The document discusses the Indian consumer durables industry, including key segments, market size and growth trends. It notes that the industry has seen significant growth in recent years due to rising incomes, increased availability of financing, falling prices making goods more affordable, and the growing share of organized retail. The largest segments by volume are colour televisions, refrigerators, and air conditioners, together making up over 60% of sales. Mobile phones are also emerging as a major new segment of the industry.
This document discusses Videocon Industries Ltd., an Indian consumer durable company. It provides details on the consumer durable industry in India and Videocon's products, sales organization structure, and approach to sales forecasting. The key points are:
1) Videocon operates in a highly competitive industry that is growing rapidly due to increasing disposable incomes in India.
2) Videocon's main products include washing machines, color TVs, air conditioners, and refrigerators. It focuses on R&D and technology partnerships.
3) Videocon uses a bottom-up sales forecasting approach considering various economic factors to estimate sales and set targets.
The document discusses the Indian consumer durables industry, including key segments, market size and growth trends. It notes that the industry has seen significant growth in recent years due to rising incomes, increased availability of financing, falling prices making goods more affordable, and the growing share of organized retail. The largest segments by volume are colour televisions, refrigerators, and air conditioners, together making up over 60% of sales. Mobile phones are also emerging as a major new segment of the industry.
The electronics industry in India is estimated to be around 40 billion USD, less than 1% of the global market. It is divided into consumer durables and hi-tech/consumer electronics. The consumer durables industry has grown at a double digit rate in recent years and is projected to grow 65% over the next 5 years. Growth is driven by increasing disposable income and demand from rural India. The logistics market serving the electronics industry is estimated to be between 3600-6000 crore INR currently and is expected to grow to 6000-10000 crore INR by 2014, providing opportunities for logistics providers.
CONSUMER DURABLE INDUSTRY IN INDIA – PRESENT TREND, CHALLENGES AND FUTURE PRO...IAEME Publication
Consumer durable is one of the fastest growing industry segments in India. This industry has demand from both urb an and rural markets. Urban markets account for the major share
i.e., 65% 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. India is likely to emerge as the world’s largest middle class consumer market with an aggregated spend of nearly US$13 trillion by 2030 as per a report by Deloilte titted, “India matters, winning in growth markets”. As against the Compound Annual Growth Rate (CAGR) of 13% in FY 13-FY 14, it is expected to expand at CAGR of 14.8% in FY 2015. India’s consumer durables industry accounts for more than 2/5th of end - consumer spending, and creates three indirect jobs for every direct job and contributes to more than 5.5% of the index of industrial production according to a Federation of Indian Chambers of Commerce and Industry- Ernst & Young Report
The consumer durable industry in India is growing rapidly, expected to post a CAGR of 15% over 2010-2015. Key segments include white goods (air conditioners, refrigerators), brown goods (fans, clocks), and consumer electronics (TVs, phones). The market is estimated to expand to $12.5 billion by 2015 from $7.3 billion in 2011, driven by growth in rural and semi-urban areas. Major players include Samsung, Whirlpool, LG, Godrej, and Sony. The government supports industry growth through initiatives to develop rural infrastructure and enhance access to credit for rural consumers. While opportunities exist due to rising incomes, challenges include high input costs, competition, and reliance on imports
- India is set to become the fifth largest consumer durables market in the world by 2025. The market is estimated to reach US$ 12.5 billion in 2016 and US$ 20.6 billion by 2020.
- India has the world's third largest television industry, which is expected to grow at a CAGR of 14.7% between 2016-2021. The television market in India is expected to increase from US$ 9.23 billion in 2016 to US$ 11.78 billion by 2018.
- The electronics market in India is expected to increase to US$ 228 billion by 2020 from US$ 100 billion in FY17. Urban areas currently account for about two-thirds of total sales in
The document provides an overview of the consumer durables market in India. Some key points:
- The market size is estimated at $15 billion in 2017 and is expected to grow to $20.6 billion by 2020, registering a CAGR of 13%.
- Urban areas account for around two-thirds of total sales currently.
- Key product segments include color TVs, flat panel displays, DVDs, and direct-to-home services. The television industry in particular is growing at a CAGR of 14.7% and was worth $9.23 billion in 2016.
- India is set to become the fifth largest consumer durables market in the world by 2025. The market is estimated to reach US$12.5 billion in 2016 and US$20.6 billion by 2020.
- The electronics market in India is expected to increase to US$100 billion by 2020 from US$28 billion in FY17. India has the world's third largest television industry, which is expected to grow at a CAGR of 14.7% between FY16-21.
- Key segments of the consumer durables market include consumer electronics such as televisions, ACs, washing machines, refrigerators, and consumer appliances. Urban areas currently account for around two-thirds of
This document discusses Videocon Industries Ltd., an Indian consumer durable company. It provides details on the consumer durable industry in India and Videocon's products, sales organization structure, and approach to sales forecasting. The key points are:
1) Videocon operates in a highly competitive industry that is growing rapidly due to increasing disposable incomes in India.
2) Videocon's main products include washing machines, color TVs, air conditioners, and refrigerators. It focuses on R&D and technology partnerships.
3) Videocon uses a bottom-up sales forecasting approach considering various economic factors to estimate sales and set targets.
The document discusses the Indian consumer durables industry, including key segments, market size and growth trends. It notes that the industry has seen significant growth in recent years due to rising incomes, increased availability of financing, falling prices making goods more affordable, and the growing share of organized retail. The largest segments by volume are colour televisions, refrigerators, and air conditioners, together making up over 60% of sales. Mobile phones are also emerging as a major new segment of the industry.
The electronics industry in India is estimated to be around 40 billion USD, less than 1% of the global market. It is divided into consumer durables and hi-tech/consumer electronics. The consumer durables industry has grown at a double digit rate in recent years and is projected to grow 65% over the next 5 years. Growth is driven by increasing disposable income and demand from rural India. The logistics market serving the electronics industry is estimated to be between 3600-6000 crore INR currently and is expected to grow to 6000-10000 crore INR by 2014, providing opportunities for logistics providers.
CONSUMER DURABLE INDUSTRY IN INDIA – PRESENT TREND, CHALLENGES AND FUTURE PRO...IAEME Publication
Consumer durable is one of the fastest growing industry segments in India. This industry has demand from both urb an and rural markets. Urban markets account for the major share
i.e., 65% 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. India is likely to emerge as the world’s largest middle class consumer market with an aggregated spend of nearly US$13 trillion by 2030 as per a report by Deloilte titted, “India matters, winning in growth markets”. As against the Compound Annual Growth Rate (CAGR) of 13% in FY 13-FY 14, it is expected to expand at CAGR of 14.8% in FY 2015. India’s consumer durables industry accounts for more than 2/5th of end - consumer spending, and creates three indirect jobs for every direct job and contributes to more than 5.5% of the index of industrial production according to a Federation of Indian Chambers of Commerce and Industry- Ernst & Young Report
The consumer durable industry in India is growing rapidly, expected to post a CAGR of 15% over 2010-2015. Key segments include white goods (air conditioners, refrigerators), brown goods (fans, clocks), and consumer electronics (TVs, phones). The market is estimated to expand to $12.5 billion by 2015 from $7.3 billion in 2011, driven by growth in rural and semi-urban areas. Major players include Samsung, Whirlpool, LG, Godrej, and Sony. The government supports industry growth through initiatives to develop rural infrastructure and enhance access to credit for rural consumers. While opportunities exist due to rising incomes, challenges include high input costs, competition, and reliance on imports
- India is set to become the fifth largest consumer durables market in the world by 2025. The market is estimated to reach US$ 12.5 billion in 2016 and US$ 20.6 billion by 2020.
