The consumer durables market is said to comprise of televisions, refrigerators, washing machines, air conditioners and microwaves. The consumer durables market in India has seen a proliferation of brands and product categories in recent years. All the major international brands from Japan, Korea, US, Europe and China have launched in India, with varying degrees of success. Most brands are still to build a pan-India dealer network.
The Size of sector:
The consumer durables retail market is estimated at Rs 41,500 crores, and the organized market is estimated to stand at Rs 4,300 crores. The share of consumer durables in the total organized retail market of India stands at about 9%, which makes it among the three most organized retail segments.
Key Players in the segment:
This segment has seen the emergence of strong regional players. Retailing is done either through manufacturers, stores like Videocon Plaza, BPL gallery or through chain stores like Vijay sales in Mumbai, VG Paneerdas, Vivek’s etc.
Vivek’s Limited is the largest consumer electronics & home electronics retail chain in India and the group consists of Vivek Agencies. Vivek Hire Purchase and Leasing, Vivek’s Service center and Vivek’s Lockers. Vivek’s popularized several brands by creating visibility and have the distinction of being market leaders and trendsetters with continuous support from the principal companies. Reliable services are ensured through cordial customer relationship.
Vivek’s grew from 3 stores to more than 54 stores and turnover increased to over Rs 265 crores (USD 61 million) and it has also become a public limited company from a family run enterprise. Vivek’s acquired Jainsons Corporation Ltd in 1999 and Premier Ltd in 2001. The company has also acquired the 18,000 square feet Spencer super store in 2002, which was converted into Vivek’s in 2006. Vivek’s has also streamlined its marketing and advertising activities and shopping ambience has been improved.
The Indian consumer durables major, Videocon entered the space of retailing of consumer durables through Next. Next is a revamped and scaled up version of Plugin sales, the foray of Raymond’s in consumer durables, which was acquired by Videocon. The chain is multi brand and stocks every brand in the business and is not an exclusive chain of stores for the parent company. The company has ambitious plans of expanding its network to more than 500 outlets by the end of the year 2007.
Infiniti Retail, a 100 per cent subsidiary of Tata Sons, has launched the first mega store of Croma India’s first national chain of multi brand outlets for consumer electronics and durable products. The store, spread over 20,000 sq ft of space, has on display, more than 6,000 products across eight categories, namely, home entertainment, small appliances, white goods, computers and peripherals, communications, music, imaging and gaming software. The store currently offers more than 180 national and international brands.
The launch of Croma heralds a whole new retail experience for consumers. With the widest range of products, unparalleled customer service and a unique shopping experience, Croma will set new benchmark in the consumer durables and electronics retailing in India.
Other key players in the market include LG Electronics India Pvt Ltd., wholly owned subsidiary of LG Electronic, South Korea and Samsung India, a 100 per cent subsidiary of Samsung Electronics Co Ltd, a leading provider of high technology products in consumer electronics, home appliances, telecom and IT.
Sony India was set up as a 100% subsidiary of Sony Corporation, Japan, in 1995. Since its inception, Sony India has its foot print across all major towns and cities in the country through a distribution network comprising of over 4500 dealers & distributors, 170 Sony World and Sony Exclusive outlets and 17 direct branch locations.
Sony India also has a strong service presence across the country with 19 company owned and 151 authorized service centers.