Consumer durables market to rise by 12 per cent
Consumer durables sector in India is poised to increase by at least 12 per cent due to increased choice and preferences, says a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The segment recorded a growth of 11.5 per cent in 2006-07 against 8.5 per cent in the previous year. During April-Sep 2007, the overall growth of consumer durables industry has been 13 per cent. Hence, the industry is expecting the overall growth in 2007-08 to be 12 per cent, the survey said.
According to industry organisation FICCI, the sector would be witnessing such exponential growth based on a paradigm shift in consumers' mindset, which is giving rise to huge demand of luxury goods coupled with rising purchasing power.
This growth can also be witnessed in the rural areas where the market is growing at 25 per cent compared with urban areas where the growth rate is 7-10 per cent.
The fast growing segments that have driven growth of this sector are flat panel TVs, LCD TVs, plasma TVs, slim TVs, frost-free refrigerators, fully automatic washing machines, split air-conditioners, DVD players, microwave ovens and home theatre systems etc.
The survey also noted that the growth in production has been more in terms of quantity or volume rather than growth in value terms for a number of products.
Consumers have also been encouraged to buy such goods due to consumer loan schemes with reduced interest rates over the years by commercial banks and financial institutions.