- India has the world's third largest television industry, which is expected to grow at a CAGR of 14.7% between 2016-2021. The television market in India is expected to increase from US$ 9.23 billion in 2016 to US$ 11.78 billion by 2018.
- The electronics market in India is expected to increase to US$ 228 billion by 2020 from US$ 100 billion in FY17. Urban areas currently account for about two-thirds of total sales in
The document provides an overview of the consumer durables market in India. Some key points:
- The market size is estimated at $15 billion in 2017 and is expected to grow to $20.6 billion by 2020, registering a CAGR of 13%.
- Urban areas account for around two-thirds of total sales currently.
- Key product segments include color TVs, flat panel displays, DVDs, and direct-to-home services. The television industry in particular is growing at a CAGR of 14.7% and was worth $9.23 billion in 2016.
- India is set to become the fifth largest consumer durables market in the world by 2025. The market is estimated to reach US$12.5 billion in 2016 and US$20.6 billion by 2020.
- The electronics market in India is expected to increase to US$100 billion by 2020 from US$28 billion in FY17. India has the world's third largest television industry, which is expected to grow at a CAGR of 14.7% between FY16-21.
- Key segments of the consumer durables market include consumer electronics such as televisions, ACs, washing machines, refrigerators, and consumer appliances. Urban areas currently account for around two-thirds of
This document provides an overview of India's consumer durable industry. It discusses the growth of India's consumer market driven by rising incomes and access to financing. It outlines the various consumer classes in India and projections that the middle class will grow significantly. It also provides details on the major players in the industry, including their market shares, and the policies and regulations supporting the industry. The key points are:
- India's consumer durable market has grown significantly with rising incomes and easy financing. The middle class is projected to increase from 50 million to over 500 million people by 2025.
- Major players like Samsung, LG, and Whirlpool dominate various product categories like refrigerators and ACs.
- Government policies
The document provides an overview of the consumer durables market in India. Some key points:
- The consumer durables market in India is expected to grow from $12.5 billion in 2016 to $20.6 billion by 2020.
- India has the world's third largest television industry and the television market is expected to grow at a CAGR of 14.7% from 2016-2021.
- Urban areas account for about two-thirds of total sales in the consumer durables sector in India.
The document provides an overview of the consumer durables market in India. Some key points:
- The consumer durables market in India is estimated to have reached $15.5 billion in 2017 and is expected to reach $46.5 billion by 2020, growing at a CAGR of 41%.
- India has the world's third largest television industry, estimated at $10.19 billion in 2017 and projected to reach $13.31 billion in 2020, growing at a CAGR of 9.8%.
- Urban areas account for around two-thirds of total sales in the sector currently.
The consumer durables market in India is growing rapidly and is expected to reach $46.5 billion by 2020, up from $21.7 billion in 2017. Urban areas account for about two-thirds of sales currently. Key product segments driving growth include televisions, refrigerators, and air conditioners. Rural electrification and rising incomes are fueling demand in both urban and rural India.
The consumer durables market in India is growing rapidly due to rising incomes and increased electrification. The market grew at a CAGR of 11% between FY12-17 to reach $21.7 billion and is expected to reach $46.5 billion by 2020, growing at a CAGR of 13%. Urban areas currently account for around two-thirds of sales but rural demand is rising as electrification increases. Key products include televisions, refrigerators, air conditioners, washing machines and fans. Major domestic and international brands operate in the market.
The consumer durables and electronics market in India has grown significantly over the past decade and is expected to continue growing rapidly. By 2020, the electronics market in India is projected to increase to $400 billion from the current $69.6 billion. Similarly, the consumer durables market is expected to reach $12.5 billion by 2015, up from $7.3 billion in FY2012. This growth has been driven by rising incomes, expanding rural markets, policy support for the industry, and investments by global and domestic companies. Major players like Samsung, LG, and Videocon are further investing in manufacturing, R&D, and marketing in India.
Live Project on KORYO Brand by Future Group CompanyRishikesh Jella
Global Citizen Leadership- Live Project on KORYO Brand
Working on this project to find the management problems and how to increase the footfall of first time customers at the outlets selling KORYO Brand Products.
The document provides an overview of the Indian mobile handset industry. It discusses the historical background of the industry and key developments. It outlines the major players in the Indian market and provides future estimates projecting continued growth. The document also analyzes the industry using Porter's Five Forces model, finding moderate supplier and buyer power due to factors such as quality importance, availability of substitutes, and tendency of buyers to switch handsets.
The document discusses strategies for smartphone manufacturers to create hits in the competitive US smartphone market. It finds that to compete with Apple's success with the iPhone, manufacturers need to focus on three key aspects: collaboration with developer communities to bring innovations, building strong distribution infrastructure like iTunes, and providing an innovative app development platform. Creating hits requires launching large volumes and maintaining sales momentum over the first few weeks to maximize the "head area" and gain free advertising from media attention.
The document discusses forecasts and expectations for the FMCG sector in India. It notes that the government has allowed 100% FDI in electronics manufacturing and 51% in multi-brand retail to attract foreign investment. Several companies plan major investments in manufacturing facilities in India to meet growing demand. The consumer durables market is expected to reach $12.5 billion by 2015 and $20.6 billion by 2020, driven by factors like increasing incomes, changing lifestyles, and government policies encouraging FDI. Skill development programs aim to train 500 million people by 2022 to further fuel industry growth.
The Status Quo of the Development of Mobile Phone Industry in ChinaAM Publications,India
With the slow recovery of the world economy, the global consumer electronics market continues to grow, mobile phone market situation better than in previous years. As of June 2014, the Internet usage of Internet users reached 83.4%, the first time beyond the traditional PC usage, mobile phone as the first internet terminal equipment status is more stable. This paper first analyzes the status quo of China's mobile phone market development, based on this basis to find out the problems of China's mobile phone industry, and finally to the further development of China's mobile phone industry and countermeasures.
Apple nearly triples vietnam tablet growth in q2Brian TRAN
According to IDC's Worldwide Quarterly Tablet Tracker, the Vietnam tablet market grew 110% quarter-over-quarter in Q2 driven by pent-up demand for the new iPad and a price drop of the iPad 2, helping Apple nearly triple its market share to 78%. Meanwhile, Samsung saw a significant decline as consumers switched to iPads instead of Galaxy Tabs.
- The China mobile phone market size reached 175.6 million units in 2009, representing a 31% year-on-year growth despite an economic downturn.
- Nokia maintained the largest market share of the fragmented 2G market at 28.4% in December 2009. Samsung dominated the 3G market with 34.1% market share.
- The combined market share of international vendors in the China mobile phone market increased by 0.4% to 62.3% in December 2009.
The document summarizes India's consumer durables market. It discusses that consumer durables have a lifespan of at least 3 years and are hard goods. It then outlines key segments of India's consumer durables market and notes it has grown at around 10% annually, with rural markets growing faster. Major drivers of growth are increasing incomes, availability of financing, and organized retail expansion. The top categories by volume are refrigerators, ACs, washing machines, and mobile phones. The industry provides jobs and improves quality of life but faces challenges around manufacturing quality, after-sales service, and developing rural markets.
