Professional Documents
Culture Documents
Consumer Durables Industry in India
Consumer Durables Industry in India
Ahsan Dileep
~15% CAGR growth over next five years. We believe that the consumer durables industrys growth has been two pronged : (a) driven by lower penetration in rural markets (b) new innovations and replacement demand in urban markets penetration in rural markets . (c) new innovations and replacement demand in urban markets.
Industry Overview
It is a $5billion industry
Consumer electronics. Competitive landscape: dominated by Korean majors like LG and Samsung in most of the segments Margin Profile: Low margin, dependant on volumes Growth opportunities: Lower penetration coupled with increasing disposable income Segmentation of consumer durables industry TVs, Refrigerators and air conditioners constitute more than 60% of the market
Top 10 Companies
Nokia
LG Electronics
Philips Titan
Samsung
Whirlpool Siemens Sony Videocon Bluestar
PROFILE OF INDUSTRY
VIDEOCON INDUSTRIES REFRIGERATOR,WASHING MACHINES,T.V.,A.C, MICRO WAVE GODREJ WHIRLPOOL OF INDIA MIRC ELECTRONICS PANASONIC VOLTAS BPL LIMITED ELECTROLUX SAMSUNG HOOVER LG ELECTRONICS EUREKA FORBES SONY BLUESTAR BAJAJ ELECTRONICS REFRIGERATOR, AIR CONDITIONER REFRIGERATOR, WASHING MACHINES TELEVISION TELEVISION REFRIGERATOR, WASHING MACHINES REFRIGERATOR, TELEVISION VACCUM CLEANER, REFRIGERATOR VACCUM CLANER, REFRIGERATOR, T.V, MOBILE PHONES VACCUM CLEANER WASHING MACHINES,REFRIGERATOR.T.V.,MOBILE PHONES VACCUM CLEANER TELEVISION, MOBILE PHONES, DVD PLAYER AIR CONDITIONER GEYSERS, ELECTRIC FANS
NOKIA
MOBILE PHONES
Manufacturing Edge
Market Positioning and Branding
Driving Force
Income growth
Split ACs
Mobile phones
Operations
Outbound Logistics Marketing and Sales Service
Nokia
Finnish multinational communications
company Founder Fredrick Idestam Founded in the year 1865 at Tampere, Finland
Products
Mobile Phones
Smart Phones
Nokia 1100 handset is the worlds top selling consumer electronics product
Strengths: Large distribution network Wide product range Weakness: Pricing Products not user friendly
LG Electronics
Worlds second largest manufacturer of TV
sets Established in 1958 as Goldstar LG was a merger of 2 Korean companies Lucky and Goldstar HQ Seoul, South Korea Worldwide sales of $12.4b in second quarter of 2010 Turnover of Rs13089 crores in India in 2009 Eyes turnover of Rs15000 crores in 2010
Products
TVs
DVD Players
Refrigerators Washing Machines ACs Mobiles
Awards
CNBC Awaaz Consumer Award for Most
Preferred Brand Consumer Electronics and Home Appliances(2008) 4Ps Award for Most Admired MNC in India
Philips
Founded in 1891
Products
Lighting Devices
Medical Systems
Domestic Appliances
Samsung
Worlds largest electronics company
Products
TVs
Refrigerators
Mobile Phones
Whirlpool
Fortune 500 company
Established 1911
HQ Benton Charter Township, Michigan,
USA Annual sales of $20billion in 2009 Entered Indian market late 1980 JV with TVS Group Annual turnover Rs1719 crores
Awards
Voted Product of the year in 2009
Refrigerator category
Siemens
Founded in Berlin in 1847
Products
Hearing Instruments
Home Appliances
Sony
Japanese multinational conglomerate
Videocon
Indian industrial conglomerate
Products
TV
Refrigerator
Washing machine UPS / Inverter In 2009 Videocon introduced TVs with built-in
BlueStar
Indias largest central air conditioning
company Founded 1943 by Mohan T Advani Annual turnover Rs 2574 crores Market leader Commercial refrigeration equipment
Products
AC
Refrigerator
Water Cooler
Panasonic
Formerly known as Matsushita Electric Co.
Ltd Founded 1918 by Konosuke Matsushita HQ Kadoma, Osaka, Japan Net sales of $79.4 billion, for the year ended march 2010
Awards
Awarded SS IS01 4001:2004 for
Environmental Excellence
Strengths
Strong brand equity
OPPORTUNITIES
purchasing power of people with higher propensity to consume with preference for sophisticated brands would provide constant impetus to growth of white goods industry segment.
CHALLENGES
Heavy taxation in the country is one of the challenges
for the players. At its present structure the total tax incidence in India even now stands at around 25-30 per cent, whereas the corresponding tariffs in other Asian countries are between 7 and 17 per cent.
Poor infrastructure
It is another reason that seems to have held back the industry. Regular power supply is imperative for any consumer electronics product. But that remains a major hiccup in India.