Home » Career Builder»SWOT Analysis- Indian Consumer Durables Industry
October 24, 2012

SWOT Analysis- Indian Consumer Durables Industry

Introduction


All of us aspire for better lives and lifestyles. With increasing mechanization and growing incomes, our inclination towards possessing various consumer durable goods is on the rise.


India, a rapidly developing nation, has opened its market to globalization which has resulted in overall growth for the average citizen. He not only has more opportunities of income but has access to a market that offers him a myriad of choices, excellent after sale services, low maintenance and much more. Apple, Hitachi, Porsche, TAG Heuer have become common names for us.


The consumer durable goods are also designed to suit our own fast paced lives – we now have microwaves in most kitchens to cook, bake and heat our food, frost free refrigerators, intelligent air-conditioners that adjust temperatures depending on occupancy, etc.


Strengths


As is evident, the consumer durable industry in India is on a steeply rising curve. Till about two and a half decades ago, people were satisfied with whatever was available – can you recall items such as black and white televisions or bulky tape recorders?


Globalization has brought about a paradigm shift in the way we think and revolutionized our lives. International players have found a hungry market in India – the consumer durables industry has experienced a boom like never before. Foreign Direct Investment (FDI) has made it possible to manufacture the goods in India with the technology from abroad; thus avoiding heavy custom duties and formalities, and keeping the prices within affordable ranges. Tie ups with financial institutions have brought in the idea of Easy Monthly Instalments (EMI) schemes – People with moderate income levels can now aspire for high end life style products without it being too heavy on his pocket.


Weaknesses


On the face, one may think that there are absolutely no loopholes in this industry. Indeed there are some grey areas - but the good news is that perhaps it is possible to overcome them to a fair extent. For example, when a foreign player wants to set up its own manufacturing duties, the Indian laws may take them in circles before even a scratch is realized on the ground. Also, in some cases, it becomes difficult to provide complete after sale support to the customer.


Opportunities


Rising demands, flexible investment options, incentives from the Government – the time is ripe for the consumer durable industry. A strong opportunity for foreign players is to employ Indians as their local staff, who can overcome language and cultural barriers and connect with the masses better. This is also an opportunity for talented and well educated youth for being associated with multinational companies and earning handsome packages.


Threat


Stiff competition from multiple brands for a single product has kept every player on his toes. In India, word of mouth spreads travels faster than light – so a single dent in the image may cost a brand dearly. Even today, we buy products that assure us good service and not ones that make you wait for months because a spare part is in transit from a faraway land!




Tags : SWOT analysis of Consumer Durables industry in India

About Anupama

I am an Architect and a blogger. I have been blogging for about six years now; and have got into professional content writing for the last two years.