10 Insightful Quotes On Designing A Better Customer ExperienceYuan Wang
In an ever-changing landscape of one digital disruption after another, companies and organisations are looking for new ways to understand their target markets and engage them better. Increasingly they invest in user experience (UX) and customer experience design (CX) capabilities by working with a specialist UX agency or developing their own UX lab. Some UX practitioners are touting leaner and faster ways of developing customer-centric products and services, via methodologies such as guerilla research, rapid prototyping and Agile UX. Others seek innovation and fulfilment by spending more time in research, being more inclusive, and designing for social goods.
Experience is more than just an interface. It is a relationship, as well as a series of touch points between your brand and your customer. Here are our top 10 highlights and takeaways from the recent UX Australia conference to help you transform your customer experience design.
For full article, continue reading at https://yump.com.au/10-ways-supercharge-customer-experience-design/
http://inarocket.com
Learn BEM fundamentals as fast as possible. What is BEM (Block, element, modifier), BEM syntax, how it works with a real example, etc.
How to Build a Dynamic Social Media PlanPost Planner
Stop guessing and wasting your time on networks and strategies that don’t work!
Join Rebekah Radice and Katie Lance to learn how to optimize your social networks, the best kept secrets for hot content, top time management tools, and much more!
Watch the replay here: bit.ly/socialmedia-plan
The document discusses how personalization and dynamic content are becoming increasingly important on websites. It notes that 52% of marketers see content personalization as critical and 75% of consumers like it when brands personalize their content. However, personalization can create issues for search engine optimization as dynamic URLs and content are more difficult for search engines to index than static pages. The document provides tips for SEOs to help address these personalization and SEO challenges, such as using static URLs when possible and submitting accurate sitemaps.
Lightning Talk #9: How UX and Data Storytelling Can Shape Policy by Mika Aldabaux singapore
How can we take UX and Data Storytelling out of the tech context and use them to change the way government behaves?
Showcasing the truth is the highest goal of data storytelling. Because the design of a chart can affect the interpretation of data in a major way, one must wield visual tools with care and deliberation. Using quantitative facts to evoke an emotional response is best achieved with the combination of UX and data storytelling.
This document provides an overview of India's consumer durable industry. It discusses the growth of India's consumer market driven by rising incomes and access to financing. It outlines the various consumer classes in India and projections that the middle class will grow significantly. It also provides details on the major players in the industry, including their market shares, and the policies and regulations supporting the industry. The key points are:
- India's consumer durable market has grown significantly with rising incomes and easy financing. The middle class is projected to increase from 50 million to over 500 million people by 2025.
- Major players like Samsung, LG, and Whirlpool dominate various product categories like refrigerators and ACs.
- Government policies
The document provides an overview of the consumer durables market in India. Some key points:
- The consumer durables market in India is expected to grow from $12.5 billion in 2016 to $20.6 billion by 2020.
- India has the world's third largest television industry and the television market is expected to grow at a CAGR of 14.7% from 2016-2021.
- Urban areas account for about two-thirds of total sales in the consumer durables sector in India.
The document provides an overview of the consumer durables market in India. Some key points:
- The consumer durables market in India is estimated to have reached $15.5 billion in 2017 and is expected to reach $46.5 billion by 2020, growing at a CAGR of 41%.
- India has the world's third largest television industry, estimated at $10.19 billion in 2017 and projected to reach $13.31 billion in 2020, growing at a CAGR of 9.8%.
- Urban areas account for around two-thirds of total sales in the sector currently.
The consumer durables market in India is growing rapidly and is expected to reach $46.5 billion by 2020, up from $21.7 billion in 2017. Urban areas account for about two-thirds of sales currently. Key product segments driving growth include televisions, refrigerators, and air conditioners. Rural electrification and rising incomes are fueling demand in both urban and rural India.
The consumer durables market in India is growing rapidly due to rising incomes and increased electrification. The market grew at a CAGR of 11% between FY12-17 to reach $21.7 billion and is expected to reach $46.5 billion by 2020, growing at a CAGR of 13%. Urban areas currently account for around two-thirds of sales but rural demand is rising as electrification increases. Key products include televisions, refrigerators, air conditioners, washing machines and fans. Major domestic and international brands operate in the market.
The consumer durables and electronics market in India has grown significantly over the past decade and is expected to continue growing rapidly. By 2020, the electronics market in India is projected to increase to $400 billion from the current $69.6 billion. Similarly, the consumer durables market is expected to reach $12.5 billion by 2015, up from $7.3 billion in FY2012. This growth has been driven by rising incomes, expanding rural markets, policy support for the industry, and investments by global and domestic companies. Major players like Samsung, LG, and Videocon are further investing in manufacturing, R&D, and marketing in India.
Live Project on KORYO Brand by Future Group CompanyRishikesh Jella
Global Citizen Leadership- Live Project on KORYO Brand
Working on this project to find the management problems and how to increase the footfall of first time customers at the outlets selling KORYO Brand Products.
The document provides an overview of the Indian mobile handset industry. It discusses the historical background of the industry and key developments. It outlines the major players in the Indian market and provides future estimates projecting continued growth. The document also analyzes the industry using Porter's Five Forces model, finding moderate supplier and buyer power due to factors such as quality importance, availability of substitutes, and tendency of buyers to switch handsets.
The document discusses strategies for smartphone manufacturers to create hits in the competitive US smartphone market. It finds that to compete with Apple's success with the iPhone, manufacturers need to focus on three key aspects: collaboration with developer communities to bring innovations, building strong distribution infrastructure like iTunes, and providing an innovative app development platform. Creating hits requires launching large volumes and maintaining sales momentum over the first few weeks to maximize the "head area" and gain free advertising from media attention.
The document discusses forecasts and expectations for the FMCG sector in India. It notes that the government has allowed 100% FDI in electronics manufacturing and 51% in multi-brand retail to attract foreign investment. Several companies plan major investments in manufacturing facilities in India to meet growing demand. The consumer durables market is expected to reach $12.5 billion by 2015 and $20.6 billion by 2020, driven by factors like increasing incomes, changing lifestyles, and government policies encouraging FDI. Skill development programs aim to train 500 million people by 2022 to further fuel industry growth.
The Status Quo of the Development of Mobile Phone Industry in ChinaAM Publications,India
With the slow recovery of the world economy, the global consumer electronics market continues to grow, mobile phone market situation better than in previous years. As of June 2014, the Internet usage of Internet users reached 83.4%, the first time beyond the traditional PC usage, mobile phone as the first internet terminal equipment status is more stable. This paper first analyzes the status quo of China's mobile phone market development, based on this basis to find out the problems of China's mobile phone industry, and finally to the further development of China's mobile phone industry and countermeasures.
Apple nearly triples vietnam tablet growth in q2Brian TRAN
According to IDC's Worldwide Quarterly Tablet Tracker, the Vietnam tablet market grew 110% quarter-over-quarter in Q2 driven by pent-up demand for the new iPad and a price drop of the iPad 2, helping Apple nearly triple its market share to 78%. Meanwhile, Samsung saw a significant decline as consumers switched to iPads instead of Galaxy Tabs.
- The China mobile phone market size reached 175.6 million units in 2009, representing a 31% year-on-year growth despite an economic downturn.
- Nokia maintained the largest market share of the fragmented 2G market at 28.4% in December 2009. Samsung dominated the 3G market with 34.1% market share.
- The combined market share of international vendors in the China mobile phone market increased by 0.4% to 62.3% in December 2009.
The document summarizes India's consumer durables market. It discusses that consumer durables have a lifespan of at least 3 years and are hard goods. It then outlines key segments of India's consumer durables market and notes it has grown at around 10% annually, with rural markets growing faster. Major drivers of growth are increasing incomes, availability of financing, and organized retail expansion. The top categories by volume are refrigerators, ACs, washing machines, and mobile phones. The industry provides jobs and improves quality of life but faces challenges around manufacturing quality, after-sales service, and developing rural markets.
