Scope of E-Retails in Home Appliances | Home Accessories | Consumer Electronics | Home Decor & Accessories

Consumer Durables is one of the fastest growing industry segments in India. Urban markets account for the major share (65 per cent) of total revenues in the consumer durables sector in India. Demand of Electronics Goods in the Indian market is projected to rise to US $125 Billion in next 2-3 years and US $ 400 Billion by 2020. The Segment of Home Appliances and Consumer Electronics witnessed a substantial growth in past several years and has a major impact on economy of the country by improving the Quality of Life of People and Providing Employment to millions of people.

A robust 400 million Indian middle class with growing disposable incomes has been instrumental in driving demand of various consumer electronic devices. Price pressures due to high inflation, fuel costs, a weakening rupee and rising input prices will remain major concerns for manufacturers.

Low household penetration (well below world average) of appliances in India will provide opportunities for companies to expand their reach. Expansion of modern retail and exclusive company outlets across regions is expected to increase the penetration of Home Appliances. Appliances are expected to post strong growth even in non-metro cities (tier two & three cities & rural areas).
Other factors fuelling double digit growth of consumer appliances in India are rise in double-income nuclear families, easy availability of credit, changing lifestyles, introduction of new models, and increasing consumer awareness. [Source: Consumer Electronics and Appliances Manufacturers Association (CEAMA)]

With improvement in the Economy, Increased Disposable Income, Increased Women Education and Literacy Rate, Promotions from Retailers and Companies and Entry of E-Commerce Players in this Segment, the Consumer Appliances Industry is expected to witness growth in both value and volume terms.. Sales via Internet Retailing and Electronics and Appliance specialist retailers will help the overall Consumer Appliances market to grow. The demand for newer product categories and built-in appliances, however, despite growing, will continue to come from a niche consumer base.

In 2014-15, growth in demand for household appliances is estimated to have improved after witnessing three years of relatively slower growth. This is owing to better consumer sentiment and decline in input costs. With the economic scenario improving, rising disposable incomes and low penetration levels, long term demand is expected to grow at a healthy CAGR of about 13 per cent during 2014-15 to 2019-20. [Source: CRISIL]

CEAMA
Consumer Electronics and Appliances Manufacturers Association (CEAMA), was established in 1978 is an all India apex body of Manufacturers of Consumer Electronics and Home Appliances, a Rs.45, 000 crores industry. CEAMA acts as a catalyst in the promotion of Industry, trade, technology and entrepreneurship.
The membership spectrum comprises of Domestic Companies and MNCs, and includes large, medium & small-scale sectors. All leading brands in Consumer Electronics and Home Appliances viz. Videocon, Samsung, LG, Onida, Panasonic, Philips, Toshiba, Haier, IFB, Whirlpool, Godrej, Lloyd, Voltas, Ahuja, Onkyo, BSH Household Appliances, are members of CEAMA.

CEAMA is an Industry Chamber which is recognized by ‘Department of Electronics and IT (DeitY)’ in India. Recommendations and suggestions of CEAMA are given due consideration by the Government of India in formulating union budget and implementing new policies for the Indian electronics sector. It works closely with the various Ministries / Departments of Central and State Governments on all matters related to growth and development of the sector and functions as an interface between the government and industry, manifesting industry’s concern to the
government and sensitizing the businessmen about the policy changes brought out by the government.

Driving and Boosting Factors

The Prime Minister’s “Make in India” campaign boosts local manufacturing Post the national elections in May 2014 the new government proposed a new budget in which it emphasised domestic manufacturing. The Prime Minister initiated a new campaign “Make-in-India” and visited several countries to invite leading companies to set up their manufacturing bases in the country. The government not only proposed direct benefits to manufacturing companies but also laid out plans to improve the country’s infrastructure, such as roadways, between manufacturing hubs in order to facilitate the logistics.