Growing preference among consumers for high-end, branded technology products is expected to lead the Indian consumer durables segment to double-digit growth in the 2005-2006 fiscal year, according to a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).
According to the survey, color TVs will grow 15 to 20 percent, DVD players will grow 25 percent, refrigerators will increase 5 to 10 percent, air-conditioners will grow 20 to 25 percent, washing machines will grow 5 to 10 percent, and microwaves will grow 25 percent. MP3 players are also expected to achieve a growth rate of 30 percent.
With competition narrowing down in the price differential between branded and non-branded goods, companies are offering after-sale service and support, FICCI president Onkar S. Kanwar said, adding that it was influencing customer preference in favor of branded products.
While the TV segment declined 5.3 percent in the April to June period of 2005, the category achieved a volume growth of 36.2 percent and value growth of 25.8 percent in the first quarter of 2005-06, FICCI said.
According to the study, the urban consumer durable market for products, including TVs, increased 7 to 10 percent, whereas the rural sector posted a 25-percent annual growth rate.
The refrigerator industry reached 3.9 million units in the 2004-2005 period from 3.7 million units in the previous fiscal year, registering a growth of 5 percent, the survey said. Similarly, the air-conditioning industry achieved sales of 1.2 million units during 2004-2005 with a growth of 25 percent from 2003-04, the study said. Microwave ovens have grown 27.3 percent from 2003-04, according to FICCI. (Sify.com)
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