10 Insightful Quotes On Designing A Better Customer ExperienceYuan Wang
In an ever-changing landscape of one digital disruption after another, companies and organisations are looking for new ways to understand their target markets and engage them better. Increasingly they invest in user experience (UX) and customer experience design (CX) capabilities by working with a specialist UX agency or developing their own UX lab. Some UX practitioners are touting leaner and faster ways of developing customer-centric products and services, via methodologies such as guerilla research, rapid prototyping and Agile UX. Others seek innovation and fulfilment by spending more time in research, being more inclusive, and designing for social goods.
Experience is more than just an interface. It is a relationship, as well as a series of touch points between your brand and your customer. Here are our top 10 highlights and takeaways from the recent UX Australia conference to help you transform your customer experience design.
For full article, continue reading at https://yump.com.au/10-ways-supercharge-customer-experience-design/
http://inarocket.com
Learn BEM fundamentals as fast as possible. What is BEM (Block, element, modifier), BEM syntax, how it works with a real example, etc.
How to Build a Dynamic Social Media PlanPost Planner
Stop guessing and wasting your time on networks and strategies that don’t work!
Join Rebekah Radice and Katie Lance to learn how to optimize your social networks, the best kept secrets for hot content, top time management tools, and much more!
Watch the replay here: bit.ly/socialmedia-plan
The document discusses how personalization and dynamic content are becoming increasingly important on websites. It notes that 52% of marketers see content personalization as critical and 75% of consumers like it when brands personalize their content. However, personalization can create issues for search engine optimization as dynamic URLs and content are more difficult for search engines to index than static pages. The document provides tips for SEOs to help address these personalization and SEO challenges, such as using static URLs when possible and submitting accurate sitemaps.
Lightning Talk #9: How UX and Data Storytelling Can Shape Policy by Mika Aldabaux singapore
How can we take UX and Data Storytelling out of the tech context and use them to change the way government behaves?
Showcasing the truth is the highest goal of data storytelling. Because the design of a chart can affect the interpretation of data in a major way, one must wield visual tools with care and deliberation. Using quantitative facts to evoke an emotional response is best achieved with the combination of UX and data storytelling.
This document summarizes a study of CEO succession events among the largest 100 U.S. corporations between 2005-2015. The study analyzed executives who were passed over for the CEO role ("succession losers") and their subsequent careers. It found that 74% of passed over executives left their companies, with 30% eventually becoming CEOs elsewhere. However, companies led by succession losers saw average stock price declines of 13% over 3 years, compared to gains for companies whose CEO selections remained unchanged. The findings suggest that boards generally identify the most qualified CEO candidates, though differences between internal and external hires complicate comparisons.
The consumer durables market in India is growing rapidly and is expected to reach US$ 20.6 billion by 2020 from US$ 12.5 billion in 2016. Key factors driving this growth include rising disposable incomes, increasing electrification of rural areas, and growing online sales. Major segments of the consumer durables market include consumer electronics such as televisions, refrigerators, air conditioners, washing machines, and consumer appliances. The urban population currently accounts for around two-thirds of total sales in the sector.
This document provides an overview of the consumer durable industry in India. It discusses key characteristics of the industry such as rapid innovation and cost pressure. It then focuses on the Indian market, describing how it has grown significantly since liberalization. Major players like LG and Samsung now control a large share of the market. The document analyzes the industry using PEST and Porter's Five Forces frameworks. It provides statistics on market sizes and growth rates of various consumer durable segments. Finally, it discusses the leading players like LG and presents details about LG's operations, product portfolio, and financial performance.
The document provides an overview of the consumer durables market in India. Some key points:
- The consumer durables market in India reached $15.5 billion in 2017 and is expected to reach $46.5 billion by 2020, growing at a CAGR of 12.9%.
- Urban areas account for about two-thirds of total sales in the sector.
- Key consumer electronics products include color TVs, flat panel displays, digital video discs, and direct-to-home services. Key consumer appliances include refrigerators, washing machines, and air conditioners.
This document is a study on the consumer durable market for Samsung electronics Ltd in India submitted by Abhishek Kumar. It includes an introduction providing background on the consumer durable market in India. It also includes sections on the industry profile, Samsung company profile, objectives of the study, research methodology and theoretical background of the study. The document appears to be submitted for a Master's degree program.
Consumer durables are manufactured goods that are intended to last 3 years or more, such as appliances, electronics, and vehicles. Common consumer durables include refrigerators, washing machines, air conditioners, televisions, and mobile phones. The consumer durables industry in India is growing rapidly due to rising incomes, consumer financing options, and marketing of new products. Major players operate in India both through manufacturing plants and imports. The market is projected to continue expanding in both urban and rural areas.
This document provides an overview of India's consumer durable industry. It discusses the growth of India's consumer market driven by rising incomes and access to financing. It outlines the various consumer classes in India and projections that the middle class will grow significantly. It also provides details on the major players in the industry, including their market shares, and the policies and regulations supporting the industry. The key points are:
- India's consumer durable market has grown significantly with rising incomes and easier access to financing. The middle class is projected to increase substantially.
- Major players like Samsung, LG, and Whirlpool have large shares of the refrigerator and other markets.
- Government policies aim to encourage local manufacturing and exports through incentives
This document provides an overview of India's consumer durable industry. It discusses the growth of India's consumer market driven by rising incomes and access to financing. It outlines the various consumer classes in India and projections that the middle class will grow significantly. It also provides details on the major players in the industry, including their market shares, and the policies and regulations supporting the industry. The key points are:
- India's consumer durable market has grown significantly with rising incomes and easy financing. The middle class is projected to increase from 50 million to over 500 million by 2025.
- Major players like Samsung, LG, and Whirlpool dominate various product categories like refrigerators and ACs.
- Government policies aim
Indian Consumer Durables Industry Overview (2010)Bulbtiger Tiger
Overview of Indian consumer durable goods industry. The Indian durables market, with a market size of US$ 27.38 billion in2008–09, has grown by 7.1% over the previous year. The segment registered a growth of 18 per cent in 2009–2010 from US$ 5.5 billion in the previousyear. The consumer electronics segment contributes about 27 per cent to the total hardware productionin the country.Air conditioners (including industrial and office conditioners) constituted 38 per cent of the consumerappliances market, followed by refrigerators at 14 per cent, electric fans at 7.5 per cent, washingappliances at 7 per cent and sewing machines at 5 per cent.
This presentation discusses buyer behavior in the consumer electronics market in India. It notes that the consumer electronics industry has grown significantly due to factors like digital technology, a growing middle class with more disposable income, and easy financing options. However, consumer goods like refrigerators and washing machines still have low saturation, representing room for future growth. The presentation analyzes trends for various consumer electronics products and examines how consumers consider factors like product attributes, social influences, and financial decisions when purchasing electronics. It recognizes challenges in the dynamic Indian market like rapid innovation and competition. The consumer durables market is characterized by international brands competing intensely, and Korean companies like LG and Samsung currently lead most product categories. The conclusion is that long-term success requires strong
This document summarizes a study on consumer buying behavior in the consumer durable industries in India. It discusses the major segments of consumer durables, including electronics and appliances. It describes factors that have increased demand for these products in India like rising incomes, changing lifestyles, and availability of financing. It also outlines some of the major players in the Indian market like LG, Whirlpool, Godrej, Samsung, and Sony and provides brief descriptions of each company and their strategies.
