17-06-2014, 03:15 PM
Consumer Durables
Consumer Durables.pptx (Size: 167.23 KB / Downloads: 16)
What are Consumer Durables
Consumer goods involve any type of product purchased by consumers that are manufactured for long-term use.
Examples of Consumer Durables
Cars.
Mobile phones.
Consumer electronics.
Furniture.
Home appliances such as refrigerators, televisions, air conditioners, microwaves.
Toys.
Scope
In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in the world & is expected to overtake Japan in the near future to become the 3rd largest.
Indian consumer goods market is expected to reach $400 billion by 2012.
Current Scenario
The consumer durables market in India is valued at US$4.5 billon currently.
In 2011, microwave ovens and air conditioners registered a growth about 25%
Frost free refrigerators have registered growth as many urban families are replacing their old refrigeration. Refrigerators scale amounted 4.2M in 2011, whereas production of refrigerators went up by 17% as compared to the preceding year.
Future Scenarios
With easy availability of finance.
Emergence of durable income families.
Fall in price due to increased competition.
Government support.
Growth of media.
Availability of disposable income.
Improvement in technology.
Reduction in customer duty.
Growth in consumer base of rural sector.
Samsung
Samsung Group is a South Korean multinational conglomerate company headquartered in Samsung Town, Seoul.
It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol.
Samsung produces around a fifth of South Korea's total exports and its revenues are larger than many countries' GDP; in 2006.
Toshiba
Toshiba Corporation earlier named Tokyo Shibaura Electric K.K., is a Japanese multinational electronics, electrical equipment and information technology corporation headquartered in Tokyo, Japan.
Diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and materials.
In 2010, Toshiba was the world's fifth-largest personal computer vendor measured by revenues (after Hewlett-Packard, Dell, Acer and Lenovo
Hynix
SK Hynix Inc. (KRX: 000660 is a South Korean memory semiconductor supplier of dynamic random access memory ('DRAM') chips and flash memory chips.
Founded in 1983, Hynix is the world's second-largest memory chipmaker (after Samsung Electronics)[2] and the world's sixth-largest semiconductor company.
Hynix has recently been merged to SK Group, the 3rd largest conglomerate in South Korea, in 2012.
Competitive Analysis
Market for Consumer Durables follows Perfect Market Competition, as per the following factors:
Many Sellers:
Numerous of companies manufacture durable goods resulting in large large no.of competition among various firms.
Each seller represents a very small portion of the overall market.
Firms are Price takers.
Conclusion
There exist Perfect Market Competition among the various Consumer Durable companies.
Perfect Market Competition is a market structure in many firms sell identical products and no. of barriers to entry into the market and exit for new potential sellers.
Industries producing consumer durables in India is set for sustained growth over long term.
Several Indian and MNC players are looking strengthen their presence in India to leverage this opportunity