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Indian Industry

Consumer Electronics

Overview
The consumer electronics market is valued at $25 billion in 2006 and is growing at a rate of 20% per annum.
Products Covered
The consumer electronic sector can be segmented into VCD/DVD, home theatre, music players, and color televisions (CTVs), MP3, digital cameras, laptop etc. and white goods, such as, dish washers, air conditioners, water heaters, washing machines, refrigerators, etc.

Major Players
Before economic liberalization, there were only a few players like Kelvinator, Godrej, Allwyn, and Voltas in the consumer durable market. 90% of the market was captured by these companies alone.
Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo and Aiwa came into the picture. And today, these players control major share of the consumer durable market.

Consumer electronics market is projected as shown in the graph



Growth in 2005-06

Consumer Durable/ White Goods Growth
Air Conditioner 20-25%
Refrigerator 5-10%
Microwave Ovens 25%
Washing Machines 5-10%
Consumer Electronics (Overall) 9%


Growth Drivers
Electronic market is growing very fast because rising living standards of individuals, easy access to consumer finance, growing consumerism, increase in disposable income, and large variety of choice as many foreign players are entering in the market. But, sometimes due to the presence of large number of players in the consumer electronics market, over-supply situation arises.


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