The consumer durables and electronics market in India has grown significantly over the past decade and is expected to continue growing rapidly. By 2020, the electronics market in India is projected to increase to $400 billion from the current $69.6 billion. Similarly, the consumer durables market is expected to reach $12.5 billion by 2015, up from $7.3 billion in FY2012. This growth has been driven by rising incomes, expanding rural markets, policy support for the industry, and investments by global and domestic companies. The television, refrigerator, and air conditioner segments currently dominate consumer durable sales. Going forward, demand for products like smartphones, tablets, and energy-efficient appliances is expected to rise substantially.
White goods are heavy consumer appliances like refrigerators, air conditioners, washing machines that were traditionally painted white but now come in various colors. The white goods sector in India grew in the 1980s and 1990s with the entry of global players like LG and Samsung and increased availability of financing options. Major players in India include Samsung, LG, Whirlpool, Godrej and others. The sector is expected to reach $48 billion by 2022 with growing demand, though competition and economic downturns may impact growth. The government allows 100% FDI in single brand retail and 51% in multi-brand retail for this sector to boost investment. E-waste management remains a challenge due to lack of infrastructure though rules and company
Contents
Sector Information
GDP Contribution
Growth
Porter 5 forces Model
SWOT Analysis
About the company
Competitor Analysis
Marketing Strategies of SONY
Marketing Mix - 4P
STP
Distribution Strategy
Digital Marketing Strategy
Sales Forecast
Consumer buying behaviour
Factor analysis
Conclusion
References
The document provides an overview of the consumer durables market in India. Some key points:
- India's consumer durables market is estimated to reach USD12.5 billion in 2016 and USD20.6 billion by 2020, growing at a CAGR of 13%.
- By 2020, India's electronics market is expected to increase to USD400 billion from USD94.2 billion in 2015, growing at a CAGR of 33.5%.
- The television industry in India is expected to grow to USD14.7 billion by 2018 from USD8.9 billion in 2015, at a CAGR of 12.1%.
- Urban areas currently account for around 67% of total
The document provides an analysis of the consumer durables market in India through several sections:
1. The executive summary highlights key facts about the size and growth rates of the electronics, television, and overall consumer durables markets in India. It notes that India is set to become the fifth largest consumer durables market in the world by 2025.
2. Advantage India outlines the growing demand, policy support, and investments that make India an attractive market for consumer durables. The market size is projected to reach $20.6 billion by 2020 from $12.5 billion in 2016.
3. Market overview and trends discusses the segmentation of the market, evolution over time, current market sizes and shares between
The document provides an overview of the consumer durables market in India. Some key points:
- India's consumer durables market is expected to reach $12.5 billion in 2016 and $20.6 billion by 2020, growing at a CAGR of 13%.
- By 2025, India will become the fifth largest consumer durables market in the world. The electronics market is expected to reach $400 billion by 2020.
- Segments like televisions, air conditioners, and washing machines are growing rapidly due to rising incomes, increased electrification, and expansion of retail.
The document provides an overview of the consumer durables market in India. Some key points:
- The consumer durables market in India is estimated to reach USD12.5 billion in 2016 and USD20.6 billion by 2020, growing at a CAGR of 13%.
- Urban areas account for around two-thirds of total sales in the sector. However, rural markets are growing rapidly at a CAGR of 25%.
- Key product segments include televisions, refrigerators, air conditioners, washing machines, and consumer electronics such as smartphones, laptops, and tablets. Television is the largest segment and is expected to grow to USD14.7 billion by 2018.
The document discusses the consumer electronics industry globally and in India. It provides an overview of key players, trends, opportunities and challenges in the industry. It then discusses a potential business model and marketing strategy for an electronics retail store in India, including target customer segments, differentiation strategies, and the marketing mix.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
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The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
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3. Consumer Durables
MARKET & OPPORTUNITIES
CONTENTS
Indian Consumer Durables Industry 2
Conclusion 8
Profiles of Key Players 9
A report by KPMG for IBEF
4. 2 MARKET & OPPORTUNITIES
Indian Consumer Durables Industry
Consumer durables
White Goods Kitchen Applicances/Brown Goods Consumer Electronics
• Refrigerators • Mixers • Mobile Phones
• Washing Machines • Grinders • Televisions
• Air-conditioners • Microwave Ovens • MP3 Players
• Speakers and Audio Equipments • Iron • DVD Players
• Electric Fans • VCD Players
• Cooking Range
• Chimneys
The Consumer Durables industry consists of durable bulk of the sales with 30 per cent share of volumes. CTV,
goods and appliances for domestic use such as televisions, refrigerators and Air-conditioners together constitute more
refrigerators, airconditioners and washing machines. than 60 per cent of the sales in terms of the number of
Instruments such as cellphones and kitchen appliances like units sold.
microwave ovens are also included in this category. The
sector has been witnessing significant growth in recent Key Consumer durables - Share by Volume
Colour Television sets (CTVs) 30%
years, helped by several drivers such as the emerging retail
Refrigerators 18%
boom, real estate and housing demand, greater disposable
Air-conditioners 13%
income and an overall increase in the level of affluence
Washing Machines 5%
of a significant section of the population. The industry is
Others 34%
represented by major international and local players such
as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Source: Cygnus Quarterly Report, Aug 2007, Edelweiss Report on Industrial Production
Whirlpool, etc.
The consumer durables industry can be broadly In the refrigerators market, the frost-free category has
classified into two segments: Consumer Electronics and grown by 8.3 per cent while direct cool segment has grown
Consumer Appliances. Consumer Appliances can be further by 9 per cent. Companies like LG, Whirlpool and Samsung
categorised into Brown Goods and White Goods. The key have registered double-digit growth in the direct cool
product lines under each segment are as follows. refrigerator market.
In the case of washing machines, the semi-automatic
category with a higher base and fully-automatic categories
INdUSTRy SIzE, GROwTh, TRENdS have grown by 4 per cent to 526,000 units and by 8 per cent
to 229,000 units, respectively.
The consumer durables market in India was estimated to In the air-conditioners segment, the sales of window
be around US$ 4.5 billion in 2006-07. More than 7 million ACs have grown by 32 per cent and that of split ACs
units of consumer durable appliances have been sold in by 97 per cent.
the year 2006-07 with colour televisions (CTV) forming the Since the penetration in the urban areas for these
5. CONSUMER dUR ABLES 3
products is already quite high, the markets for both CTVs 51 million units and 65 per cent in value terms. Starting
and refrigerators are shifting to the semi-urban and rural on an already strong base, over six million users are being
areas. added every month and are building a large local market
The growth across product categories in different segments for mobile manufacturers.
is assessed in the following sections.
Low mobile penetration and favourable government
Consumer Electronics policies are driving global mobile phone manufacturers
to set up manufacturing facilities in India. Nokia started
The CTV production was 15.10 million units in 2006-07 its manufacturing unit in Chennai in January 2006 and
and is expected to grow by at least 25 per cent. At the produced about 25 million handsets in the first year of its
disaggregated level, conventional CTV volumes have operation. India has now become the second largest market
been falling while flat TVs have grown strongly. Market for Nokia phones in the world. Nokia is also exporting
sources indicate that most CTV majors have phased out mobiles from its Indian facilities to Sri Lanka. Motorola
conventional TVs and have been instead focusing more and Electronics Manufacturing Service vendors (EMS) like
on flat TVs. The flat segment of CTVs now account for over Foxconn and Flextronics have also set up plants in India.
