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  Future of industries - Home appliances Industry  
     
     
 
Home appliances industry
 
Shining Perspective
Rural markets hold the key to success
Strong distribution network as well as innovative product design is the way into the future
Perceptible Selling Differentiation not an option but a necessity for survival
 
 
The sector will witness more laboratories technologies seeing light of day as consumer confidence in economic environment builds up slowly.
 
Product innovation led differentiation will drive market demand. Total cost of ownership would be a key factor
driving purchase.
 
Rural consumers hold the key to success in this vertical. As markets spread out from saturated urban regions to
low penetrated rural areas and Tier II/III towns, distribution network and brand recognition will continue to play
even more significant roles in determining market share and profitability.
 
Increasing competition and technology adoption has led to a situation where basic function of most of the consumer
durable goods has been commoditized. This has created a situation where identifying a unique differentiating factor
has become imperative.
 
There may be increased involvement of OEM’s in consumer financing of autos. Several players are considering entering the space with captive auto-financing companies. In the marking arena, there is a squeeze expected in marketing and advertising budgets.
 
 
  Industry Growth Drivers
  Increasing disposable income
  Rapid urbanization
  Availability of easy finance
  Product innovation
  Increasing presence of organized retail
  Increasing depreciation of the rupee
     
  Industry Competitive Scenario
  Highly competitive with presence of larger players with national presence
  Product innovation centric
  Expanding distribution network
     
  Industry Complexity
  Weak Distribution network
  Demand for highly customized products
  Highly price sensitive market
  High tax rates increasing total cost of ownership
  Al ready saturating Urban market generating next wave of demand from rural and semi-urban areas
  Lack of social skills among people selling these products
     
  Industry Pain Areas
  Weak distribution networks
  World wide Inflation
  Increasing credit rates
 
 
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