A REPORT

ON

Consumer durable industry (vijay sales )

BY

MOHIT SUNIL SINGH

ENROLLMENT NUMBER – 19BSP1595

VIJAY SALES
 REPORT
ON
CONSUMER DURABLE INDUSTRY(VIJAY SALES)

BY,
Mohit sunil singh
ENROLLMENT NUMBER – 19BSP1595

VIJAY SALES

A Report submitted in partial fulfilment of

the requirements of

PGPM program of

IBS – Mumbai

Distribution List:

DATE OF SUBMISSION: 10/04/2020

Faculty Guide:dr davindra suri maam Company Guide:Rahul sir

 ACKNOWLEDGEMENTS

With immense please I, Mrs mohit sunil singh is presenting “consumer durable industry” a
SIP interim report submitted as a partial fulfilment of the requirement of PGPM program of
IBS – Mumbai.
I wish to thank vijay sales. For giving me the opportunity to work as a sales Intern and
explore the reality of the marketing which will surely prove to be helpful to me in future. I
would like to express my gratitude towards IBS Mumbai for providing me with this
opportunity.
I would like to thank my company guide, Mr. Rahul sir (HR Team) who played a very
important role in the learnings till date. Their constant monitoring and their knowledge
helped me to find my right path and work effectively. I would also like to thanks my faculty
guide from IBS Mumbai – dr davindra suri who constantly supported and gave feedbacks
and suggestions to improve my work during internship.
I would like to thank the entire team of vijay sales who helped me continuosly during my
internship and make my work more easy by guiding me throughout the time.

Mohit singh
19BSP1595
Vijay sales
Vijay sales is an Indian electronics stores chain based out in Mumbai .Its headquartered is in
jogeswari Mumbai.Vijay sales started as a small tv showroom in mahim by MRS Nanu Gupta
IN 1967.It currently operates more than 100 stores across the region of Maharastra
,Haryana ,UP,Delhi, Andrapradesh and Telangana.Vijay sales has more than 3500+ products
to choose from and is located in prime location all across India and has 31 stores in
Mumbai,12 stores in Pune ,15 stores in Gujarat ,16 stores in uttarpradesh ,8 stores in Haryana
,4 stores in uttar Pradesh , 8 stores in Andra Pradesh and 12 stores in Telangana.

History:
Vijay sales was founded on 1967 as a small Television Showroom by Mr. Nanu Gupta
in Mahim, Mumbai as Vijay Television Store. In 1981 it changed its Name and Corporate
structure to present it. Vijay Sales has long since evolved into one of Mumbai’s leading chain
of electronic superstores, now having expanded to major cities across India. by 2012 it has
Spread from Mumbai to Pune, Surat, Nagpur, Delhi

and all other major cities in India. It has since got many awards for its service and Goods it
has delivered. It has launched a special Apple products section and stores. In 2019 vijay sales
acquaried a chain of consumer durable retail store in Telangana and Andra pradesh under the
name of TMC (TIRUMALA MUSIC CENTER .

Corporate Structure:-
Vijay sales corporate Headquarters in Jogeshwari west Mumbai .. It is head by Nanu Gupta
who is founder  and Chairman of Vijay sales and is followed by his two sons Nilesh Gupta
who is CEO of the company and Ashish Gupta who is CFO of the company. By FEB 2020
Vijay sales has more than +5000 employees and a well connected supply chain and
Warehouses at it disposal. It also maintain an online Electronic shopping site to stay ahead of
its competitors.
SWOT ANALYSIS OF VIJAY SALES
Below is the strength, weaknesses ,opportunities and threats of vijay sales .

Strength

 There are Wide range of products at vijay sales serve all categories with strong focus
on technology
 Vijay sales has established distribution network in both urban and rural areas
 In the domestic market it is taking rapid growth in the low key products like notebook
computer and mobile handsets.
 Presence of all well known brands
 Attractive promotional offer

Weakness

 Vijay sales haven’t reach in all the major cites across various states.
 Investment hassels and high additional maintance/operational cost.
 Faces huge compitions .
 Low purchasing power of consumers

Opportunities

 Domestic expansion can help to capture the large offline market

 Large opportunities on service,demo ,and resell market
 Store enchancement for better customer experience
 Using latest technology can help analysing customer buying pattern
 Giving end to end customer experience from helping them to buy .
 More advertising can be done to increase the brand visibility.

