ANALYSIS OF CONSUMER DURABLES FUTURE TREND PORTERS FIVE FORCES PEST ANALYSIS OF CONSUMER DURABLES SECTOR

1. PRESENTATIONON CONSUMERDURABLES
PRESENTED BY:
RINSHI SINGH
SHEFFALI JAIN
BORNALI BRAHMA

2. CONSUMER DURABLES
 Consumer durables are the products whose life expectancy is at
least 3 years. These products are hard goods that cannot be used
up at once.
 According to recent industry reports, the steadily growing market
for consumer durables is estimated at Rs. 300 billion.

3. TOP PLAYERS IN DIFFERENT SEGEMNTS
CONSUMER DURABLES CONSUMER
ELECTRONICS
OTHER
BROWN
GOODS
WHITE
GOODS
VIDEOCON TITAN
TTK
PRESTIGE
BLUE STAR MRC ELECTRONICS
HAWKINS WHIRLPOOL
BAJAJ
ELECTRONI
VOLTAS
Consumer
Durables
Consumer
Appliances
Brown
Goods
White
Goods
Other like
Watches,
jewelry
Consumer
Electronics
Mobile
Phones, TV
etc.

4. CONSUMER DURABLES
35%
65%
Market Share
Rural Area
Urban Area
Consumer Durables Pie

5. Competitive
Rivalry:
High
Availability
of
Substitutes:
low to
medium
Buyer
Power:
High
Threat of
New
Entrant:
Medium
Supplier
Power:
Low

6. Threat of New Entrants
 Most current players are global players.
 New entrants will need to invest in brand
,technology and distribution
 Highly capital intensive
 Brand loyalty is moderate.

7. Bargaining Power of Buyer’s
 Buyers switching cost is very less
 Use of internet to get all the information
enables customers to be powerful
 Multiple of brands across price points –wide
variety of choice for customers.

8. SUPPLIER’S POWER
 Indigenous and supply base limited-most raw
materials are imported.
 Product differentiation is very low
 By changing the input firms cannot drastically
differentiate on price

9. Competitive Rivalry
 Number of well established players with new
players entering.
 Good technological capability
 Many untapped potential market
 Continuous innovation leads to intense rivalry
 Homogeneity in product and low switching
cost

10. THREAT OF SUBSTITUTE
 Unbranded products and cheaper imports could enter
the market.
 Technology advancements
 Buyers have huge propensity to substitute.

11. PEST ANALYSIS OF FMCD SECTOR

12. POLITICAL FACTORS
 Big organized shops like Aditya Birla & Reliance India
groups are in to consumer durable goods market. Strong
lobbying was done to protect the investment of
unorganized retail shop. The purpose of different political
parties was to increase their vote banks.
 The permissible entry of the FDI‟s was only single brand
outlets.
 Restrictions were imposed on the entry on new organized
shops.

13. ECONOMIC FACTORS
 Bulk of the total profit will be showed by top three
organized retail players.
 A shift in the consumption pattern of durable goods was
observed. It was the main course of increase in the
exponential growths.
 Consumer durable industry as a whole suffering from
the commoditization of the durable products and
services.

14. SOCIAL FACTORS
 Consumers of durable goods feel the gravity and have
ready to ask companies about their contribution to the
nation as well as society in terms of their environmental
friendly approach.
 Consumers of durable goods industry want big retailer
to look after the well being of the nation.
 Durable goods consumers are now ready to shell, extra
price for their money baskets for the environmental
friendly household durable goods.

15. TECHNOLOGY FACTORS
 Enhancement of consumers experience and revenue drive by
managing all types of costs and improvement in operational
efficiency are the major challenges in the retail sector of
consumer durable industry. To meet all these challenges durable
goods industry is heavily relying on information technology
sector.
 Big players of this sector have already increased their budget on
Information Technology spending by almost 25 percent in year 2010.
 Software are the most important tool to improve operational
efficiency in this industry.

16. Consumer Durables-Forecast &
Growth Trends
0
5,000
10,000
15,000
20,000
25,000
30,000
2011 2012 2013 2014 2015 2016
Forecast Sales Volume of Major
Appliances in 000, Units
Sales
0
5,000
10,000
15,000
20,000
25,000
30,000
2011 2012 2013 2014 2015 2016
Forecast Revenue of Major
Appliances INR Cr.
Revenue

17. Consumer Durables-Market
Share of Major Players
25.90% 23.60% 22.80% 24.98% 25%
14.70% 16.20% 18.60%
19.30% 21.10%
17.30% 17.10% 16%
17.10%
17.90%
10.40% 11.40% 12.20%
11.60%
11.50%
10.70% 10.60% 10.10%
9.70%
9.30%
21% 21.10% 20.30% 17.40% 15.20%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
2012 2013 2014 2015 2016
OTHERS
VIDEOCON
GOODREJ
WHIRLPOOL
SAMSUNG INDIA
LG INDIA

18. Key Growth Drivers
 Rise in disposable income
 Availability of new & innovative products
 Pricing of the products
 Rise in the share of organized retail.
 Innovative advertising & brand promotion
 Festive season sales

19. Future Trends
 Expansion into new segments
 Increased affordability of products
 Focus on energy efficient and environment-
friendly products
 Growing luxury market
 Powerful competitive strategy
 Occasion based marketing