The consumer durable industry in India is witnessing healthy growth rate this summer on account of high demand for refrigerators and air conditioners.
The Indian consumer durable industry is recording strong growth due to substantial increase in the summer sales. The summer has registered the highest rise in sales of air conditioners and refrigerators, as reported by Business Standard
The industry has posted 30% growth in Q1 2010 against the corresponding period in 2009 (Q1 2009). The sales of display category items such as Conventional Flat Panel Displays (LCDs, PDPs and Flat screen TVs) also rose phenomenally in Q1 2010. The sales of FPD registered growth of around 70% and AC posted sales increase of nearly 50%. Besides, the sales of home appliances surged by a healthy growth rate of 40%.
The main reason for uptrend in the sales of consumer durables is strong consumer sentiments in the backdrop of higher disposable income and the good performance of domestic economy.
Moreover, the consumer preference has shifted towards products and devices that come with smart technology, innovative design and sleek look. The demand for technologically advanced devices has risen owing to the benefits of making life easier and consume less time.
However, these has been an increase in prices of AC and appliances due to high commodity prices such as copper, steal, etc and hike in VAT by few state governments. Despite the prices increase, almost all the categories recorded handsome growth.
The Indian consumer durable industry has experienced substantial changes for the last few years on account of several factors. Among these factors, greater affordability and changing lifestyle boom in housing and real estate and commercial advertising have been the major factors that bring revolution in the Indian consumer behavior pattern.
According to a research report “Global Consumer Electronics Market Forecast to 2013
”, by RNCOS
, the Indian consumer electronic industry represents immense growth potential for years to come. The industry is expected to grow at a CAGR of nearly 19% during 2010-2013 to US$ 9.5 Billion.
A Senior Research Analyst at RNCOS said, “India represents huge potential for the consumer durable industry as the penetration level of many appliances is very low. For example - the usage of refrigerator stands at around 18%, washing machine (6%), microwave oven (about 1%) and air conditioner (less than 2%). The low penetration of these products shows a lucrative untapped market.”
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