Some more news on the action on Consumer Durables. Should be noted that LG is planning a low cost washing machines, TVs and solo micro waves for the rural markets.
"LG TO INVEST RS.600-CRORES
LG Electronics India is looking to invest Rs600crores in marketing and new product development this year even as it alters its overall strategy for India yet again. Having migrated from a "mass" brand to a premium label over the last two years, LG is now once again trying to expand horizons by focusing on the semi-urban and rural markets to generate growth during these times of slowdown. This earmarked investment will be used for developing India-specific products, increasing marketing and advertising spends, and also in expanding sales and service network in the hinterland and in semi-urban areas. Sources instead pointed to the fact that LG is looking at a 15% growth in 2009, to close the year with sales of Rs12,500 crores. As part of its rural focus, LG will launch low-priced washing machines, solo microwaves, CRT (cathode ray tube) television sets and air conditioners while increasing area offices. About 35% of its sales came from the rural market last year and this share would increase to 40% in 2009.
Source : DNA Money: March 16, 2009 "
Thursday, March 19, 2009
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According to MART Rural, the rural market accounts for 53% of FMCG sales and 59% of consumer durables sales in the country.
ReplyDeleteTelevisions, refrigerators and ceiling fans have gained over radio and bicycles.
Data released by market researcher ORG-GFK, showed that television sales rose 29.3% to 10.3 million sets, while growth in refrigerator sales was 12%. Washing machines sales grew 15% while microwave ovens and air conditioners grew 26% and 17%, respectively.