5 Summary:-

The consumer durables sector includes consumer appliances and consumer electronics. The
consumer appliances sector includes air conditioners, refrigerators, washing machines, sewing
machines, electric fans, cleaning equipment, microwave ovens and other domestic appliances.
Consumer electronics include televisions, audio and video systems, electronic accessories, CD
and DVD players, digital cameras and camcorders.

By 2025, it is expected that India is will become the fifth largest consumer durables market
globally. The consumer durables industry is projected to double at 14.8% CAGR to reach
approximately USD 12.5 billion in FY15 from USD 6.3 billion in FY10.

At present, more than 77% of households in urban India have a television, 33% own a
refrigerator, 17% have an air cooler, and 13% own a washing machine. Air conditioner
penetration in India compares unfavorably with other developing markets, especially Asian
countries, along with the other consumer durables categories within the country.

The improving living standards have made home washing machines an essential consumer good
in the Indian market. The changing environmental dynamics, urbanization and rising income
levels are driving the growth of this segment that was once inhibited by the high price point.The
Indian refrigerator market was worth INR 41 billion in 2009 and is projected to reach INR 223
billion by 2020. Although the market has been growing, it still remains underpenetrated. Market
penetration of refrigerators in India is 21% as compared with the global average of 85%.

The Indian television market is shifting from the traditional cathode ray tube (CRT) technology
to LED, LCD and Plasma televisions. Some leading players have officially stopped the
production of CRT televisions and are now concentrating on LED TV's. While in 2012 CRT
sales stood at 7 million units and flat panels stood at 5 million units, in 2014 CRT sales were
only 2.5 million units while flat panel sales stood at close to 9 million units.It is expected the TV
industry revenue will reach INR 130,500 crore by 2020.TVs form the next largest imports in the
consumer durables sector behind air conditioners in India.

Why should the report be purchased?

 The report 'A Study of the Indian Consumer Durables Sector' highlights the key dynamics
of India's consumer durables sector. The potential of the sector has been investigated
along with key challenges.The current market scenario and future prospects of the sector
have been studied.

 The air conditioner, washing machine, television and refrigerator sectors have been
studied in detail. Key players operating in the consumer durables sector including Voltas
Ltd., Blue Star Ltd., Hitachi Ltd., LG Electronics India Pvt. Ltd., AB Electrolux,
Panasonic Corp., Samsung, Carrier Corp., Whirlpool, IFB, Videocon have been profiled.
The report contains latest verbatim of industry experts.
 Research methodology and delivery time

 Smart Research Insights has conducted in depth secondary research to arrive at key
insights. Data collected from key public industry sources and publications has been
scanned and analyzed impartially to present a clear picture of the industry.

 All recent developments which impact the sector dynamics have been captured and used
to support the research hypothesis.

 The report is available as single-site single-user license and the delivery time for the
electronic version of the report is 3 business days. The dispatch time for hard copies is 4
business days, as each hard copy is custom printed for the client.
Chapter 1: Industrial Scenario
 History / Evolution of the sector:-
Consumer durables refer to those
consumer goods that do not quickly wear out and yields utility over a long period of time. Some
of the popular and common examples of these kinds of items are electronic goods, kitchen
appliances, home furnishings and leisure equipment etc. Consumer durables can be broadly
categorized into the following 3 heads:

White Goods: White goods mainly include air conditioners, refrigerators, washing machines,
audio equipment and speakers.

Brown Goods: This kind of consumer durables mostly include kitchen appliances like chimneys,
electric fans, grinders, iron, microwave ovens, mixers and varied other cooking ranges.

Consumer Electronics: Some of the mostly used consumer electronic goods are DVD players,
MP3 players, mobile telephones, telephones, VCD players etc

Overall working of the sector:-

Overall working sector of
consumer durable Industry can be divided into 4 Parts. They are as follows:-

 Producer:-
The one who produces or manufactures the product is called Producer.
The producer produce the product and then it sells it to their
dealership distributors.

 Distributor:-
The producer when gives their products to distributors, they sell it to
 wholeseller. So the third link of the channel is wholeseller.
 Wholeseller:-

Third link in this chain is Wholeseller. Wholeseller purchases

products from distributor and sells it to retailer.

 Retailer:- When retailer purchases the products from wholeseller he

then sells it to customer. In this way, the chain of consumer durable
Industry works.

1.3. Challenges faced by that sector in India:-

Challenges faced by the

Consumer Durable sector in India are as follows:-
 Changes in Delivery Model
 Impact of Technology
 Technological Innovation
 Changes in Consumer Expectations
 Availability of Electricity
 Changes in Government Policy
 Demand Issues due to Distribution
  Extensive Distribution Network

1.4. SWOC Analysis:-

The full form of SWOC full is Strength,
Weakness, Opportunities and
Challenges analysis. A SWOC analysis is a strategic planning tool that can be used during the
curriculum assessment and review process to make informed decisions based upon collective
input from multiple stakeholders. Each single term is explained below:-

 Strength:-

 Quality manpower.
 Availability of raw material.
 Availability of labour at low wage.
 Developed transport & shipping system.

 Weakness:-

 High rate of taxes

 High cost of manufacturing.
 High cost of capital
 Low labour productivity
 High cost of basic inputs and services
 Quality issues and less expenditure on R&D.
 Inability to adopt technological advancement.

 Opportunity:-

 Mergers and acquisition

 Unexplored rural market and other sectors
 Export penetration and increase in demand
 Infrastructure development in India & abroad.

 Challenges:-
  Huge Capital Requirement
 Slow industry growth
 Technological change
 Price sensitivity and demand volatility
 China factor -dumping of low-price steel.

1.5. Major Players in the sector:-

 BPL
 Videocon
 Voltas
 Blue Star
 MIRC Electronics
 Titan
 Whirlpool
 Bajaj Electricals
 Amber Enterprises
 Honeywell Automation India Limited
1.6. GDP Contribution by that Sector:-

The consumer durable industry consists of durable goods and appliances for domestic use
such as televisions, refrigerators, air conditioners and washing machines. The consumer
durables market is estimated to be US$ 15 billion as on May 2017 and is expected to
reach US$ 20.6 billion by 2020. Urban markets account for the major share 4 (65 per
cent) of total revenues in the consumer durables sector in India. Consumer electronics
exports from India reached US$ 186.7 million during April-September 2017. Also
demand for durables like refrigerators as well as consumer electronic goods are likely to
witness growing demand in the coming years in the rural markets as the government
plans to invest significantly in rural electrification. Winning in growth markets'. Fuelled
by rising incomes and growing affordability, the consumer durables market is expected to
expand at a compound annual growth rate (CAGR) of 14.8 per cent to US$ 12.5 billion
in FY 2015 from US$ 7.3 billion in FY 2012. Urban markets account for the major share
(65 per cent) of total revenues in the Indian consumer durables sector. In rural markets,
durables, such as refrigerators, and consumer electronic goods are likely to witness
growing demand in the coming years. From US$ 2.1 billion in FY 2010, the rural market
is expected to grow at a CAGR of 25 per cent to touch US$ 6.4 billion in FY 2015.

The consumer durable Industry size is expanding day by day which can be seen by the
given below diagram.
Global Perspective:-
Global Perspective of Consumer Durable Sector is to provide
best quality of goods in cheapest price and to satisfy their customer.