INTRODUCTION • Indian consumer durables market is

broadly segregated into urban and rural

markets, and is attracting marketers from
across the world.
• The sector comprises of a huge middle
class, relatively large affluent class and
lower economical class.
• Global corporations view India as one of
the key markets from where future
growth is likely to emerge. The growth in
India’s consumer market would be
primarily driven by a favourable
population composition and increasing
disposable incomes.
• Per capita GDP of India is expected to
reach US$ 3,273.85 in 2023 from US$
1,983 in 2012.
• The maximum consumer spending is
likely to occur in food, housing, consumer
durables, and transport and
communication sectors.
 The growing purchasing power and rising
CAGR 17% influence of the social media have enabled
Indian consumers to splurge on good things.
Import of electronic goods reached US$ 53
2019 25
billion in FY18 to US$55.6 billion in FY19.

The industry had a total market size of Rs

76,400 crore (US$ 10.93 billion) in FY19 in
2018 21
which Rs 32,200 crore (US$ 4.61 billion) was
contributed from domestic manufacturing.

As of FY19, air conditioner market size in India

2017 18
was 65 lakh units, refrigerator with 145 lakhs
and washing machine units at 70 lakhs.

2016 16
The S&P BSE Consumer Durables Index is up 6.8
per cent in Jan 2020 and gained 32.1 per cent in
0 5 10 15 20 25 30 one last year.

MARKET SIZE
 BRANDS AND THEIR PRODUCTS

BRAND DC FF SA FA FLT MWO AC RO

LG
SAMSUNG
WHIRLPOOL
HAIER
BOSCH
VOLTAS
HITACHI
GODREJ
PROJECTION FOR CONSUMER
DURABLE INDUSTRY
Product-specific demand drivers will lead
to strong growth across all consumer
durables and electronics product
segments.
•Feature phone to smart phone;
Household penetration of consumer durables and electronics increased penetration of Internet
payments
100
92 95 •Washing machine Shift from
90 87 88 semiautomatic to automatic; penetration
in tier 2, 3 towns
80
70 •Televisions Shift to larger screen size;
70 Internet penetration driving demand for
60 54 smart TVs; increase in demand for flat
50
panel TVs
40 •ACs Shift to split ACs; new energy
efficient inverter technology
30
•Refrigerators Penetration in tier 2, 3
20 towns due to electrification.
10
0
2018 2019 2020 2021 2022 2023

India China Global Average

CONT….
The following are the trends that we expect to see for the
next 5 years in the durable industry as a whole:
1. Expansion into new segments: Many new players are
entering the consumer durable sector as the future looks
promising.
2. Increased affordability and rising incomes: Advancement
in technology and higher competition are driving price
reductions across various consumer durable product
segments.
3. Focus on energy-efficient and environment-friendly
products: Companies also plan to increase the use of
environment-friendly components and reduce e-waste by
promoting product recycling. India has made it mandatory
for manufacturing companies to control emissions from
climate-damaging refrigerants (e.g. in the AC segment, many
companies have started focusing on only inverter ACs).
 • Continuous innovation leads to intense rivalry
Competitive • Homogeneity in product and low switching
Rivalry cost

Threat of New • Highly capital intensive

Entrants • Major players have developed brand equity

PORTERS
FIVE Substitute
Products
• Technology Advancements
• Buyers have huge propensity to substitute

FORCES Bargaining • Product Differentiation is very low

Power Of • By changing the input firms cannot drastically
differentiate on price
Suppliers
Bargaining • Use of internet to get all the information
Power Of enables customers to be powerful
• Buyers switching cost is very less
Customers
 Strengths Weaknesses
1. Disposable income is increasing 1. Demand is seasonal and is high during
significantly in Indian consumer classes. festive season.
2. Presence of established distribution 2. Corporate taxation is very high.
networks in both urban and rural areas
3. Labor laws are also treated as a weak factor.
3. Make in India move to strengthen the
industry.
SWOT OF CONSUMER
DURABLE INDUSTRY

Opportunities
1.The rising purchasing power of people.
2.The increasing popularity of easily available
consumer loans.
3. Unexploited rural market.
4. 100% FDI in Consumer durables.
Threats
1. Increase in custom duty
2. Constant changes in government policies for
environmental issues.
3. Infrastructure issues.
IMPACT OF COVID-19 ON INDIAN ECONOMY
• Demand Side Impact - Consumption is also getting impacted due to job losses and decline in income levels of people particularly the
daily wage earners due to slowing activity in several sectors including retail, construction, entertainment, etc. With widespread fear and
panic now increasing among people, overall confidence level of consumers has dropped significantly, leading to postponement of their
purchasing decisions.

• Impact on Financial Market - Greater uncertainty about the future course and repercussion of Covid-19 has also made the financial
market extremely volatile, leading to huge crashes and wealth erosion, which in turn is impacting consumption levels. One of the major
slides in the domestic equity markets was seen on March 12, when following the trend of the global equity markets, both the BSE
Sensex and NSE Nifty crashed by more than 8% in a single day. The BSE Sensex dropped over 2,919 points – its biggest one-day fall in
absolute terms while the NSE Nifty dropped by 868 points. An estimated Rs 10 lakh crore of market cap was reportedly wiped off due to
this single day fall.

• Supply Side Impact - On the supply side, shutdown of factories and the resulting delay in supply of goods from China has affected many
Indian manufacturing sectors which source their intermediate and final product requirements from China. This is hampering business
sentiment and affecting investment and production schedules of companies. Besides having a negative impact on imports of important
raw materials, the slowdown in manufacturing activity in China and other markets of Asia, Europe and the US is impacting India’s
exports to these countries as well.

• Impact on International Trade - China has been a major market for many Indian products like sea food, petrochemicals, gems and
jewelry etc. The outbreak of coronavirus has adversely impacted exports of these items to China. For instance, the fisheries sector is
anticipated to incur a loss of more than Rs 1,300 crore due to fall in exports. Similarly, India exports 36% of its diamonds to China. The
cancellation of four major trade events between February and April is likely to cause an estimated loss of Rs 8,000-10,000 crore in terms
of business opportunity for Jaipur alone.1 India also exports 34% of its petrochemicals to China. Due to exports restrictions to China,
petrochemical products are expected to see a price reduction.
 IMPACT OF CONSUMER
DURABLES & ELECTRONICS
India imports 45% completely built units of consumer durables from China.

In addition to finished products, India also import nearly 70% of the components for television, and other
consumer durable products such as air conditioners, refrigerators, and washing machines.

Due to supply disruption, sales of these items are likely to be hampered.

Also, Chinese suppliers have reportedly increase the prices of some components by more than 2%, and
prices of TV panels by more than 15%.12 Hence, it is anticipated that prices of these consumer durable
items will see a price increase in the range of 3-5%.