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Analysis of consumer durable industry
- 2. 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 cell phones and kitchen appliances like microwave ovens are also included in this category. The government of India has increased liberalisation which has favoured foreign direct investment. Also policies such as National Electronics mission digitization of television and setting up of Electronic Hardware Technology Parks is expected to boost the growth of this sector.
- 3. India’s consumer durables industry is valued at $9.7 billion as of 2015. This sector is expected to grow to $20.6 billion by 2020 and become the fifth largest in the world by 2025.
- 4. Consumer Electronics(Brown Goods) Television Audio and Video Appliances Laptops Electronic Accessories Camcorders Consumer Appliances (White Goods) Airconditioners Refridgerators Washing Machines Cleaning Equipments Microwave Ovens
- 5. Pre-Liberalization Liberalization and Growth Consolidation 1980s-early 1990 Mid and late 1990s Early 2000 Late 2000s
- 6. CONSUMER DURABLE INDUSTRY INCOME GROWTH & AVAILABILTY OF FINANCING GROWTH OF ORGANI- ZED RETAIL INCREASED COMPETITION DUE TO ENTRY OF LARGE PLAYERS FALLING PRICES & INCREASED AFFORDIBIL TY
- 12. DEMAND FOR INNOVATIVE PRODUCT GROWING WORKING POPULATION EASY FINANCING GROWTH IN ORGANIZED RETAIL SECTOR RISE IN DISPOSABLE INCOME
- 16. • ENHANCED CONSUMER AWARENESS • EXISTANCE OF GLOBAL COMPANIES WITH UPGRADED TECHNOLOGY • PRODUCT INNOVATION
- 19. Threat from new entrant- LOW The industry is highly capital intensive as new manufacturers will require to setup their plants. Major players have developed brand equity so it is difficult to position the new brand in the market. Brand loyalty is moderate so the threat of new entrants is low. Make in India policy
- 20. Bargaining power of customer- HIGH Use of Internet to get all the information enables customers to be powerful. Within the consumer durables industry where switching cost are rather negligible and competing on price alone is no longer a key to success brand recognition and innovation helps to attract first-time customers. Online shopping has increased the bargaining power of customers.
- 21. Threat from the substitute product- HIGH Technology advancement Buyers have huge propensity to substitute.
- 22. Bargaining power of supplier- LOW Product differentiation is very low in this sector. By changing the input, firms cannot drastically differentiate on price.
- 23. Competitive rivalry within the industry- HIGH Continuous innovation leads to intense rivalry Homogeneity in product and low switching cost
- 26. Strategic group mapping is a technique for looking at your position in your sector, field or market. It is tool for competition analysis Strategic group map help to define the scope of firm`s competitors. It involves following steps: a) Identify Competitor Industry b) Identify Your Two Key Variables c) Identify The Third Variable d) Plot the strategic group
- 29. The consumer durables industry in India is set for sustained growth over the long term, fuelled by favourable consumer demographics, overall growth in services and industrial sectors and infrastructure development in sub-urban and rural areas The product and approach to market need to be customised to suit the unique needs of the Indian market.