Threats

 Indian customers is price sensitive and aware of market price

 Difficult to compete with ecommerce vendors like flipkart, snapdeal .
 Continuous improvement in technology means difficult inventory management.
EIC ANALYSIS (CONSUMER DURABLES INDUSTRIES)

SUMMARY

 Indian appliance and consumer electronics market stood at Rs76,4000 crore in 2019
 it is expected to increase at 9 percent CARG to reach RS 3.15 trillon in 2022.
 According to retail chain brand there is 9 to 12 % increase in the sale of consumer
electronics in Diwali season 2019.
 Electronics hardware production in the country increased from Rs 1.90 trillon $ in FY
2014 in FY 2018.Demand in FY2024 will reach to 400 billion $.
 Consumer durable exports from india reached at 451 million $.

The consumer durables market is split into two segments

 consumer electronics (brown goods)

 consumer appliances (white goods)

A) CONSUMER ELECTRONICS consists goods like

 televisions
 audio video system
 laptops
 digital cameras
 personal computers

B) CONSUMER APPLIANCES consists of goods like

 air conditioner
 electric fans
 microwave oven
 cleaning equipment
 refrigerators

Advantage India
GROWING DEMAND
 Demand growth is likely to accelerate with rising disposable incomes and easy access
to credit .
 Demand of refrigerators and consumer electronics goods to witness higher demand in
rural markets .
 Increasing in electrification of rural areas and wide usability of online sales would aid
growth in demand .
 The share of consumer goods consumption to double by 2030

Increasing investments
 Sector has attracted significant investments over the years .
 The s&p BSEconsumer durables index has growth 16%between2010-18
 Governments plans to invest significantly in rural electrification

Policy support
 100percent fdi allowed in the electronics hardware manufacturing sector under the
automatic route.Approval of 51 %in multi brand would further fuel the grwoth in this
sector
 National policy on electronics aiming (npe)aiming to attract the investment of US
$100BILLON by 2020
 Draft national policy targets production of one billion mobile handsets by 2025.
 To boost foreign direct investment (FDI) government may formulate a separate policy
for electronics.
  RECENT TRENDS IN CONDUMER DURABLE
ITEMS.
EXPANSION INTO NEW SEGMENTS

 IN November 2019 nokia enterd with patership with flipkart to enter consumer
durables market in India and plan to launch smart tv .
 In April 2019 TCL electronics announced its entry into home appliances market in
india.
 Xiaomi will enter the whitw goods segments in India in 2019,while transsion holdings
will launch its entire range of consumer durables in the country during the year.

GROWING LUXARY MARKETS

 Luxury brands like Porsche, jimmy choo are increasing their store presence.
 Luxury brands are launching their own websites to carter to Indian luxury brand
market.
 The segment of affordable luxury brands has captured the young Indian buyer
attention and is said to be growing at 40%per annum, according to Euro monitor

INCREASED AFFORDIBILITY OF PRODUCTS

 Consumer durable loan in India has increased by 70% in December 2019.

 With the initiative of “MAKE IN INDIA” campaign,many domestic and Chinese
manufactures are investing in india to setup their manufacturing plants which would
produce more affordable products

CONTRACT MANUFACTURING

 Leading consumers durables companies have started outsourcing manufacturing to

local contact manufacturers like Dixon ,Amber and Jabil .Amber contract ACs for
Voltas ,Hitachi,Daikin,godrej and others while Dixon contracts manufactures washing
appliances ,phones and other products for various brands
 STRATEGIES ADOPTED
POWERFUL COMPETITIVE STRATEGY
 TO reduce the price of their products ,vijay sales followed a totally different approach
.rather than using traditional advertising it has used inexpensive social media
campaign
Which help the company growth.
 In 2019 vijay sales acquaried a chain of consumer durable retail store in Telangana
and Andra pradesh under the name of TMC (TIRUMALA MUSIC CENTER )

SALES STATEGIES

 The festive sales theme has helped vijay sales to earn around 3500crore in the year in
2018and has expected to generate 5000crore during FY2020

OCCASION BASED MARKETING

 INDIA is the land of occasions and festivals ,therefore customers great deals .
 For instance the prices of products during Diwali ,new year etc godown and
customers are offerd with great deals such strategies are adoped so as to enhance
revenus plus to maintain amoung the buyers.