60 per cent of the total domestic TV production and is likely According to a study by Gartner, though the world’s top
to be around 65 per cent in 2007-08. five handset makers will retain a major share of production
High-end products such as liquid crystal display (LCD) volume, local manufacturers can be expected to capture up
and plasma display CTV grew by 400 per cent and 150 per to a fifth of India’s overall mobile phone production volume
cent respectively in 2006–07 following a sharp decline by the end of 2011. Growing demand for low-cost mobile
in prices of these products and this trend is expected to phones and the need for EMS vendors to reduce their
continue. revenue exposure to Nokia, Motorola and Sony Ericsson,
The audio/video player market has seen significant for whom they are now manufacturing in India, are the
growth rates in the domestic market as prices have key factors expected to contribute to this trend. Most of
dropped. This trend is expected to continue through 2007- the components are imported today. Development of local
08, as competition is likely to intensify to scale and capture component manufacturing industry will be essential for
the mass market. continuous growth of total handset manufacturing. Given
the price-sensitivity of the Indian consumer, access to low-
Mobile Phones – The New Opportunity cost, feature-rich and local-specific chip designs, as well as
a strong distribution network, remain key considerations in
Mobile phone production in India is expected to grow at this market. Key stakeholders in the mobile phone industry
a Compound Annual Growth Rate (CAGR) of 28.3 per cent value chain provide these, and local manufacturers could
from 31 million units in 2006 to 107 million units in 2011. be expected to look to form alliances and partnerships
Production of mobile phones is expected to be a US$
13.6 billion industry by 2011. The current US$ 4.9 billion white Goods
industry revenue is growing at a CAGR of 26.6 per cent. The
growth of mobile telephony market is highest in India with Increased consumer demand is expected to boost the
6 to 7 million subscribers being added on a monthly basis white goods segment to achieve production levels of
compared to the US, which adds 2 million subscribers and US$ 5.09 billion by the end of 2007-08 against US$ 4.54
China, which adds about 5 million subscribers. billion in 2006-07, with a growth rate of 12.5 per cent.
India is also emerging as a global base for handsets as
key global players. India produced nearly 31 million mobile Air-Conditioners
phones in 2006 worth about US$ 5 billion. This segment
made the largest contribution to overall electronics Growth in the white goods segment was largely driven
production revenue and the total available market for by the Air-conditioner (AC) segment. Within this, split ACs
semiconductors. For 2007, it is projected that the handset have been the main growth drivers, recording a growth
production will increase by 68 per cent in volume to about of over 90 per cent in 2006. Growth, albeit at a slower rate
6. 4 MARKET & OPPORTUNITIES
Market share (Segmentation),ACs India, 2006 The washing machine market may be segmented
Pvt Sector 25% into semi-automatic and fully automatic machines. Semi-
Domestic 20% automatic washing machines enjoy a dominant share of
Corporate 20% 85 per cent. Fully automatic washing machines have been
Public Sector 15% gaining share as a consequence of product improvement,
Government 15% competitive pricing and resultant convenience. However,
Hospitals 5% semi-automatic machines will continue to play a major role
in the Indian market for quite sometime. Fully automatic
washing machines have been the growing at 44.5 per cent
Market Segment, ACs India , 2006
and semi-automatic segment, at about 18 per cent.
Organised The entry of MNCs has widened the range to more than
10 brands with a proliferation of models, while ensuring
technology upgradation. A visible impact of this churn has
unorganised
been the exit of a few established players from the market.
10 20 30 40 50 60 70 80 90 Refrigerators
per cent
n Windows n Split
Refrigerators are one of the most sought after appliances
in Indian middle class homes. The refrigerator market has
of 32 per cent, has also been experienced in the segment two segments: Direct Cool and the relatively new Frost-Free
of window ACs. The window AC segment is slightly less type. The market for refrigerators in 2006-07 was about
organised as compared to split AC segment. The market for 6.5 million units. The growth of refrigerator segment is
air-conditioners is divided quite uniformly across customer projected to be between 18 to 22 per cent over the next
segments, with about 45 per cent share for private sector 5 years.
corporates, 20 per cent for domestic use, 15 per cent each A critical success factor for the refrigerator market,
for public sector companies and government use and given its widespread use, is deeper reach into the market
5 per cent for hospitals. and increased penetration. Recently, the market is getting
reinforced by the replacement segment as well.
washing Machines
Vacuum Cleaners
The sales of washing machines has grown from about
780,000 units to 1,948,000 units during the period, fiscal Vacuum Cleaners are an emerging segment in the Indian
year 1999 to 2007, registering a near 12.2 per cent annual market, still at a nascent stage. The drivers for demand have
growth rate. been the improvement in life style and higher aspirations of
urban middle class and the top income brackets. While the
Washing Machines (Sales in Units)
market has been growing, this segment is not expected to
2,500,000
reach significant volumes soon.
2,000,000 Part of this could be attributed to the lifestyle
compatibility of Indian customers with the product. In
1,500,000
the large majority of Indian houses, for instance, floors
1,000,000 are not carpeted and the product will have to meet
dual requirements of sweeping and mopping. Another
500,000
impediment to the adoption of vacuum cleaners has been
0 the availability of cheap domestic help in most cities.
2002-03 2003-04 2004-05 2005-06 2006-07
Units
Source: CMIE
7. CONSUMER dUR ABLES 5
domestic Electrical Appliances Trends Favoring the Growth of the Consumer
durables Industry
Brown goods or domestic kitchen appliances are indicators
of the changing consumer scenario in post-liberalisation The key trends that impact the Indian Consumer Durables
economic environment. The major products constituting Industry today are reflected in the diagram and discussed
the brown goods market are mixers, grinders, irons, separately in the following sections.
microwave-ovens, rice cookers, water heaters or geysers,
electric fans and exhausts.
Income growth Growth of
The branded brown goods market has expanded at a and availability of organised
significant pace and is expected to retain the momentum financing retail
into the future as well. The market has been transformed
by the entry of over a dozen new brands, moreover
Indian Consumer
competition has intensified. While focus on price Durables Industry
competency remains a key priority, players have also started Falling prices
Increased
competition due
focusing on other product features such as safety and total increasing
to entry of large
affordability
cost of ownership of the device. players
Goods, like the rice cooker have been continuously
Apprediation
growing in a slow and steady manner over a significant of the Rupee
period of time, while microwave ovens have grown
exponentially after the initial period of customisation to
local requirements. Increasing Share of Organised Retail
The electrical iron market can be divided into two
segments: heavy and light-weight. The market is also The urban and rural markets in India are growing at an
segmented into two sub-segments: steam and non-steam annual rate of 7 to 10 per cent and 25 per cent respectively.
irons. One of the key enablers of this growth has been the
India being a tropical country, electric fans are an increasing penetration of organised retail. While there are
essential utility for more than six months of the year in most established distribution networks in both rural and urban
parts of the country. The present market size is estimated India, the presence of well-known brands and organised
at around 11.6 million pieces. The market is divided among sector is increasing.
ceiling, pedestal, wall and table fans. Industrial and exhaust At present around 96 per cent of the more than 5 million
fans are another important segment. The major players retail premises of all types in India are smaller than 50 sq mtrs.
