BANGALORE, August 31, 2016 /PRNewswire/ --
Mr. Naresh Kumar (CEO) - EWEL says the market for white goods has been growing at close to 14% p.a and it is expected to grow at 17% in the coming years. Consumer electronics is expected to be US$29 billion market by 2020 from US$10 billion, currently. Also, the Indian consumer durables market has traditionally been a high spend priority sector and major Indian and global consumer durable companies have announced investment of around US$1.4 billion over the coming years in India.
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Overview of Consumer Durable Industry:
India is expected to become the fifth largest consumer durables market in the world by 2025. The consumer electronics market is expected to increase to US$ 400 billion by 2020. The production is expected to reach US$ 104 billion by 2016. The sector is expected to double at 14.7 percent compound annual growth rate (CAGR) to US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10. Urban markets account for the major share (65 percent) of total revenues in the consumer durables sector in the country. Demand in urban markets is expected to increase for non-essential products such as LED TVs, laptops, split ACs, beauty and wellness products. In rural markets, durables like refrigerators as well as consumer electronic goods are likely to witness growing demand in the coming years as the government plans to invest significantly in rural electrification. The Government of India has increased liberalization which has favored Foreign Direct Investments (FDI). Also, a policy such as National Electronics Mission and digitization of television and setting up of Electronic Hardware Technology Parks (EHTPs) is expected to boost the growth of this sector. The consumer durables market is anticipated to expand at a CAGR of 14.8 percent to US$ 12.5 billion in FY15. Also, the demand from rural and semi-urban areas is projected to expand at a CAGR of 25 percent to US$ 6.4 billion in FY15, with rural and semi-urban markets likely to contribute majorly to consumer durables sales.
Consumer durables revenues have been growing at a healthy pace:
Domestic Electrical Appliances:
Brown goods or domestic kitchen appliances are indicators of the changing consumer scenario in post-liberalization economic environment. The major products constituting the brown goods market are mixers, grinders, irons, microwave ovens, rice cookers, water heaters or geysers, electric fans and exhausts.
The branded brown goods market has expanded at a significant pace and is expected to retain the momentum into the future as well. The market has been transformed by the entry of over a dozen new brands. Moreover, competition has intensified. While focus on price competency remains a key priority, players have also started focusing on other product features such as safety and total cost of ownership of the device.
Goods like the rice cooker have been growing continuously at a slow and steady manner over a significant period of time while microwave ovens have grown exponentially after the initial period of customisation to local requirements.
The electrical iron market can be divided into two segments: heavy and lightweight. The market is also segmented into two sub-segments: steam and non-steam irons.
India being a tropical country, electric fans are an essential utility for more than six months of the year in most parts of the country. The present market size is estimated at around 11.6 million pieces. The market is divided among ceiling, pedestal, wall and table fans. Industrial and exhaust fans are another important segment.
The electrical appliances industry, which was focusing on the urban market, is now reaching out to semi-urban and rural markets as well. This is because of the shift in living style of the population, increasing electrification of villages and relatively higher purchasing power of consumers. As the market penetrates into the core middle-class segment in both urban and rural areas, it is expected to expand phenomenally, offering large volumes to the industry.
The Indian consumer durables market has traditionally been a 'high spend', priority sector.
However, future spurt growth will come from the rural markets (69% rural population).
Consumer Durables:
Consumer appliances Consumer electronics
Air Conditioners (AC) Electric Fans Audio and Video systems
Refrigerators Electronics accessories
Washing Machines CD and DVD players
Sewing machines Digital cameras
Cleaning equipment Camcorders
Microwave ovens
Other domestic appliances
Product Technology:
While the market is continuously expanding, there are several concerns that need to be addressed while moving the focus towards tier III towns and rural areas. Total cost of ownership would be a key factor that would drive purchase in these regions. From an organised industry's perspective, success would be determined by superiority of product technology, which could provide added benefits to the customer. For example; low power consumption, low service requirement and low cost of operation.
Conclusion:
The consumer durables industry in India is set for sustained growth over the long term, fuelled by favorable consumer demographics, overall growth in services and industrial sectors and infrastructure development in suburban and rural areas. Several Indian and MNC players are looking to strengthen their presence in India to leverage this opportunity.
Success in the long-term will require RMS to develop a wide and robust distribution network, differentiate their products in areas of relevance to the consumer and innovate in the areas of promotion, product financing etc. The product and approach to market needs to be customized to suit the unique needs of the Indian market.
About EWEL:
This is an acronym for the Electrical Technology Engineering Well. The word well is derived from 'Wella' which means origination of a watercourse. EWEL has headquartered in Silicon Valley of India (Bangalore) which owns a global presence in the world of technology and engineering. From the day of establishment 'ETEWELL TECHNOLOGY (INDIA) PRIVATE LTD' has been growing as an innovative company maintaining originality and inventiveness. We have always given the highest priority to the evolution of new products and integration of advanced engineering and technology. The company has established a wide range of innovative products in all major categories of white goods and many other engineering products. We have one of the world's most efficient service innovations which seamlessly integrates all the service process function for an enhanced consumer delight through simplifying the routine. With decades of experience in practical applications, EWEL has developed some integrated quality and power optimization solutions in electrical environment and load arrangements' optimization; offering power capacity matching advices, customization and highly efficient products. Technology Transformation; EWEL - A well-known name in the engineering community has a profound affinity towards research, innovation and invention. The group was by founded by young, dynamic professionals with the sole vision to 'reinvent' the technology for contemporary lifestyle and to provide world class business synergy under one umbrella. EWEL comprises multiple verticals pertaining to household products, multi core flexible cables, uninterrupted power supply(UPS), cutting tools and machinery etc. In conclusion, our approach is to provide world class solutions and bring smiles across all spheres of life wherever EWEL is commissioned.
For more information, visit: http://www.ewel.in/
Media Contact:
Sai Jyothsna
[email protected]
+91-9945466676
CEO, Elkay PR
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