The Indian economy is increasing day by day and so is the
demand of the people. In order to cater the needs of over 1.2 billion people
there has been a silent revolution in home appliances market. We Indians now
have higher purchasing power than ever before than ever before, all because of
the lower inflation and fuel prices. Internet connectivity has enabled us to
have better access to quality products at discounted prices. The current
consumer base is going to increase from 25 million to 50 million by 2018.
Refrigerators -
Refrigerators have the highest penetration in India of 31
percent with over 14 million units sales in the year of 2013. LG was leading
manufacturer of Refrigerators in the market accounting for 24.20 percent of
total sales while Samsung behind it with 20.60 percent of total sales. The
market share of direct cool and frost free segment is 76.3 per cent and 23.7
per cent respectively. Key growth drivers are lower prices and rising demand
for frost-free refrigerators.
Air conditioners -
Air conditioners accounts for penetration of 7 percent in
the year 2015 while it was 13 percent in the year of 2013. Total of 1.94
million AC units were sold in the year of 2015. High income growth and rising
demand for split ACs are the key growth drivers.
Washing Machines -
Washing Machines are the second largest contributor to the
consumer appliances market. In FY2013 total sales were around 7.5 million units.
. LG Electronics continue to be the market leader accounting for 25 % of the
total sales followed by Samsung Electronics with 23.2% in 2013 .6-9.9 kg is the
most popular category in India with 70% shares in total sales.
Microwave ovens -
Due to ease of operation and portability freestanding
microwaves continue to dominate the Indian market. LG Electronics continue to
be the market leader accounting for 32 % of the total sales followed by Samsung
Electronics with 22%.
Televisions -
Colour televisions are the largest contributors to this
segment with market size estimated at 23.0 million units in 2012. The price
decline due to relatively low import duty on LCD panels and the introduction of
small entry size models are key growth drivers in this segment.
Set-top boxes (STB)-
Due to the introduction of the conditional access system and
expansion of DTH the set-top box (STB) market is growing rapidly. Subscriber
base is expected to reach from 23 million during 2012 to 200 million by 2018
thereby making India the one of the world’s largest DTH market
According to an extensive
research done by Nexhop, the statics are greatly in favor of the home
appliances market. India has been the largest growing consumer electronics
market with 24 percent CAGR four times in a row. India will become the fifth
largest consumer durables market in the world by 2025. It is expected to grow
at CAGR of 14.8 percent from US$ 7.3 billion in Financial Year 2012 to US$12.5
billion in Financial Year 2015. Online retailing is anticipated to grow up to
8.08 billion industry by 2016. Following are the reasons that were critical for
the rise of the home appliances industry in India.
Revival of economy -
After the national
elections in May 2014 the consumer appliances industry improved significantly.
This happened due to subsequent boost to sentiments among Consumer appliances
companies and consumer alike. All categories of consumer appliances witnessed
significant growth both in terms of value and volume in and after 2014.
Growing demand -
Demand for consumer
appliances has increased tremendously due to the improving economy. With lower
inflation and rise in per capita income, people can now buy their desired
products more easily.
Investments -
Giant manufacturers like
LG, Samsung etc. have invested significantly in India for setting up
manufacturing and sales unit. Global recession was also not able to stop
investors to pour money into the Indian economy.
Make in India campaign -
The new government has emphasized
a lot on domestic manufacturing. Through the Make in India initiative India’s
Prime minister has invited leading companies from all over the world to set up
their manufacturing bases in the country.
Ecommerce -
Online sales have
resulted in huge market growth. Online sellers have been very successful in
wooing customers through competitive pricing and huge discounts. This could not
have been possible without the increase in Internet connectivity all over
India. In order to tackle ecommerce giants like Flipkart, Amazon, Snapdeal,
Shopclues, etc. leading consumer appliances companies and other large retailers
have opened online stores to target online shoppers.
With improving economy,
more disposable income and promotions from retailers and companies a bright
future is expected for consumer appliances industry in India. It is expected to
witness growth in both terms of value and volume. Internet retailing and
electronics and appliance specialist retailers will boost the consumer
appliances market to grow. If you have any questions regarding to home appliances don't hesitate to call us.
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