Consumer Durables Industry overview

Consumer durables refers to those consumer goods that do not wear out quickly and provide
long-term usefulness. Electronic goods, kitchen appliances, home furniture and leisure
equipment are some of the popular and common examples of such items. The following 3
headings can be broadly categorized as consumer durables:
White Goods: Air conditioners, refrigerators, washing machines, audio equipment and
speakers are the main white goods
Brown Goods: Kitchen appliances such as chimneys, electric fans, grinders, iron,
microwave ovens, mixers and various other cooking ranges are mostly included in this type
of consumer durables.
Consumer Electronics: Some of the mostly used consumer electronic goods are DVD
players, MP3 players, mobile telephones, telephones, VCD players etc

Consumer Durables in India

Consumer durables market in India (US$
billion)
5
It is estimated that the consumer durables 0
market in India reached Rs 1 trillion (US$
4
15.5 billion) in 2017. The sustainable
0 46.
consumption / light electricity industry is 5
expected to reach Rs 3 trillion (US$ 46.54 3 15.
billion) by 2020. 5
0
2017

2020F

50 CAGR
India is one of the world's largest growing 0 41%
market for electronics. The Indian consumer
durables market is expected to grow to US$ 40
400 billion between 2019-20 at 41% CAGR. 0
40
Exports from India to consumer electronics 0
30
reached US$385.15 million in FY18. 10
0 0
FY17

2020F

1 CAGR
India has the third biggest television industry 5 9.8%
in the world. The television industry in India is 1
expected to grow over CY16-20 at a CAGR of 0
9.8 percent. It is estimated that television 10.19 11.34
industry in India reached Rs 660 billion (USD 13.31
10.19 billion) in CY2017 and projected to
reach Rs 862 billion (USD 13.31 billion) in CY201 CY201 CY2018 CY2020
CY2020. 6 7 E F

Source: Makeinindia, DeitY, Edelweiss research, FICCI-EY Re-imagining India's M&E sector
THE CONSUMER DURABLES MARKET IS SPLIT INTO TWO KEY SEGMENTS

EVOLUTION OF THE INDIAN CONSUMER DURABLES SECTOR

CONSUMER DURABLES REVENUE & GROWTH

In 2017, the market for sustainable consumer

goods in India reached Rs 1 trillion (US$ 15.5
billion).
In Q2 FY18, consumer durable sales increased
by 13%, in Q3 FY18 by 20% and in Q4 FY18
by 16%.
Around two - thirds of the total revenue comes
from the urban population and the rest comes
from the rural population.
Godrej Group, Mirc Electronics, Blue Star and
Videocon Industries are just a few of India's
major consumer - sustainable players
During the 2018 Diwali festive season, the
volume sales of refrigerator television and
washing appliances increased by 8-10 %. India
was the third largest smartphone market in the
world in 2017, with smartphone shipments
increasing to 124 million units by 14 percent
year-on-year. Consumer durable index under
the Index of Industrial Production grew 8 per
cent in January 2019.
Source: Electronic Industries Association of India

URBAN- RURAL SHARE SPLIT UP

Source: Ministry of Urban Development, Ministry of External Affairs

CONSUMER ELECTRONICS – KEY PRODUCTS

CONSUMER APPLICATIONS – KEY PRODUCTS

KEY PLAYERS IN THE CONSUMER DURABLES SECTOR.
KEY TRENDS IN THE CONSUMER DURABLES SECTOR

THE CONCEPT OF CONNECTED SUPPLY CHAIN

GROWTH DRIVERS

POLICY SUPPORT AIDING GROWTH IN THE SECTOR

LIFE’S GOOD SO FAR…
Twenty years ago, LG, India's then barely known Korean company,
entered the country with a mission to become a serious player. The
Indian market, with limited global competitors and the heady
tailwind of success behind them in their own and other Asian
markets, was ripe for taking for LG. The first product range it
launched in India were televisions, fridges, washing machines. Built in 1997, the company is
based in Greater Noida, India. LG Indian Pvt Electronics. Ltd. operates as a LG Electronics
Inc. subsidiary. All LG transactions takes place through dealers.

PRODUCT PORTFOLIO
LG COMPETETIVE ADVANTAGE

Source: DIPP, Aranca Research

Porter’s Five Forces Framework Analysis for LG