The recently released FICCI Consumer Durable Goods Survey has showed that the sector has recorded a growth of 11.5 per cent in 2006-07, against 8.5 per cent in the previous year. During April-September 2007, overall growth of the consumer durables industry has been 13 per cent – a trend that is likely to continue during the festive season till December 2007. Overall, the industry expects a growth of 12 per cent in 2007-08.
The survey also highlights that the market for non-IT consumer durable goods is estimated at about Rs 35,000 crore in 2006-07 with 11.5 per cent growth against 8.5 per cent growth last year.
According to survey, rural Indian market, which accounts for nearly 70 per cent of the total number of households, is witnessing a 25 per cent annual growth, while the urban consumer durables market is growing at an annual rate of 7-10 per cent.
According to Habil Khorakiwala, President, FICCI, “The survey reflects the changing dynamics of consumer behaviour – luxury goods are now being perceived as necessities with higher disposable incomes being spent on lifestyle products.”
The survey, based on feedback and interaction with representatives from the consumer durables industry, allied industry organisations, associations, Government agencies and public sector undertakings, has revealed that the sector is poised for a quantum leap due to technological improvements, falling prices due to competition, aggressive marketing and declining import tariffs.
The fast-growing segments during April-September 2007 that have led to the growth of the consumer durables industry are high-end products like flat panel TVs, LCD TVs, plasma TVS, slim CRT TVs, frost-free refrigerators, fully automatic washing machines, split air-conditioners, DVD players, microwave ovens and home theatre systems, among others.
During April-September 2007, the sectors that recorded excellent growth rates of more than 20 per cent, in terms of quantity produced, are air conditioners at 40 per cent, split air conditioners at 80 per cent, frost-free refrigerators at 35 per cent, washing machines at 20 per cent, fully automatic washing machines at 40 per cent, microwave ovens at 75 per cent, microwave oven-convection at 127 per cent, high-end flat panel TV at 200 per cent, LCD TV at 360 per cent, plasma TV at 120 per cent, VCD/MP3 players at 20 per cent, and DVD players at 25 per cent. The sector recording a negative growth is B&W TV at -20 per cent.
The sectors which have recorded high growth rates between 10 per cent and 20 per cent in April-September 2007 over the corresponding previous period are refrigerators at 12 per cent, direct cool refrigerators at 10 per cent, colour televisions at 15 per cent, flat CRT TVs at 15 per cent, window air conditioners at 17 per cent, semi-automatic washing machines at 19 per cent, watches at 12 per cent and clocks at 10 per cent.