India’s consumer durables market is in a period of rapid expansion. By the year 2029, it is expected to grow at a compound annual growth rate (CAGR) of 11 percent to about Rs 3 lakh crore. This assessment has been made in the report of GI Group Holding.
Which class will play an important role among the salary earners?
According to the report, the salaried class, especially young professionals, will play an important role in the growth of this market. At present, the share of young professionals in the sales of fast-moving consumer durables is about 37 percent. While about 45 percent purchases are being made through finance, i.e. loan or EMI.
How did purchasing patterns change?
About 74 percent of Gen Z consumers use options like EMI or ‘buy now, pay later’. While for 68 percent of buyers, product features are the biggest deciding factor, followed by reviews for 61 percent, price for 59 percent and warranty for 55 percent.
Priority being given to value for money products
The report noted that 73 per cent of consumers still prefer ‘value for money’ products, but nearly 70 per cent are willing to invest in mid-tier or premium products if they get better performance.
How is the upgrade trend becoming stronger?
The role of women is also increasing rapidly in this upgrade trend, where 61 percent women have expressed their desire to make more ambitious purchases. About 46 percent consumers are changing their durable products every 2-3 years and 63 percent people also change brands frequently during upgrades. In such a situation, buying experience, after sales service and reliable support are becoming important factors for competitive edge in the market.
Increasing demand for smart living
The report also indicated that the next big demand will be related to ‘smart living’. About 42 percent of consumers already own at least one smart device, while 67 percent said their next purchase will be a product with smart features.
Companies will have to adapt to consumer trends
Sonal Arora, Country Manager, GI Group Holding, said that in view of the changing demand, employee training, better retail experience, strong after-sales service and expansion through PLI schemes will be very important. He said companies that adapt to these consumer trends will be better able to meet the needs of India’s rapidly growing middle class.