The Indian Consumer Durable Market

What is the key to growth?..

The consumer durables industry seems to have weathered the economic slowdown better than other sectors. Both manufacturers and retailers have recorded double-digit growth, with the recent cut in excise duty giving the sector a further boost.

India's 24,000 crore rupee consumer durables industry has experienced a turbulent phase in 08’. A sharp rise in commodity prices, double digit inflation, tougher credit requirements, and consumers postponing big-ticket purchases made for some tough times.

The road in 2009 seems to be uncertain but the recent fall in interest rates and excise duty cuts seem to have turned things around.

Consumer durables are sought after more for their inherent advantages and salient and features-rich technology to enhance the comforts of a family. Often high-end products are seen as a style statement by the peer conscious society.

The current economic slowdown and the resultant spending habits of the consumers have marginal impact on lifestyle and purchase of gadgets for comfort, especially among the salaried and middle income groups.

The 24,000 crore retail market in the country has also thrown open a plethora of opportunities and untapped market potential for the organized retail in consumer durable market.

The Road Ahead:

Consumer durable retailing, one of the largest sectors in the global economy, is going through a transition phase not only in India but the world over. For a long time, the corner electronics store was the only choice available to the consumer, especially in the urban areas.

This is slowly giving way to international formats of retailing. The road map for the consumer durable retailing seems to be bright ahead. The need of the hour though is to focus on the strategies to make the most out of this opportunity.

One really continues to be bewildered as to what are the key trends that are driving growth in the sector??