Consumer durable giants need to ramp up! The Indian consumer durable market is expected to reach $30 billion from the current level of $5.4 billion. This will happen provided our companies can achieve the level of penetration that is seen in other South East Asian countries.
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According to the report, the consumer durable market in India is under-penetrated and is considerably small when compared to other South East Asian markets due to per capita basis. The report also suggested that this sector is on the brink of a cyclical upturn.
"If India is to reach anywhere close to the South East Asian average, the India market should be at least 50% of the size of the China market as against the current size of just 9%," the report stated.
It must be noted that the market continues to have low penetration—6% level for ACs, 9% and 21% for washing machine and refrigerators respectively.
On further break-up of the market, the report revealed that if India successfully raises its penetration level to the South Asian average, then the AC market could grow to $11.3 billion. On the other hand, washing machine and refrigerator markets could grow to $5.5 billion and $13.9 billion respectively.
The report has also noted that with the economic scenario of the country improving, the consumer sentiment is expected to improve, which in turn could result in a huge push to the sales of white goods in the country.