FOCUSON ENERGY EFFICENCY

 Vijay sales also plan to increase the use of environment friendly components and
reduced e waste by promoting product recycling
 India has made it mandotary for manufacturing compnies to control emissions from
climate damaging refrigerants .
 In august 2019 vijay sales launched VISE india’s first 5star invertor ac
 RECENT INVESTMENT BY KEY PLAYERS
 Intex Technologies will invest around Rs 60 crore (US$ 9.27 million) in 2018 in
technology software and Internet of Things (IoT) start-ups in India inorder to create
an ecosystem for its consumer appliances and mobile devices.
 Bosch Home Appliances to invest US$ 111.96 million to expand in India.
 Micromax plans to invest US$ 89.25 million by 2020 for transforming itself into a
consumer electronics company.
 British technology company Dyson will invest around Rs 1,300 crore (US$ 200
million) in the Indian consumer durables sector by 2023.
 In June 2018, Bajaj Electricals acquired Nirlep, a kitchenware manufacturing
company for Rs 42.50 crore (US$ 6.34 million).
 In July 2018, Samsung announced an investment of Rs 5,000 crore (US$ 745.82
million) for expansion of manufacturing capacity to 120 million from 68 million
devices at its Noida plant in India.
 In February 2019, Haier announced an investment of Rs 3,000 crore (US$ 415.80
million) as it aims a two-fold increase in its revenue by 2020.
 Oppo and Vivo, mobile phone makers, have decided to make the key components in
India in the next one year. Samsung will also start manufacturing
 mobile phone components from April 2020 in its Noida facility, which is their largest
mobile phone manufacturing plant in the world.
 As of April 2019, Xiaomi is making huge investments to expand into offline presence
and expects the offline stores to generate half of the handset salesin India by the end
of 2019.
 In December 2019, Kent RO Systems Ltd announced an investment of Rs 150
crore (US$ 21.46 million) to set up a new manufacturing unit over nextthree
years.
 Vivo to invest Rs 7,500 crore (US$ 1.07 billion) to expand its production
capacity in India.
 In September 2019, Hero Electronix announced investment of Rs 150-200 crore
(US$ 22- 29 million) to enter into consumer space with Qubo, a techbrand.
  In October 2019, Apple Inc. entered in agreement with Maker Maxity mall, co-
owned by Reliance Industries to open its first company-owned iconic

KEY PLAYERS IN THE CONSUMER DURABLES :

BLUE STAR : Blue Star has wide range of product category such as AC’S, Refrigerators
including Cold storage and cooling chambers.
DAIKIN : Product category ranging from AC’s and Cooling Equipment.
GODREJ : Wide range of products such as AC’s, refrigerators, washing machines, microwave
ovens, DVD players, digital-imaging products and audio-visual products.
HITACHI : Refrigerators and AC’s.
LG : Products such as TV’s, AC’s, Refrigerators, Washing Machine, Microwave, Vacuum
cleaners etc.
ONIDA : LCD’s, washing machines, DVD players, AC’s, microwave ovens, mobile phones,
projectors and display products etc.
PHILIPS : Wide range of products in different categories such as TV’s, Home theatres, DVD’s,
Audio Products, personal care products, Household products, Computers and phones.

SAMSUNG : , AC’s, Refrigerators, Washing Machine, Microwave, Computers and Laptops,

personal care products, Household products, Mobiles etc.

SONY : Home theatres, DVD’s, Audio Products, Computers and phones. Also Video Gaming
products and equipments as well as camcorders.

VIDEOCON : Products such as Power backup, AC’s, Refrigerators, Home theatres, DVD’s,
Audio Products.

PORTERS FIVE FORCES ANALYSIS :

Competitive Rivalry :

1)Continuous innovation and R&D prowess leads to intense rivalry.

2)Low switching cost and Homogeneity in product leads to competitive rivalry.

Threat Of New Entrants :

1)Highly Capital Intensive environment.

2)Major brands have already developed brand equity.

3)Brand loyalty also plays a vital role.

Substitute Products :

1)There are various options available in the market and thus buyers have huge propensity to
substitute.

2)1Technology advancements in recent times.

Bargaining power of Suppliers :

1)By changing the input, firms cannot drastically differentiate on price.

2)Product differentiation is very low.

Bargaining power of customers :

1)Buyer’s switching cost is very less.

2)Use of internet to get all the information enables customers to get insights and knowledge
of the product.