Durable Goods

CONSUMER DURABLE GOODS (A.C) PRESENTED BY Swapan Saxena

DURABLE GOODS 1-In shopping consumer goods, consumer do lot of selection and comparison based on various parameters such as cost, brand, style, comfort etc, before buying an Item. They are costlier than convenience goods and are durable nature.

2-Increasing consumer awareness and preference for new models have added to the demand. Products like air conditioners are no longer perceived as luxury products but are treated as necessities in the changed socio-economic environment with changed life styles.

GROWTH

1-The Air-Conditioners Industry has reached at 1.2 million units during 2005-06 with a growth of 25 percent from 9.8 lakh units in 2004-05 2-The sectors which have recorded excellent growth rates of more than 20 per cent in terms of quantity produced are Air Conditioners (25 %), Split Air Conditioners(42.6%)

AC Industry - global market sizes

USA–10 million

Europe– 2.7 million Middle East– 1.8 million

Japan– 9 million

China– 14 million

India– 0.7 million

FEW COMPANY

Electricity Power consumption

Comparison 2 TON

L .G

SAMSUNG

Comparison

SAMSUNG

VOLTAS

FUNCTION

L.G

SAMSUNG VOLTAS

DIFERENCE %

OPPORTUNITIES AND POTENTIALITIES FOR FUTURE GROWTH 1-While the consumer durables market is facing slowdown due to saturation in the urban market, rural consumers should be provided with easily payable consumer finance schemes and basic services, after sales services to suit the infrastructure and the existing amenities like electricity, voltage etc.

2-Penetration of consumer durables would be deeper in rural India if banks and financial institutions come out with liberal incentive schemes for the white goods industry segment, growth in disposable income, improving lifestyles, power availability, low running cost, and rise in temperatures.

Conclusion According to survey made by industry, the rural market is growing faster than the urban India now. The urban market is a replacement and up gradation market now.

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