The Indian consumer goods market has made considerable progress in last one year with the improvement of consumer confidence and revival of customer attraction schemes.
High-end consumer goods like automatic washing machines, plasma screen TVs and air-conditioners have started making way to customers homes at a fast pace after almost one year when the consumer confidence was at its bottom and potential buyers ceased their expenses in wake of the global economic slowdown, as reported by
Economic Times.
As per the industry estimates, this segment of high-end consumer goods posted growth of around 25% in one year period beginning from October 2008 to September 2009, indicating to the sustainable uptick in the sales of motorcycles and cars. Sales of LCD televisions (that constitute around 7% of total sales in the country) surged 83% to 7 Lakh sets whereas plasma television rose 19% to 28,000 sets in the same period last year, as per the data given by market research firm ORG-GFK.
A leading market research firm
RNCOS has also claimed in its report "
Booming Consumer Electronics Market in India” that the affluent middle class population has given a new direction to the Indian consumer electronic industry. Rapid economic growth has driven consumer spending which in turn filliped consumer goods demand in the country.
The report further states that the penetration of several electronic products like refrigerators and TV has reached the saturation level in urban areas but there is still room in semi-urban and rural areas where the market is currently shifting its focus for further expansion. Under the present scenario, many foreign players have found the market extremely lucrative and shown interest in making their presence. Besides, consumers are upgrading their existing products, giving further impetus to the growth.
Furthermore, customer favorable schemes like loan facility have revived and manufacturers are busy in launching zero interest finance schemes. Under this kind of scheme, manufacturer pays interest cost on the loan while transaction fee for the application is either paid by customer or shared between manufacturer and dealer.
Although the consumer gets benefit on easy installments, manufacturer earns revenue from bulk sales.
According to a Research Analyst at
RNCOS, “The Indian customer goods industry has witnessed remarkable growth in recent year on the back of several factors like retail boom and increasing consumer disposable income. Despite this, consumer electronic goods have low penetration in the country, indicating to immense growth opportunities for players to make maximum of it.”
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