CONSUMER ELECTRONICS IN INDIA - ANALYSIS

Country Report | Sep 2019

EXECUTIVE SUMMARY Market Sizes

Consumer electronics continues to grow, with a rapidly changing Sales of Consumer Electronics
landscape Retail Volume - '000 units - 2005-2024
The Indian consumer electronics market recorded continued growth in 2019, owing to
increase sales of portable consumer electronics and in-home consumer electronics.
351,544 Forecast
While consumers remain price conscious, they have continued to move towards 400,000
smarter and more integrated products, which can be multifunctional. Growth in
smartphones and portable wireless speakers has negatively impacted sales of products
in imaging devices, like digital cameras and camcorders, and in-car entertainment
products, like in-car navigation systems and in-dash media players. Manufacturers in all 300,000
categories have sought to deliver advanced offerings which provide the benefits of
better quality and a more immersive experience. The entry of new players with
competitive products at economical prices in various categories is causing well- 200,000
established players to rethink and revise their marketing strategies in order to retain
market share.

Consumers look for enhanced experiences with technological 100,000

advancements in consumer electronics
With evolving technology and greater exposure, more consumers are looking for an
enhanced experience in the products they buy and how they buy them. Consumers are 0
2005 2019 2024
becoming more tech savvy and are more aware of global developments. They are
showing interest in devices which can offer greater connectivity, compatibility with
other devices and ease of use, along with innovative features and superior
performance. Consumers are looking for a more immersive experience in their Sales Performance of Consumer Electronics
entertainment devices like laptops, televisions and smartphones. Separate products % Y-O-Y Retail Volume Growth 2005-2024
with separate functions have been losing their appeal, with consumers favouring
products with multiple functions. Good quality at an affordable price is a requirement
for the great majority of Indian consumers. Manufacturers are aware of this aspect of
6.3% Forecast
50%
consumer demand and have been trying to leverage it. More manufacturers are
entering the consumer electronics market in India with the promise of selling the latest
products which suit the needs of value-seeking Indian buyers. Wearable electronics, 40%
wireless speakers and smartphones are the categories which have benefited most from
changing consumer preferences.
30%

Samsung India Electronics Pvt Ltd leads in the face of intense

competition 20%

Samsung India Electronics Pvt Ltd has a presence in multiple categories in the consumer 10%
electronics market. It benefits from strong brand awareness among consumers, a vast
retail network and active marketing. Samsung has been actively promoting its products
in the television, smartphone and smart wearables categories. However, other 0%
international players are posing a serious threat to Samsung by offering products which
have competitive features at lower prices. For example, Xiaomi Technology India Pvt -10%
Ltd overtook Samsung in sales of smartphones in 2018. Similarly, Xiaomi, BPL, Vu and 2005 2019 2024
TCL are impacting the sales of Samsung, LG and Sony in the growing televisions
category. In order to regain market share, Samsung and LG are thinking of reducing the
prices of their products. Samsung has also been trying to maintain its position in other
categories, like tablets, where it plans to launch a sub-INR10,000 4G LTE tablet. Sales of Consumer Electronics by Category
Retail Volume - '000 units - 2019 Growth Performance
Electronics and appliance specialist retailers dominate but internet
Computers and Peripherals
retailing continues to grow 9,887.9

Offline stores remain the most important channel of distribution in consumer In-Car Entertainment
2,281.4
electronics, as many consumers prefer to test products before purchasing. However,
with consumers seeking better deals and a better shopping experience, the specialist In-Home Consumer Electronics
22,451.1
retailers are trying to up their game. Some manufacturers have been investing in
exclusive stores which are different from traditional retail stores. Samsung Opera Portable Consumer Electronics
316,923.7
House in Bangalore is one example, where the brand has created an experience centre
which lets buyers try out the products in a highly immersive environment. Xiaomi is -20% 75% 170%
also aiming to open stores with a vending machine format in 2019. As internet retailing CONSUMER ELECTRONICS 351,544.1 CURRENT % CAGR % CAGR
grows, more manufacturers are realising the importance of an omnichannel approach YEAR % 2014-2019 2019-2024
for success. Internet retailing is primarily driven by Amazon and Flipkart in India. As GROWTH
internet penetration grows and more consumers use smartphones, the ease offered by
shopping from anywhere with just a tap on a screen will contribute to internet retailing
continuing to grow.

