The consumer durables industry is broken down into two different segments: consumer electronics and consumer appliances. Although these products are sold globally, the classification of consumer durables is generally restricted to sales and manufacturing activities which occur in India.
Consumer electronics are also classified as “brown goods.” Consumer appliances are sometimes listed as “white goods.” Televisions, laptops, digital cameras, and certain electronic accessories are sometimes classified into their own category of consumer electronics.
Within the Indian economy, about 67% of the consumer durables which are sold every year occur in the country’s urban markets. Some of the most popular products sold by the industry are televisions, air conditioners, and electric fans. Refrigerators and washing machines are popular items for the industry as well.
By 2025, the consumer durables industry in India is expected to be the fifth-largest market of its type in the world.
Important Consumer Durables Industry Statistics
#1. In 2017, the consumer durables industry was expected to reach $10.19 billion in revenues from the sales of televisions in India. At its current CAGR of 9.8%, India is home to the world’s third-largest television industry. (India Brand Equity Foundation)
#2. Through 2020, the electronics market in India is expected to grow at 41%. In 2017, the industry reached Rs 1 trillion in value for the first time, which equates to $15.5 billion. (India Brand Equity Foundation)
#3. The appliance and consumer electronics market reached a total value of $31.48 billion in 2017. Exports from India from this industry account for $362.12 million in value for the 2017 fiscal year. (India Brand Equity Foundation)
#4. The rural and suburban markets for the consumer durables industry is growing at a 25% CAGR. In future years, it is expected that the rural and suburban consumers will share a 50/50 split of industry revenues with urban consumers. (Fintapp)
#5. In the white goods market, washing machines contribute a 40% share of the revenues for the industry segment. Air conditioners contribute 32% of the revenues, while refrigerators are responsible for the remainder. (Fintapp)
#6. Consumer penetration levels of white goods in India are up to 7 times lower that rates found in the rest of the world. Refrigerators have the highest market penetration rate for the industry at just 20%. The white goods market for India is just 9% of what it is for China. (Fintapp)
#7. In rural Indian markets, refrigerators and washing machines may have a market penetration rate of only 0.5%. (Fintapp)
#8. Semi-automatic washing machines account for 70% of the revenues generated in the category. (Fintapp)
#9. Urban areas account for 75% of the refrigerator sales that are generated each year by the industry. Frost-free refrigerators in the 240- to 270-liter range generate the most sales for the industry each year. (Fintapp)
#10. For air conditioner sales, split A/C models are 87% of the products sold within the category. Northern India leads the consumer durables industry with air conditioner sales, contributing 38% of total revenues. (Fintapp)
#11. Voltas is the brand with the largest market share in India, with a health 22% of sales. They are followed by LG at 16%, Daikin and Hitachi at 13%, and Lloyd Electric at 13%. Both Voltas and Lloyd Electric have over 10,000 dealers actively selling products to consumers within the industry. (Fintapp)
#12. Manufacturers of air conditioners spend as little as 1% of their sales on advertising expenditures. (Fintapp)
#13. The 5 largest companies within the brown goods segment of the consumer durables industry account for 45% of the revenues generated. (India Brand Equity Foundation)
#14. Under the automatic route, 100% foreign direct investment is allowed within the industry. Allowing 51% in multi-brand segments would fuel growth within the industry to an estimated $20.6 billion in value each year. (India Brand Equity Foundation)
#15. India is currently fourth in the world when it comes to the sale of annual smartphone revenues. (India Brand Equity Foundation)
#16. The 50 largest cities in India showed growth levels within the consumer durables industry that was equal to, or higher, than the GDP of the country in 2016. (India Brand Equity Foundation)
#17. In 2015, the market for flat-panel display televisions within India was expected to reach $6.4 billion. About 14.4 million units are purchased within this category each year. (India Brand Equity Foundation)
#18. DVDs (digital video discs) still account for 80% of market revenues in the entertainment category for the industry. Direct-to-home opportunities make up just 7% of the total industry right now, with a total subscriber base of about 88 million people. (India Brand Equity Foundation)
#19. Even with its high levels of penetration, branded electric fans contribution about $830 million in total value to the industry. To improve revenues, the Indian government offers $64 million in incentives to manufacturers to promote the sale of energy-efficient fans. (India Brand Equity Foundation)
#20. In the organized retail sector, which accounts for 98% of total sales in India each year, consumer durables represent 12% of all retail sales that occur each year. That ranks third, behind food, grocery, and general needs (42%) and clothes, textiles, or fashion (16%). (India Brand Equity Foundation)
Consumer Durables Industry Trends and Analysis
Consumer durables is an industry which gathers strength in good economic times to become resilient during times of economic difficulty. In India, as Middle Class wages begin to rise, high levels of growth are expected of the industry. Over the next 5-year forecast, the industry is expected to nearly double the number of revenues generated in the past year.
This push for growth stems from a government effort to create housing opportunities for everyone. Getting more people into manageable households for independent living will help the industry create more products, expand product lines, and generate new revenues.
The highest levels of growth expected in the market will come from the goods that have a finite service life. Lights, fans, cables, and air coolers are all expected to see double-digit CAGR growth over the next 5-year forecast.
Consumer durables is one of the strongest markets in India right now and it should continue to be for some time to come.