What are Consumer Durables?
They are used by organizations, workshops, garages; individuals etc., for some time may be few weeks to a few years and scrapped when they cannot be used any longer. For example screw drivers, spanner sets, drill bits and house hold items like fans, washing machines, bathroom fittings and the likes.
There are various types of products in the market to fulfill the different kinds of needs of the customers, some items are purchased regularly and they are an important part of our life, you buy it, use it and once it is over you buy another one. But there are number of goods that we buy occasionally and use for a longer time. Items like cars, home appliances and furniture etc. come under this category. One of the most common consumers durables would be furniture which is found in every home. This would include items such as sofas, chairs, tables, bed frames, and storage pieces such as chests of drawers and bookshelf units. Once thought to be limited to only items made of sturdy metal or wood, today any type of furniture that is intended for use over a period of at least a few years can rightly be classified as consumer durable. Such kinds of products are known as consumer durables.
Earlier the base market of consumer durables was narrow but with the changing economy, improvement in living standards and inflation people are now earning better salaries and are willing to spend more money on consumer durable items. The market of consumer durables is largely affected by the trend of international market and the national budget. If we closely follow the recent budget it clearly indicates that electronic items like AC, refrigerators, washing machines will get costlier due to rise in price of raw materials.
At one point only metro cities and urbane population were considered potential customers of consumer durables, but this trend has changed tremendously over the last decade. Now rural areas and small cities are emerging as good potential market. Consumer durables are not purchased frequently they are purchased with the purpose of long-term use. One of the common features of consumer durable is that they are sold with a warranty card, giving an assurance to the consumers that the product will work efficiently. It highlights their long term durable nature. Consumers durables are hard to wear out and it yields service over time. The market of consumer durable is expanding, thanks to the latest trend of marketing and economic rise, now people have enough money to spend on consumer durable items.
The market of consumer durables is seasonal in nature, it shows steep hike during the time of festivals or seasonal changes depending on its utility. Earlier only urban population were interested in investing in consumer durables during the time of festivals like Diwali and Holi but now the trend of rural market is showing a positive change.
Earlier the market of consumer durable was limited to cities but now consumer durable items has reached the rural market, surprisingly enough the rural market has given a more than better response to consumer durables. Increase in disposable income, advancement in technology and increase in competition is narrowing the price gap. It provides better buying opportunity to the consumers, they get better deals. Urban and rural markets are growing for consumer durables. The potential of the market and the buying power is increasing day by day it depends on companies how well they explore the opportunity and grab bigger sales part.
Companies like LG have introduced tailor-made packages including a whole range of white goods, others like Samsung are combining products and selling it, for example Samsung offers a combo of LCD and home theatre. Such deals offer better savings and high-end products to the consumers, as a result happy and satisfied consumers brings more leads. Companies are using different tactics to attract the buyers for their so called white goods (consumer durables).
The trend of marketing of consumer durable keeps changing depending on the consumers’ behavior and requirement. There was a time when 30% off could turn consumers crazy but now even 70% does not create a desired stir among the potential clients. Now people are looking for more quality and quantity. The latest trend of consumer durable marketing supports combo offers. If you are buying a home appliance or a laptop, companies offer other goods in the same package or they just charge a nominal amount for the second good. It makes the deal more profitable for the consumers to buy that consumer durables and companies can establish their roots in the market for their consumer durable products.
In cases where the consumer durables are used by industry there can be separate manufacturers mostly for different products. For household goods there can be one manufacturer for a few items.