Volume and value sales of consumer appliances in India increased strongly in 2016. The fact that monsoon conditions were better in 2016 [and that most Indians still depend on agriculture to make a living] resulted in an increase in disposable incomes in rural areas and a consequent rise in demand for consumer appliances. Furthermore, the number of players in the consumer appliances industry is increasing. To sustain increasing competition, manufacturers are expected to cut prices during the forecast period.
However demonetisation which was announced in November 2016, is reported to have impacted sales of most of the white goods manufacturing companies. The impact on sales is expected to continue in 2017 also but it is very early to predict the magnitude of the impact.
The ‘Make in India’ campaign initiated by the Government of India, has encouraged many manufacturers to increase local production capacity and set up new production facilities in the country. The Government of India has also initiated plans to electrify 100% of the country by the end of 2019, thus increasing demand for electronics and appliances during the forecast period.
Several of the categories witnessed sustained growth. Summarising a few highlights below:
- Consumers will depend more on cooking appliances and automatic washing machines, as the working population – particularly working women, in the country is expected to continue to rise during the forecast period.
- The average summer temperature in India is on the rise, with it becoming increasingly difficult for households to store perishable products. As a result of this trend, along with the growing availability of lower priced refrigeration appliances, demand for these products is increasing. With rising demand for larger capacity fridge freezers, companies have introduced many new double door model fridges, with average unit prices consequently rising.
- To efficiently use space, more and more people are opting for modular kitchens, a development which is boosting demand for large cooking appliances. Freestanding cooker hoods dominated sales in 2016, followed by built-in hobs. In addition, increasing demand for modular kitchens is boosting sales of products in these areas.
- Increasing number of cooking based shows on television is also encouraging people to buy food preparation appliances and to try out new recipes. Blenders and citrus pressers are expected to lead growth during the forecast period. With lots of new players entering the market, prices of cooking appliances are also becoming cheaper, thus helping to boost demand.
- Budget models of semiautomatic washing machines and automatic washing machines lead home laundry appliances sales in India. Semi-automatic washing machines saw an increase in demand in rural India, while consumers in urban India prefer automatic washing machines.
- Fryers is expected to be the fastest growing category during the forecast period due to the fact that many new products in this area consume less or no oil and are considered to offer a healthier means of cooking.
Consumers in India, especially men, have stated focusing more on personal grooming – a development which has helped to boost demand for personal care appliances. Given that the prices for saloon services are rising, this is fuelling the shift towards personal care appliances as consumers prefer self-grooming to save on money.