GROUP NO.

08
DIV. B
Swayam Siddhi College Of
Management & Research
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Consumer Durable Market
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GROUP MEMBERS
NAMES:

Ansari Huma
Aaves Qureshi
Abu Talha
Shailesh Uttarwar
Prashant Sharma
Sandeep
Parmeshwar
Roll No. :

10095
10104
10110
10077
10086
10068
10113

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Introduction
Durable goods

Non durable goods

Consumer durable goods
4 5/4/2014 Consumer Durable Market
Indian Consumer durable Industry
5
Consumer Electronics Consumer /Home Appliances
Mobile Phones

Televisions

Computer

DVD players

Major appliances

Refrigerators

Washing Machines

Air-conditioners

Smaller appliances

Mixers

Grinders

Irons

Cooking Range
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6
Consumer Electronics
Major Appliances
7
Smaller Appliances
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Several key trends are driving
growth in the sector
Income growth of consumers.

Availability of financing.

Increasing services to consumers.

Entry of heavyweight retail players.


Some of the attractive areas for investment
High End Colour TVs

Split Air-conditioners

Mobile Phones

Distribution and Retail
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Attractive States for Investment

Maharashtra

Uttar Pradesh and

Tamil Nadu

are attractive locations for investment in
manufacturing consumer durables.
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Electronic App. Consumption
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Market Share of Consumer Goods
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Future Scenario
Easy availability of finance.
Emergence of double-income families.
Fall in prices due to increased competition.
Government support.
Growth of media .
Improvements in technology.
Reduction in customs duty.
Growth in consumer base of rural sector.

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Several global players are well established in
the Consumer Durables sector
in India, with competition from strong Indian
players
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Some of the key players in the sector
in India

Samsung

Philips

LG

Whirlpool

Nokia

Sony
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Japanese consumer durables co.

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Indian consumer durables co.
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Growth of Consumer Durable Market
The Consumer durables recorded a growth of 31 per cent in
October 2010.
According to the Consumer Electronics and Appliances
Manufacturers Association (CEAMA), the consumer durables
and electronics sector has registered a 12-13 per cent growth in
2010.
The consumer durable market in rural India recorded a growth
of 30 per cent in 2010-2011.

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Challenges faced by Consumer Durable
Market
Lack of well developed distribution networks makes it
challenging to penetrate the fastest growing rural areas.
Customers have increasing choice from domestically produced
and imported goods.
MNCs hold an edge over their Indian counterparts in terms of
technology combined with a steady flow of capital.
Low affordability level of consumer products among the rural
masses.
Heavy Taxation.

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Case Study of LG Electronics:
Repositioning a Successful Brand
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The consumer durables
market in India was largely
characterized by

restricted product choice,
very poor after-sales
service, and
distribution through limited
multi-brand outlets.
The other area which they felt
required urgent attention
A service network which would not only
ensure customer satisfaction,
convenience, good word-of-mouth, and
a favourable disposition towards repeat
purchase, but could also
become an additional source of revenue
for the company.
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Changing profile of Indian consumer
durables market

Though LG and Samsung were initially
perceived as similar in their strategic
approach
LG realized that a sizeable chunk of
consumers over the years had moved up
the value chain a space well captured by
rival brands.
This shows up in the fact that LG is
trailing Samsung in the LCD television
market.

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The Right Match
The average age of the LG consumer is
above 30.
The brand has low appeal among youth.
LGs recent products like the Jazz LCD TV
sets and Chocolate mobile phones
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For You.
LG wishes to associate brand
ambassadors with their communications
campaigns for their mobile phones.
Suggest a suitable profile for youth-
oriented brand ambassadors in terms of
occupation, age group and gender.

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