remarkable growth of 36 % in the Washing Machine Segment in H1 The Fully Automatic Washing Machines segment has recorded a remarkable performance where volumes have grown by 22% and value by 25% .Company Mirc Electronics Limited BPL Limited LG Electronics India Limited Samsung India Electronics Limited Whirlpool of India Ltd Godrej & Boyce Mfg.Here again LGEIL happens to be the undisputed leader with a 30. (Source: ORG-GFK.7 % market share in Semi Automatic Washing Machine . Co.
rising purchasing power of people with higher propensity to consume with preference for sophisticated brands would provide constant impetus to growth of white goods industry segment makes future of consumer durable industry beneficial will rise the expectation of consumer durable industry. 20 and 21 inches segments are expected to be the key contributors to the overall industry growth. The urban market is a replacement and up-gradation market now. room air conditioner market is growing at the rate of 18% per annum. has a two per cent penetration in case of refrigerators and 0. have plans to focus on these segments. improved lifestyles. By the industry itself the rural market is growing faster than the urban India now. offers plenty of scope and opportunities for the white goods industry. Majority of the companies. which accounts for nearly 70 per cent of the total number of households.FUTURE SCENARIO Rising rate of growth of GDP. . Rural India.5 per cent for washing machines. understandably. In the air conditioner segment. rural consumers should be provided with easily payable consumer finances schemes. Unleashing of Consumer Durable Industry • In TV segment. growth in disposable income. While the consumer durable market is facing a slowdown due to saturation in the urban market. the 14.
Demand for ACs in the long run will be robust due to rising income levels and also due to higher computerization. The expectations are also on the premise that the consuming class.• Domestic AC manufacturers plan to beef up their distribution and service networks. while MNCs will leverage on their brands and invest in highpowered advertising. is expected to grow at a faster rate. as a percentage of total households.5%). manufacturers plan to introduce energy-saving models in future. Given the fact that household penetration of ACs in the country is very low (0. Besides. • As per NCAER (one of the premier economic research agencies in India). * households . growth potential is enormous. Growth in even higher for other durable items like refrigerators and washing machines. the penetration of TVs is expected to increase almost three times by FY07 as compared to the FY99 level. '000*) Category TVs (colour) Refrigerators Washing machines Sewing machines 1998-99 Rural Urban 48 35 10 71 304 335 167 172 2006-07 All Rural Urban All India India 121 120 55 100 185 65 20 85 723 717 399 152 347 262 135 103 Source: NCAER. air conditioners are no longer perceived as luxury needs. This would benefit the consumer durable manufactures. As running costs of the AC are very high.
Consumer Electronic plus Home Appliances is expected at 15-20% next five years.• As per CETMA. .
Refrigerator and Air-conditioner have penetration of 24%. This means huge opportunity and untapped market.Yet an issue . It improves the quality of life of people by providing Entertainment / information / education / comfort and helps reduce daily chores. "Lo Penetration means opportunity: The consumer electronic and home appliance which forms the part of consumer durable industry is categorized by low penetration.CONCLUSION AND RECOMMENDATION It Contributes more than 5. particularly women. particularly for housewives. But the importance of the sector in National Economy remains unnoticed.5% to index of Industrial Production and provides jobs to lakhs of professionals. Semi Skilled and unskilled workers. 13% & 2% respectively. Skilled. Problem Areas: Some of the reason Attributable to Industry are as follows: Inadequate stress on R&D Quality . Television.
More emphasis to develop Rural Market.25th October 2004 . After Sale Service & Customer Satisfaction Action for Industry for Growth Commit sufficient resources for R&D Need to be more quality conscious Need to improve After Sales Services Need to Build economies of Scale Explore exports as a viable option. BIBLIOGRAPHY Business World : The BW Mega Consumer Satisfaction Survey 2004 .
com www.com .com www.etstrategicmarketing.blonnet.lge.com www. Impact Magazine – 15th Jan 2005 Internet www.indiainfoline.
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