White Goods Sales Vibrant in India's Rural Markets
Jun 16, 2004
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Long thought of as luxuries for urbanites, appliances are finding their way into Indian rural homes.
Products such as microwaves and air-conditioners -- which are considered to be very urbane in India -- have penetrated the semi-urban markets. Experts say that a study of the rural cross-section shows that in villages in a place such as Punjab, India a sarpanch (garment maker) would have all the gadgets from a vacuum cleaner and microwave to an air-conditioner in his or her house.
The latest report by FICCI pegs the growth of consumer durable goods in the rural markets in the last financial year at around 25 percent. Compared to 7 to 10 percent in its urban counterparts, rural India becomes the next destination for consumer durable goods sector.
The report shows buoyant trends in consumer durable goods sector heralded by color TVs and refrigerators, followed by air-conditioners, microwaves, and other electronic gadgets paving the way for further investment in the rural sectors.
Rural markets have not been tapped in such a big way, and there is a lot of potential for growth, says Anil Arora, head of Marketing for LG Electronics. He adds that in the company's last financial year, 55 percent of its total sales turnover was from rural and semi-urban markets. (The Hindu Business Line)
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