The Indian economy is growing and so are the demands of its 1.2 billion people. With the increased purchasing power and better access to quality products at discounted rates, every Indian wants to get a new TV or a Microwave to serve their needs. This silent revolution in the Consumer durables market is taking India by storm and also making our people more technologically advanced.
As per an extensive research done by Nexhop, the numbers are hugely in favour of the consumer durables market to bring in the big bucks in the near future.
The highlights are as follows:
- India is all set to become fifth largest Consumer durable market in the World by 2025
- Consumer durables market is anticipated to expand at a Compound Annual Growth Rate (CAGR) of 14.8% to US$ 12.5 billion in FY15 from US$ 7.3 billion in FY12.
- Online retailing is expected to grow up to US$ 8.08 billion industry by 2016, as per rating agency Crisil.
- Already the largest growing Consumer electronics market with CAGR of 24 %.
- Television Sales in India is third largest in the world and growing with a CAGR of 16 % and is expected to go to US$ 14.7 billion my 2018
Market Share:
Following are the major causes that will drive the progress:
Growing Demand:
Market demand has witnessed a tremendous growth in past few years due to the rise in per capita income and easy access to credit. Increase in Internet connectivity has also increased the online sales and resulted into a huge market growth.
Investments in India:
Consumer durables sector has attracted significant number of investments from the giant manufacturers like LG, Samsung and others to invest in India for setting up manufacturing and Sales units.
Govt. Policy:
The Govt. of India has allowed 100% FDI in the electronics hardware manufacturing sector through the automatic route and 51% of FDI in Multi brand retail. This proved to be a key attraction for the foreign investors. National Policy on Electronics, which was drafted in 2011 to boost Electronics Systems and Design Manufacturing industry, has proved to be beneficial too.
New Channels:
Online Marketplace has created a huge impact on the conventional model of selling. Few differentiators provided by online retailers have managed to draw great attention in a short span of time. As per reports, current active consumer base is 25 million, which has been growing tremendously and is expected to double by 2018.
Growing semi-urban and rural market:
Semi urban and rural markets sale is more than 35% and growing with a CAGR of more than 24.4%. As per reports, rural Indian market would witness significant growths of consumer durables like refrigerators, TVs etc. in the coming years.
Current consumer base in India:
Urban consumer: 65% Rural and Semi Urban consumer: 35%
The Road Ahead:
As per the reports from Digital Consumer Tech Survey 2014, India is expected to become an important market for wearable technology like smart watches, fitness monitors, gears and glasses.
As per the reports by global information and measurement giant Nielsen, rural India’s FMCG and consumer durables market will spike up to reach US$ 100 billion mark by 2025.
Internet has a huge contribution in facilitating a cheaper and more convenient means to increase a company’s reach and would be playing a key role going forward.
Looking at all these numbers and positive signs in Indian economy, one can be sure that the Indian of the future likes to work hard and party harder. India is heading towards a future where one would enjoy all the benefits of technology and get pampered by high quality gadgets and appliances and would avail all the luxuries that they will have at their disposal.
We believe that these positive changes will make the country a popular destination for Consumer durable product companies and encourage them to manufacture as well as sell in India and it will provide huge opportunities for Businesses to flourish and gain from this growing demand.
