Frost & Sullivan Growth Story
Frost & Sullivan is a Global Growth Partnership Company dedicated toward facilitating the growth aspirations of our clients across the world for more than 55 years now. This is achieved by providing CXO level teams with disciplined research and best practices models to drive generation, evaluation, and implementation of powerful growth strategies.
With over 40 offices across 30 countries, Frost & Sullivan is uniquely placed to provide companies with a global perspective by leveraging our functionally varied and geographically diverse talent pool.
Our key differentiation comes from the fact that we have played thought leadership role in helping Government, Industry associations, industry –academic to establish sectoral policy and we have 15 years of tracking and advising clients in the electronics industry in India
Burgeoning Consumer Electronics and Appliances Market in India
Indian Consumer Electronics and Appliances (CEA) market has been witnessing sustained double digit growth rate in the past few years. Key factors driving growth include:
- Robust 650 million Indian middle class with growing disposable incomes
- Increasing product awareness, affordable pricing, innovative products
- Availability of easy financing schemes
- Retail marketing initiatives such as the exchange programs, bundled offers, attractive discounts, freebies and extended warranty services
- Rapid proliferation of e-commerce/m-commerce and online retailing
- Policy initiatives such as Make in India campaign which further drives domestic manufacturing
The Diverse Indian Market
India’s demographic profile has undergone characteristic development. GenY, the working-age population, working women, and the great Indian middle class have evolved to be the most influential segments of the population triggering new social, technological, and economic trends.
Smart cities in India are being targeted by consumer electronics players for penetrating the market and expanding their operations. These tier-II cities are going to be the driving engines for development in future and will define the growth story for the country and for the emerging players in consumer electronics.
The under penetrated semi-urban/rural market is expected to be the critical demand trigger for the CEA market in the ensuing years. Enhanced awareness of products and technology amongst rural consumers created by the innovative marketing initiatives of suppliers is a key to this growth.
Products trends impacting the market
There has been an evolution in the product line of the CEA players in the last few years and players continue to use diverse strategies to tap into Indian market.
Extensive focus on domestic manufacturing and exports
Many manufacturers are planning to build their manufacturing base in India owing to the availability of low-cost labor in the country.
- India is increasingly seen as a destination to manufacture to cater to huge local demand as well as to export to Middle East countries, African markets, and SAARC.
- There is a consistent rise in the exports turnover of WM, Refrigerator and AC segment.
- Imports of key CEA products are expected to decline further with exports picking up aided by the aggressive Government sponsored programs such as ‘Make in India’.
Future Trends in Consumer Electronics Industry
The trends emerging in the market involves convergence of intelligence and smart technologies in appliances to ensure next-level user experience.
Recent and upcoming products in the Indian market reiterate the emphasis of product innovation and developement to lead the way in future. The companies are increasing their focus on product design and ensuring that consumers get varied features to create a differentiation in the market and create an impact.