include Orient Fan, Crompton Greaves, Jay Engineering, This situation is, however, transforming. Shopping malls are
Bajaj Electricals, Polar, Khaitan and Alsthom. becoming increasingly common in Indian cities, and based
The electrical appliances industry, which had been on plans announced by key developers, a proliferation of
focused on the urban market, is now reaching out to new malls is expected over the next three years. Although
semi-urban and rural markets as well, because of the shift many of the new malls would be much smaller than their
in living style of the population, increasing electrification western counterparts, Indian consumers will have a far
of villages and relatively higher purchasing power of larger number of attractive, comfortable, brand-conscious
consumers. As the market penetrates into the core outlets in which to shop. As a result, the organised retail
middle class segment in both urban and rural areas, it industry is expected to cover a market share of 15 to 18 per
is expected to expand phenomenally, offering large cent by the end of 2010, from just 3 per cent at present.
volumes to the industry. This will have a positive impact on the consumer
durables industry, as organised retailing would not only
streamline the supply chain, but also facilitate increased
demand, especially for high-end and branded products
8. 6 MARKET & OPPORTUNITIES
Narrowed Price Gap and Increased Affordability Income Growth and Structural Changes
of Products
Apart from steady growth in income of consumers,
Advanced technology and increasing competition is consumer financing has become a major driver in the
narrowing the price gap between products in this sector, consumer durables industry. In the case of more expensive
which has driven demand and enabled high growth. consumer goods, such as refrigerators, washing machines,
Products that were once beyond the reach of the middle colour televisions and personal computers, retailers are
class Indian are now affordable to many. Growth in marketing their goods more aggressively by providing
demand for products, once considered luxuries, such as easy financing options to the consumers by partnering
air-conditioners, washing machines and high end CTVs, is a with banks.
reflection of this phenomenon. While this is aimed at the lower and middle income
groups, the higher income groups are also being attracted
Entry of Large Players Increasing Competition by opportunity.
With potential heavyweight retail stores like Croma, Critical Success Factors for Manufacturers
E Zone and Reliance Digital, the high-end segment has been in the Sector
exposed to a new form of purchase, allowing the consumer
to feel/experience the product in a suitable ambience All key segments of the Indian consumer durables industry
(significant in decision-making). Part of the growth are growing and the industry offers an attractive investment
momentum in high-end segments of consumer electronics option. Success would require players to address a few key
could be attributed to the competitive evolution of factors, based on the industry drivers and trends.
organised retail, stimulating the demand through exposure
to high end shopping experiences. distribution and Service Network
Rupee Appreciation As the market spreads out from saturated urban regions to
low penetration rural areas and tier II/III towns, distribution
Raw material cost constitutes more than 75 per cent of network and brand recognition will continue to play ever
expenditure incurred by consumer durable manufacturers more significant roles in determining market share and
in India. The rapid appreciation of rupee vis-à-vis the US profitability. The market for consumer durables is moving
dollar in 2007 is expected to ease raw materials costs for towards a stage where it could soon be defined “as broad
Indian manufacturers and benefit those addressing the as it can be reached”. The central government plans
domestic market. of making electricity available for all by 2012, will also
open up immense opportunities for the consumer
Cost Structure of Companies for Quarter Ended June ‘07
durables segment.
Whirlpool
BPL Product Technology
Mirc
While the market is continuously expanding, there are
Voltas
several concerns that will have to be addressed while
Videocon
moving the focus towards tier III towns and rural areas. Total
Goldiam cost of ownership would be a key factor that would drive
Blue Star purchase in these regions. From an organised industry’s
perspective, success would be determined by superiority of
0 20 40 60 80 100 120 140 160 180
n Raw materials n Staff cost n Other expenditure product technology, which could provide added benefits
n Depreciation n Interest n Tax to the customer, for example; low power consumption, low
Source: Cygnus Quarterly Report 8/2007, Consumer Durables Industry service requirement and low cost of operation.
9. CONSUMER dUR ABLES 7
Innovation in Advertising and Promotions size, growth trends and key drivers, the following segments
can be outlined for their sustained growth:
Increasing competition and technology adoption has • High End CTV
led to a situation where the basic function of most of the • Mobile Phones
consumer durable goods has been largely commoditised. • Distribution & Retail
This has created a situation where identifying a unique • Air-conditioners
differentiating factor and promoting it effectively has
become imperative. The advertising and promotions Some key Observations of Pertinence to Investors
spends in the industry have been growing steadily.
Significant focus has been laid on mapping key concerns, Branded products sell in unorganised retail as well
that could act as demand drivers and proactive marketing
campaigns aimed at addressing specific concerns of Brands account for 10 per cent of the total consumer
prospective customers. For instance, instead of focusing on goods market in India, while organised retailing is around
the basic space conditioning attribute, LG’s AC marketing 2 per cent of the total industry. Though branded products
campaigns focus on health benefits resulting from their are perceived to be costlier than non-branded products, the
superior air filtering technology, thus striking a chord with penetration of branded products is increasing. The relative
urban consumers for whom safety from pollution and dust shares of branded products and organised retail indicate
is perhaps as significant a need as air-conditioning. that a significant share of branded products is being sold
Consumer financing has become a major engine of through unorganised channels. This highlights the need for
growth in the consumer-durables industry. In the case of a strong distribution network to penetrate deeper into the
more expensive consumer goods, such as refrigerators, potential market.
washing machines, colour televisions and personal
computers, retailers are joining forces with banks and Different requirements to address urban and rural
finance companies to market their goods more aggressively. population
Among department stores, other factors that will support
rising sales include a strong emphasis on retail technology, While income levels are rising across consumer segments
loyalty schemes, private labels and the sub-letting of floor in both urban and rural markets, the level of infrastructure
space in larger stores to smaller retailers selling a variety development and facilities vary widely across these
of products and services, such as musical recordings markets. This has resulted in the emergence of two separate
and coffee. consumer segments with different demands. Independent
retail outlets, handcarts and kiosks serve rural areas. In cities,
Attractive locations independent retailers, retail chains (including shopping
malls), department stores and supermarkets are becoming
Since raw materials account for more than 75 per cent of increasingly common.
the manufacturing cost of consumer durables and with a
significant part of it being imported, Maharashtra’s, Gujarat’s Products need to address Indian working environment
and Tamil Nadu’s proximity to ports, high demand for
durable goods and factor consolidation in manufacturing The other major influence on the consumer durable industry
sector make them amongst the more considered is product customisation to address unique requirements of
destinations for investment in manufacturing. the Indian market. Some examples of products customised
for India include refrigerators that can keep foodstuff cool
for long even during a power cut and washing machines
OPPORTUNITIES FOR INVESTING IN CONSUMER with extra rinse cycles. At the same time, these features are
dURABLES INdUSTRy to be delivered at no extra cost to the consumer, given the
price sensitive nature of the market.
The rapid growth in the consumer durables industry offers
several attractive investment options. Based on the industry
10. 8 MARKET & OPPORTUNITIES
Conclusion
The consumer durables industry in India is set for sustained Success in the long-term will require firms to develop
growth over the long term, fuelled by favourable consumer a wide and robust distribution network, differentiate
demographics, overall growth in services and industrial their products in areas of relevance to the consumer and
sectors and infrastructure development in suburban and innovate in the areas of promotion, product financing, etc.
rural areas. Several Indian and MNC players are looking The product and approach to market need to be customised
to strengthen their presence in India to leverage this to suit the unique needs of the Indian market.
opportunity.
