Custom Search

Wednesday, March 23, 2011

DURABLE GOODS INDUSTRY

DURABLE GOODS INDUSTRY:
The consumer durable segment can be segregated into consumer electronics (T.Vs VCD player and Audio system etc) and consumer appliances (also know as white goods) like refrigerators, washing machine, ACs (Air conditionery) Microware ovens, vaccum cleaners and dishwashers.

Over the years demand for consumer durable ahs increased with rising income levels, double has increased with rising income levels, double-income families, changing life styles, availability of credit, increasing consumer awareness and introduction of new module. Products like Air conditioners are no longer perceived as luxury products.

Most of the segments in this sector are characterized by intense competition emergence of new companies (especially MNC’s) introduction of stage-of-The art models. Price documents and exchange schemes. MNC’s continue to dominate. The Indian consumer durable segment, which is apparent from the fact that these companies command more than 56% market share in the colour television segment.

The biggest attraction for MNCs is the growing Indian middle class this market is characterized with low penetration levels MNCs hold an edge over their Indian counterparts in terms of superior technology combined with a steady flour of capital while domestic companies complete on the basis of their well acknowledged brands, an extensive distribution network and insight in local market conditions.

One of the critical factors those influences durable demand is the Govt. spending on infrastructures especially the rural electrification programes have always logged behind schedule. This has not fovoured durable companies till now any incremental spending in infrastructure electrification programes could spur growth of the industry.

While colour televisions and refrigerator have been around for many years washing machines, Microwave ovens, ACs and vacuum cleaners are beginning to make their presence felt in Indian house hold.

In recent years India is while goods industry has adopted enormous growth but per reports washing machine industry has been decrease 2% to 4%. In this year washing machine industry expecting 7% growth.

Washing Machine Industry:
The total domestic demand for washing machines was around 0.98 million units in 1997 – 9 as against a reported capacity of more than 2.17 million units per annum. The demand in 1996 -97 was 0.89 million units up from 0.69 million units in 1995-96. The demand for washing machine grew at a GAGR of 10% in the period 1993-99. A demand growth of 11% has been reported in the period between January –June 1998 over the corresponding period in the previous year. This growth rate appears to be sustainable over the medium term.

Semi automatic washing machines accounted for more than 80% of the total demand with the just being accounted for by fully automatic machines in 1997-98. This is primarily because of the price advantage of around 50% which semi-automatic machines have over fully automatic machines. Also the consumption of water and power is lower in the case of semi-automatic machine. WIL is the third player in the semi-automatic category with around 17% market share – automatic category with around 17% market share. IFB the market leader with 27.5% market share in fully automatic segment. WIL which currently is third in terms of the overall market share, has an established brand image. However, it compares poorly in term of dealer network

Washing Machine:
Washing machines in India are divided into two broud segments-semi automatic machines form around 75-80% of total washing machines market. The fully automatic machines was not very popular mainly is the earlier years due to the high price differential between the two. In addition to this just as we save above the washing machine per se. is not popular as a television or a refrigerator. Thus most of the buyers have Preferred to make smaller in this product category. However, with the washing machine becoming a widely accepted consumer durable and the price of the fully automatic machines in slowly picking up. Morver, the replacement buyers who already have a semi-automatic washing machine are the ones who prefer the fully automatic washing machine.

72% of the dealers interviewed, witnessed on increasing preference towards fully automatic washing machine. It is established that by 2005 the share of fully automatic machines will be 70%.

There are two models of washing machines front loading and top loading. Top loading convenience and safety. Front loading model has not picked up at all in India. In the survey conducted, all the respondents cited top loading as the preferred model.

This industry come into existence in 1900’s pure Indian washing machine company is TVS afterwards it is amalgamated with other foreign company.

Indian growing economy provides large market to white goods industry MNC have more scope to grave.

Origin of the product:
Dryers exists before the washing machine came into existence. The washing machine and dryers are not sold in pairs until 20th Century.

The earliest dryers were invested in the 1800s. They were basically just metal drums with holes in them. The user would rotate them by a stick, over fire. This is similar to the may modern clothes dryers work today.

0 comments:

Post a Comment