Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
   
issue: July 2005 APPLIANCE Magazine

New Delhi Report
Consumer Trends in the Indian Market


 Printable format
 Email this Article
 Search

by Adite Chatterjee, India correspondent, APPLIANCE magazine

The Indian market has long been touted as one of the largest markets in the world.

But manufacturers of consumer durables have had a different story to tell, and this is one of price-sensitive consumers, intense competition, retailing difficulties, and other such elements. Even so, figures show that the Indian consumer durable market has indeed reached the magic figure of Rs 200 billion (approx. U.S. $4.6 billion). What’s more, it is growing across all product categories, led by frost-free refrigerators and flat-screen televisions.

The top 40 million households in India—24 million in urban India and 17 million in rural India—constitute the core market for consumer durables. Sales of consumer durables in rural India also is growing, though the more developed states such as Punjab, Haryana, Gujarat, Maharashtra, Karnataka, and Kerala account for higher penetration of durables.

The reasons for the healthy growth of the durables market are many. At one level, there is societal change taking place with a breakdown of the “joint” or extended family system and an increase in nuclear families. Easier finance options, greater purchasing power, and expansion of dealer networks and after-sales service have all helped in creating demand for consumer durable products. Consider this: From 1992 to 1993, the average Indian family spent barely Rs 5,475 (approx. $126) per year across a variety of product categories, including food, beverages, and tobacco, clothing and footwear, rent, fuel and power, furniture, appliances and services, healthcare, transport and communication, education, and recreation. By 2002 to 2003, this figure had increased to Rs 15,082 (approx. $347), a compounded annual growth rate of 10.1 percent at current prices. If we add a population growth rate of 1.8 percent per year, the growth rate in total consumer spending amounts to 12 percent.

Color televisions continue to be the fastest growing category with growth rates of 35 percent per year. In 2002 and 2003, 23 percent of Indian households in the top six cities purchased a color TV (CTV). In other words, one in every five homes in these cities acquired a TV set. Within CTVs, the flat TV segment has been growing rapidly. Other trends indicate growing sales of the 29-in models and high-end products such as projection TVs. However, the category has also witnessed an erosion in prices. In 2002, while 24 percent of the sales came from CTV models that were priced at less than Rs 8,000 (approx. $184), in 2003 this figure had gone up to 32 percent. Out of the total sales in 2003, nearly 42 percent of sales was contributed by models in priced at Rs 11,000 (approx. $253) and higher. But in 2003, this share dropped to 28 percent. As the demand for plasma and widescreen TVs grows, price erosion within the 21- and 29-in flat CTV categories is putting pressure on sales growth of the conventional 21- and 29-in models.

The market for home audio systems, including mini- and home-theater systems, is one of the few categories to have seen a decline in sales volumes, shrinking from an estimated 241,500 units in 2002 to 188,600 units in 2003. The mini hi-fi system, which is the largest segment among home audio systems, has seen a trend towards feature add-ons. The audio-video segment is seeing growth as well, particularly for DVD players.

Penetration of large-capacity refrigerators is an emerging trend in Indian households. The fully automatic segment of washing machines is also witnessing growth. More importantly, entry-level models are offering bigger larger capacities, and second-time buyers are going in for higher-end products.

 

Daily News

...........................................................

Jul 24, 2014: Remodeling Spending to Be Slower, But Still Strong, in Early 2015

Jul 23, 2014: Whirlpool North America Reports Record Operating Profits

Jul 23, 2014: Japan Destroyed 3.6 Million KG Fluorocarbons from Commercial Refrigerators and AC

Jul 22, 2014: Lennox International Reports Record Profit in Second Quarter

Jul 22, 2014: Whirlpool Launches Hybrid Heat Pump Dryer

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

March 2014: Market Research - 62nd Annual U.S. Appliance Industry Forecast
February 2014: Appliance Magazine Market Insight: December 2013
January 2014: Market Research - Appliance Historical Statistical Review: 1954-2012
January 2014: Appliance Magazine Market Insight: November 2013




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Pharmalive | Plastics Today | Powder Bulk Solids | Canon Trade Shows