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Challenges
Challenges Facing the Consumer Electronics Industry

With the increase in price wars due to the entry of new players in the market and increase in manufacturing capacity by some original manufacturers, the profitability and margins of the
companies are adversely affected. Poor distribution network in semi-urban and rural areas. Low awareness of consumer electronics products in rural India. Presence of gray market in consumer electronics products, especially in DVD player, music players. Companies need to increase focus on product differentiation to address various segmental specific needs.
With the increase in access to Internet information, and availability of wide range of choices, consumers have become quite smart. They want the product that is easy-to-handle, good in quality
and low in price. Most importantly, consumers want some guarantee for the product that they are buying. They look for the product that can be used for many years. The role of electronic companies doesn't end on the sale of the product, but continues till the end of guarantee period.