Slowdown in consumer appliances continues in 2013
The slowdown in consumer appliances, which started in 2011, continued in 2013. This affected the market at several levels. Consumers continued to postpone purchases, compounding problems for manufacturers. High commercial rents made it tough for retailers in cities where demand was already hard to come by. Moreover, rising raw material prices left no option for manufacturers but to increase prices further, thus slowing demand.
Small appliances continue to witness bundling to make products more attractive to consumers
Several retailers continued to bundle two or more small appliances together and sell them as a discounted package. This pushed the sales of small appliances. However, on the flip side, consumers became used to discounts. For instance, many consumers preferred to buy an iron only when it was bundled with another product. This made it necessary for retailers to think of products which could piggyback sales of irons.
Multinational companies focus on India as a manufacturing hub
Multinational companies continued to focus on India as a manufacturing hub for consumer appliances. This was positive news, particularly because India is mostly perceived as a services hub. Panasonic Home Appliances India Co Ltd opened a factory in Jhajjar in Haryana in December 2012. Moreover, Panasonic aggressively expanded its retail footprint. LG and Samsung were already manufacturing most of their consumer appliances in India.
Modern retailers offer attractive schemes like equated monthly instalments to attract consumers
Modern retail stores like Croma offered attractive financing options to buyers of consumer appliances. Under such schemes, consumers could buy an appliance by taking out a loan and repaying that loan in small equated monthly instalments (EMIs) of as low as Rs1,000. Such schemes helped salaried consumers as they often find it difficult to buy products on full down payments. It also helped push volume sales of products at a time of low consumer confidence.
Improving demographics continue to offer an opportunity to more sophisticated products
The continued population shift from small towns to cities resulted in shrinking living spaces, making it necessary for people to buy small appliances like hobs (induction cooker), hand-held blenders, food processors etc. Moreover, this population shift also resulted in higher per capita incomes, in turn leading to an increase in demand for more sophisticated products like 3-door and 4-door fridge freezers and front-loading washing machines. Such products were in demand from consumers with high disposable incomes in cities like New Delhi, Mumbai and Bangalore.
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The Consumer Appliances in India market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
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- What are the major brands in India?
- How was category performance been affected by current economic climate?
- How is penetration for consumer appliances going to develop over the medium term?
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This industry report originates from Passport, our Consumer Appliances market research database.