Indian Consumer Electronics and Durables to reach Rs 52,000 crores

According to a press release by Assocham on 27th April, the Indian Consumer Electronics and Durables Sector to reach Rs 52,000 crores  ( US$ 10,000 Million)

Growing at a compounded annual growth rate (CAGR) of about 15 per cent, the consumer electronics and durables sector in India is likely to reach Rs 52,000 crore by 2015, apex industry body ASSOCHAM said today.

The consumer electronics and durables industry is currently poised at about Rs 34,000 crore according to a study titled ‘Emerging trends in Consumer Electronics and Durables Industry,’ released by The Associated Chamber of Commerce and Industry of India (ASSOCHAM).
While, global consumer electronics and durables industry is growing at about 10 per cent CAGR and is currently estimated at about Rs 16 lakh crore and is likely to cross Rs 21 lakh crore mark by 2015, according to the ASSOCHAM study.
“Demand for consumer electronics and durables is driven by a young demographic population, coupled with rising disposable incomes amid skilled and highly educated workforce,” said Mr D.S. Rawat, secretary general, ASSOCHAM while releasing the findings of the study.
“Besides, low penetration levels, easy availability of finance options, growing prominence of consumer electronics’ retail stores, online retail industry and a robust 400 million plus Indian middle class with a comprehensive rise in level of affluence is also fuelling the demand in this industry,” said Mr Rawat.
Multi-national companies (MNCs) with superior technology and better quality control account for a market share about 70 per cent of the overall consumer electronics and durables market in India and maintain a strong hold on the urban middle class segement growing at about 12 to 15 per cent, according to the ASSOCHAM study.
The consumer durables and electronics market in rural and semi-urban areas account for about 40 per cent of the overall market and is growing at about 30 per cent CAGR.
Consumer electronics and durables market in India is divided into three segements namely – white goods, brown goods and consumer electronics.
Air-conditioners, refrigerators, washing machines and other domestic appliances fall in the white goods’ category, while microwaves, chimneys, fans, irons, juicers, mixers and grinders fall in the category of brown goods. Television sets, audio and video players, personal computers, laptops, cell phones, digital cameras, camcorders and other electronic accessories fall in the category of consumer electronics.
Rising technological innovations and the decrease in import duty on flat panel LCDs/LEDs television sets in the budget is also likely to fuel demand in the industry.

Source :The Associated Chambers of Commerce and Industry in India

Consumer electronics & durables to reach Rs 52K crore by 2015: ASSOCHAM
Friday, April 27, 2012

URBAN INDIA CONSUMERS UPGRADE CONSUMER DURABLES

Consumers in Urban India are busy upgrading their TVs, Airconditioners and Washing Machines. . The last 7 months till July have shown a robust growth in these segments . This growth has been led by LCD TVs, Split Airconditioners and Fully Automatic Washing Machines. In a year of major sports action, high end TVs growth is expected to grow even more spilling over to rural India too.
The last seven months have also seen robust growth of entry level products in rural India. Industry leaders expect the growth in rural India in these entry products to be as high as 40% during the coming festive season. (Category Managers/Buyers in retail pl note and stock accordingly)
GROWTH THIS YEAR (7 months till July'10) :
Televisions
LCD TVS    :    70%        Overall   :  4.8%
Air Conditioners
Split ACs    :    58%         Window ACs   :   18.6%        Overall   :  41%
Refrigerators
Direct Cool :    14.7%      Frost Free     :    13.7%        Overall   :  14.5%
Washing Machines
Fully Automatic   :   16.5%     Overall  :  9.7%
(Source GfK-Nielson)
The overall outlook in consumer durables for the year 2010 is positive. Industry leaders expect TV sales to double in units this year besides a very healthy growth in refrigerators.

Exciting times ahead in this industry.

ECT250910

LG BETS BIG ON RURAL AND SEMI-URBAN INDIA

LG Electronics India, the South Korean consumer durables giant is heading towards rural India to ramp up it’s sales. It plans to increase deliverly centres and after sales service points. It also plans to introduce customized products in rural and semi urban markets to attract customers.

The company expects LCD (liquid-crystal display) televisions and mobile handsets to be its major sales drivers. At present, both products contribute close to 25 per cent to the company's sales. The figure is expected to double by 2015. On the company's strategy on mobile handsets, sources said that though handsets are available, lack of after-sale-service is driving away rural consumers from cheaper brands. LG India expects to earn a total revenue of Rs 19,000 crore during calendar year 2010 and has set a target to of $9 billion (Rs 41,400 crore) by 2015.
HT270610

New Solar Products for Rural Markets from Philips

The importance of rural markets for corporates is once again highlighted by the plans of Phillips India who are eying the huge and growing rural markets for their new set of products. Also an opportunity for retailiers in rural India to offer a new and utility product to their customers.

PHILIPS SET TO LAUNCH SOLAR PRODUCTS FOR RURAL INDIA
To cater to the rural markets of India, Philips Electronics India is set to launch a range of solar products specifically aimed at rural markets. These include solar and battery powered lanterns, rechargeable and fuel efficient wooden stoves and torches that run without a battery.
The upcoming products would be in the price range of Rs 1000 to Rs 2000. of which the first product would be a Rs 1000 priced solar lantern. This would hit the markets within a month. These would be followed by a range of wooden stoves based on reneable sources of energy.
Source : Hindustan Times – 21st March, 2009

Samsung and rural markets

Would like to reproduce information on Samsung contributed by Manoj and data on rural markets in India contributed by Manish.
Samsung Electronics :
Chennai, Feb 5 (IANS) Consumer durables major Samsung India Electronics Ltd,
which reported a turnover of $1.7 billion in 2008, is targeting 25 percent growth this year, a top official said here Thursday. 'We don't see any serious slowdown in our sales owing to the economic slowdown. We are confident of achieving our targets this year' with the government's measures stimulating demand and banks easing lending norms, Samsung deputy managing director R. Zutshi told reporters after launching a range of air conditioners. The company is also targeting to double exports to Rs.10 billion (Rs.1,000 crore) in 2009, he added.
'We will invest around $20 million in our Noida and Chennai plants in machinery and moulds,' Zutshi said. Towards achieving the aggressive targets, the company will double the number
of Samsung Plazas to 600 (all franchisee-owned) and increase the penetration of its products in higher number of multi brand showrooms across the country. Speaking about the air conditioner market, Zutshi said the industry sold around two million units last year and the expectation for the current calendar year is 2.4 million units. Samsung India is targeting to increase its air conditioner sales volumes by 200,000 to 600,000 units this year.
Contributed by Manoj
Rural Markets :
According to MART Rural, the rural market accounts for 53% of FMCG sales and 59% of consumer durables sales in the country. Televisions, 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.
Contributed by Manish

LG Electronic's Plans

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 "