© Euromonitor Interna onal 2020 Page 1 of 3

Slowdown expected in the forecast period, owing to market maturity Competitive Landscape
With continued changes in the technological landscape, a slowdown in growth is
expected in the consumer electronics industry during the forecast period. Computers Company Shares of Consumer Electronics
and peripherals, in-car entertainment, home audio and cinema, and imaging devices % Share (NBO) - Retail Volume - 2019
will be most impacted. With growth in smartphone and internet penetration, the
Samsung India Electronic... 15.9%
cannibalisation of these categories will continue, and older and mature products, like
hi-fi systems, DVD players, portable media players and digital camcorders, will decline Xiaomi Technology India ... 15.5%
further. However, new and emerging categories, like wireless speakers and activity Reliance Jio infocomm Lt... 12.0%
wearables, are expected to perform well and deliver benefits which meet changing
consumer needs, preferences and lifestyles. Rural demand for entertainment and Vivo Mobile India Pvt Lt... 5.0%
fitness products will also contribute to the growth of consumer electronics in the Lava International Ltd 4.8%
forecast period.
Intex Technologies (Indi... 3.8%

SOURCES Lenovo India Pvt Ltd 3.6%

Oppo Mobile India Pvt Lt... 3.1%
Sources used during research include the following:
Transsion India Pvt Ltd 3.0%
Summary 1 Research Sources Micromax Informatics Ltd 2.6%

Official Sources Directorate General of Foreign Trade Karbonn Mobile India Pvt... 2.2%
Minis try of Sta tis tics & Progra mme Implementa tion Apple India Pte Ltd 1.8%
Trade Associations As s ocia tion of Unified Telecom Service Providers of India (AUSPI) Panasonic India Pvt Ltd 1.7%
COAI Sony India Pvt Ltd 1.4%
Cons umer Electronics & Applia nces Ma nufa cturers As s ocia tion (CEAMA)
LG Electronics India Pvt... 1.2%
Cons umer Electronics & TV Ma nufa cturers As s ocia tion (CETMA)
Asus Technology Pvt Ltd 1.0%
Electronic Indus tries As s ocia tion of India (ELCINA)
Microsoft Corp (India) P... 0.8%
India n Cellula r Authority
Ma nufa cturers ' As s ocia tion for Informa tion Technology Celkon Impex Pvt Ltd 0.7%

Trade Press Auto Times Maxx Moblink Pvt Ltd 0.6%

AV Ma x Others 19.3%
BGR
BGRMedia
Bloomberg
Bus ines s Line Brand Shares of Consumer Electronics
Bus ines s s ta nda rd % Share (LBN) - Retail Volume - 2019
Bus ines s Toda y
Samsung 15.9%
Cha nnel Times
Xiaomi 15.5%
CIOL
JioPhone 12.0%
Computerworld
Vivo 5.0%
Cyber Media
Da ta Ques t Lava 4.6%
Digit Intex 3.8%
E Prodz Lenovo 3.6%
Economic Times Oppo 3.1%
ET Reta il
Itel 3.0%
ET Telecom
Micromax 2.6%
Expres s Computerline
Karbonn 2.2%
ExtremeTech
Fina ncia l Expres s Panasonic 1.7%

Firs tPos t Tech iPhone 1.7%

Forbes India Sony 1.4%
Fortune India LG 1.2%
Ga dgets NDTV
Asus 1.0%
Ga dgets now
Nokia 0.8%
Hindus ta n Times
Celkon 0.7%
IBNLive
India nTelevis ion Maxx 0.6%

Informa tionWeek Others 19.7%

Ja s ubha i Publica tions
Live Mint Increasing share Decreasing share No change
Media Na ma
Millennium Pos t
moneylife
Mous eworld Now
My Mobile
mys ma rtprice
NDTV (Ga dgets )
PCMa g

© Euromonitor Interna onal 2020 Page 2 of 3

 Official Sources Directorate General of Foreign Trade
Qua rtz India
Rediff.com
Tech Tree
Tech2
Techcircle.in
The DQWeek
The Ecoomic Times
The Gua rdia n
The Hindu
The India n Expres s
The India n Wire
The Mobile India n
The News Minute
The Regis ter
The Times of India
The Wa l Street Journa l
TOI Technology
TV Veopa r Journa l
Voice & Da ta
ZDNet India

Source: Euromonitor Interna tiona l

© Euromonitor Interna onal 2020 Page 3 of 3