11. CONSUMER dUR ABLES 9
Profiles of Key Players
BLUESTAR MIRC ELECTRONICS
Net Sales (US$ million) = 354.97 (FY’07) Net Sales (US$ million) = 355.60 (FY’07)
PAT (US$ million) = 15.78 PAT (US$ million) = 7.50
EPS (Cents) = 17.56 EPS (Cents) = 5.27
P/E = 26.4 P/E = 7.18
ROE = 33 per cent ROE = 14 per cent
ROCE = 28 per cent ROCE = 21 per cent
Blue Star is the largest central air-conditioning company MIRC Electronics commands strong brand equity largely
with a network of 23 offices, four modern manufacturing owing to the success of its Onida brand among consumers.
facilities and around 2,000 employees. It fulfils The company aims at technology leadership. The finest
air-conditioning needs of a large number of corporate and design have made the company a leading player in the
commercial customers and has also established leadership electronics and entertainment business today.
in the field of commercial refrigeration equipment ranging For financial year ended March 2007, the company
from water coolers to cold storages. recorded change in the profit by 3 per cent to US$ 7.49
The company recorded an increase in net sales by 48 million. The net sales of the company in the financial
per cent to US$ 102.46 million in Q1,FY‘08 compared to year ended 2007 recorded an increase of 24 per cent to
US$ 69.23 million in Q1,FY‘07. For financial year ended US$ 335.60 million and is expected to increase to
March 2007, the company recorded an increase in profit by US$ 422.81 million and US$ 540.03 million in the financial
46 per cent to US$ 15.78 million and is expected to reach year ending March 2008 and March 2009, respectively.
US$ 24.50 million and US$ 33.36 million in the financial year The operating profit of the company during fiscal
ending March 2008 and March 2009 respectively. The net year 07 increased by 1 per cent as compared to financial
sales of the company in the financial year ended March’07 year 06 due to increase in net sales by 24 per cent
recorded an increase of 36 per cent to US$ 354.97 million offset by an increase in operational expenditure of
and is expected to increase to US$ 479.56 million and US$ 26 per cent.
640.32 million in the financial year ending March 2008 The company is planning to set up a manufacturing
and March 2009 respectively. This increase in profit can be plant in Uttaranchal for manufacturing various consumer
attributed to the company’s plans to expand, to increase electronic products. This plant aims to take advantage of
its production capacity and enhancing its product range, direct and excise tax benefits. Although, nothing has been
by developing special purpose products and comfort finalised yet, it is likely that the expenditure for the project
application. The company is setting up a new manufacturing will be financed through internal accruals.
plant in Thane.
12. 10 MARKET & OPPORTUNITIES
VOLTAS BAJAJ ELECTRICALS
Voltas is an engineering company of the US$ 8.86 billion Net Sales (US$ million) = 239.12 (FY’07)
Tata Group. The company offers engineering solutions in PAT (US$ million) = 8.67
areas such as heating, ventilation and air-conditioning, EPS (US$) = 0.99
refrigeration, electro-mechanical projects, textile P/E = 8.71
machinery, machine tools, mining and construction ROE = 39 per cent
equipment, materials handling, water management, ROCE = 24 per cent
building management systems, indoor air quality and Bajaj Electricals is engaged in marketing of various
chemicals. The operations have been organised into four consumer household and industrial goods. They are
independent business specific clusters: air conditioning also into the business of manufacturing, erection and
and refrigeration, unitary products, engineering products commissioning of transmission line towers, telecom towers,
and international operations. mobile telecom towers and wind energy towers. Its plants
The company recorded an increase in net sales of 44 are located in Maharashtra.
per cent to reach US$ 184.81 million in Q1,FY’08 compared The company recorded an increase in net sales by 33
to US$ 128.66 million in Q1,FY’07. For financial year ended per cent to US$ 55.92 million in Q1,FY’08 compared to
March 2007, the company recorded a profit of 22 per cent US$ 42.01 million in Q1,FY’07. For financial year ended
to US$ 26.16 million. The net sales of the company in the March 2007, the company recorded an increase in the profit
financial year ended 2007 recorded an increase of 30 per by 39 per cent to US$ 8.67 million and is expected to reach
cent to US$ 532.15 million. US$ 13.72 million and US$ 18.18 million in FY’08 and FY’09
Voltas has tied up with RBS Home Appliances Ltd for the respectively. The net sales of the company in the financial
use of 640 service centres that Voltas has across the country year ended 2007 recorded an increase of 28 per cent to
for after sales services. US$ 239.12 million and is expected to increase to US$
310.83 million and US$ 413.43 million in the financial year
ending March 2008 and March 2009 respectively.
VIdEOCON Bajaj Electricals is planning to outsource manufacturing
of gas appliances and water dispensers, which will be
Videocon is a market leader of consumer electronics marketed under its own brand, reports agency sources. The
and home appliances in India. Videocon manufactures company aims to introduce two new lines of products into
home appliances such as refrigerators, microwave ovens, the market by end of 2007. The company is further planning
compressors, ACs and washing machines. to introduce inverters into the market by September-
The company recorded a change in net sales by -3 per October this year, as well as expanding the capacity of its
cent to US$ 64.08 million in Q1,FY’08 compared to US$ Ranjangaon facility with an investment of US$ 9.97 million.
65.75 million in Q1,FY’07. For financial year ended March
2007, the company recorded a change in the profit by 3 per
cent to US$ 7.24 million. The net sales of the company in NOKIA- A SUCCESSFUL MNC IN INdIA
the financial year ended 2007 recorded an increase of 3 per
cent to US$ 258.65 million Mobile phone landscape in 1995 was one open business
Videocon is planning to acquire Daewoo’s consumer opportunity for all the players to capture and succeed.
electronic businesses worldwide. The acquisition would Nokia was one company that succeeded in capturing this
bring Daewoo’s consumer electronics business including opportunity effectively. One of the key differences between
LCD TVs, plasma TVs and components into Videocon’s fold, Nokia and its competitors was that Nokia was completely
strengthening its position in the industry. It would also have focused on mobile phones; while its competitors had
a strategic fit into the group as it would find a consuming consumer electronics, home appliances, etc. The case study
partner for its recently-acquired Thomson’s picture tube analyses what went right for Nokia and its success strategy.
business.
13. CONSUMER dUR ABLES 11
Being focused and ahead of the curve are the chief ThE “BRANd”
components of Nokia’s strategy. Nokia invested in each
vertical of the handset ecosystem -- manufacturing, Whether it is N series or the E series, the key focus is the
distribution, design and R&D. ‘Mother Brand’ – Nokia. All the products for various
segments of the market from low-end to high-end are
produced under the Nokia brand. Nokia brand is present
ThE dISTRIBUTION LEAdER across price segments with value for money at that price
with a most sought after and must have brand image.
Nokia started distributing its phones through a partnership
with HCL (formerly Hindustan Computers Ltd.), which had
already built an extensive network for its own products. ‘LOCAL’ PROdUCTS
Recently, Nokia has decided to supplement that with its
own distribution efforts. Nokia’s lead in distribution is Nokia built custom-made mobiles for Indian conditions.
clear. Today, India has some 95,000 outlets that sell mobile The Nokia 1100, the first made-for-India phone, has been a
phones. It is estimated that Nokia has a monopoly presence runaway success. Having a torch built into a mobile phone
in more than half of them. is a distinct and tangible benefit which helps in a country
with frequent power cuts.
MANUFACTURING EdGE
Nokia’s big investment in India has been in the
Manufacturing and R&D centers in India. Nokia has several
R&D centers and labs in India including a $150 million
handset manufacturing facility in Chennai setup in 2005.
More than 25 million handsets have been produced so far
with almost 30 per cent of them exported to neighboring
countries.
14.
15. Exchange Rate Used
year Exchange Rate
(INR/US$)
2000-01 45.75
2001-02 47.73
2002-03 48.42
2003-04 45.95
2004-05 44.87
2005-06 44.09
2006-07 45.11
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