A consumer is a person or group of people that are the final users of products and or services

generated within a social system. A consumer may be a person or group, such as a household.
The concept of a consumer may vary significantly by context but here in this section we will
discuss both durable and non-durable goods.

Consumer Durables:

Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful
for three or more years of use, and hence durable goods are typically characterized by long
periods between successive purchases. These durable goods are referred to as Consumer
Durables and examples of consumer durable goods include cars, household goods (home
appliances, consumer electronics, furniture, etc.), sports equipment, and toys. As the second
purchase for durable goods lags time difference, generally they are sold on a higher margin.

Non-Durable or Fast-Moving Consumer Goods (FMCG):

FMCG or consumer packaged goods (CPG), are products that are sold quickly and at relatively
low cost, examples include non-durable goods such as soft drinks, toiletries, and grocery items.
They generally sell in large quantities, so the cumulative profit on such products can be
substantial and these industries often operate on thin margins.

The term FMCG refers to those retail goods that are generally replaced or fully used up over a
short period of days, weeks, or months, and within one year. This contrasts with durable goods or
major appliances such as kitchen appliances, which are generally replaced over a period of
several years.
 Consumer Durable Goods
Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful
for three or more years of use, and hence durable goods are typically characterized by long
periods between successive purchases. These durable goods are referred to as Consumer
Durables and examples of consumer durable goods include cars, household goods (home
appliances, consumer electronics, furniture, etc.), sports equipment, and toys. As the second
purchase for durable goods lags time difference, generally they are sold on a higher margin.

The Consumer Durables industry consists of durable goods and appliances for domestic use such
as televisions, refrigerators, air conditioners and washing machines. Instruments such as
cellphones and kitchen appliances like microwave ovens are also included in this category. The
sector has been witnessing significant growth in recent years, helped by several drivers such as
the emerging retail boom, real estate and housing demand, greater disposable income and an
overall increase in the level of affluence of a significant section of the population. The industry is
represented by major international and local players such as BPL, Videocon, Voltas, Blue Star,
MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer
Electronics and Consumer Appliances. Consumer Appliances can be further categorized into
Brown Goods and White Goods. The key product lines under each segment are as follows.

White Goods

 Kitchen Appliances
 Refrigerators
 Washing Machines
 Air-conditioners
 Speakers and Audio Equipment

Kitchen Appliances / Brown Goods Consumer Electronics

 Mixers
 Grinders
 Microwave Ovens
 Iron
 Electric Fans
 Cooking Range
 Chimneys

Consumer Electronics

 Mobile Phones
 Televisions
 MP3 Players
 DVD Players
 VCD Players
 iPad

Performance:

In the past 10 years, the global market has witnessed a surge in demand as economies such as
Brazil, Mexico, India and China have opened up and begun rapid development. The consumer
durables industry has always exhibited impressive growth despite strong competition and
constant price cutting. There exists a very strong correlation between demand for durables and
income. Leading players in this sector include Sony Corporation, Toshiba Corporation,
Whirlpool Corporation and Panasonic Corporation.

Developing countries such as India and China have largely been shielded from the backlash of
the recession, as consumers continued to buy basic appliances. In fact, China has been ranked the
second-biggest market in the world for consumer electronics. Despite the recession, their strong
domestic economy and growing high-income population have buoyed demand leading to
aggressive market growth.

Challenges in Consumer Durable Industry:

The challenges faced by Consumer Durable Industry are listed below:

 Local industry dynamics

 Supply-related issues pertaining to distribution and infrastructure
 Demand issues due to competition from imported goods
 Lack of well-developed distribution networks
 Penetrating fastest growing rural areas
 Electricity availability
  Road infrastructure
 Systematic production
 Labor availability
 Increasing choice from both domestically produced and imported goods
 Superior technology
 Steady flow of capital
 Well-acknowledged brands
 Extensive distribution network
 Insight in local market conditions