Durable goods are those goods which dont wear out quickly and can be used for several

years. EXAMPLE: electronic equipments, furniture, kitchen appliances etc.

The Indian consumer durable industry has witnessed a considerable change from past some years. The reasons for this change are:

Increase in population Increase in disposable income Changing life-style Advertisement 0 % interest rates

Consumer Electronics Consumer Appliances

Brown Goods White Goods

i.

ii.

DEMOGRAPHIC Income level- income level of Indian consumer is increasing year after year. Income distribution- there is a demand shift of consumer durables from metropolis to smaller towns and cities due to a greater PPP.

CONSUMER BEHAVIOUR- Purchasing pattern keeps on changing with changing geographical and climatic conditions. TECHNOLOGY DRIVEN DEMAND- Indians spend more on technology base durable goods as compare to other countries. INFLATION/DEFLATION- India is facing the problem of inflation. It will be beneficial to invest in durable goods rather than money.

SONY
NET SALES IN INDIA: Rs 3700 CRORE (2010)

HITACHI
NET SALES IN INDIA : Rs 325.67 CRORE (2010)

India imported worth US$ 18.5 billion and exported worth US$ 3.69 billion of electronics goods in last 3 fiscal years.

Limited retail stores Lack of latest knowledge Poor infrastructure Competition with MNC

High disposable income Easy finance options Increase in purchasing power

Success in the long-term will require consumer durable firms to develop a wide and robust distribution network, differentiate their products in areas of relevance to the consumer and innovate in the areas of promotion, product financing, etc.