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Scope

Overview

With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased

significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer considered luxury items. However, there are still very few players in categories like vacuum cleaners, and dishwashers.

Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the

consumers, whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low

in India. An important factor behind low penetration is poor government spending on infrastructure. For example, the government spending is very less on electrification programs in rural areas. This factor discourages the consumer durables companies to market their products in rural areas.

     -Introduction
     -Sector Outlook
     -SWOT Analysis
     -Classification

Some Facts
1. Bargaining power of suppliers in consumer durables sector is limited due to threat of imports and intense competition.
2. Some of the entry barriers in consumer durables sector are distribution network, capital, and ability to hire purchases.
3. Demand is seasonal and cyclical.
4. Competition among players is on the basis of difference in prices and well-acknowledged brands.