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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 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.