Value growth mostly benefits the retailers, but the industry must understand that it is not necessarily the sign of market growth.
Analysts have stated that the vast demand and sales of refrigerators, ACs, and smartphones will help India’s consumer electronics market reach $100 billion by December 2024. Regarding the global market value, India is now just behind China ($268 billion) and the US ($155 billion).
India has the potential to become the world’s third-largest consumer electronics market, owing to its fast-growing economy and augmenting consumer demand. Japan, which currently holds the third spot, is highly anticipated to fall behind India in the coming year. The growth applies only to devices and appliances sold to consumers and does not comprise ancillary electronics and heavy electronics.
The overall value of all consumer products like white goods, kitchen appliances, PCs, smartphones, and tablets is expected to be $99 billion by the end of this FY. The festive season from September to December will augment demand for the devices, ultimately boosting market growth. A research report from Counterpoint revealed that the consumer electronics market in the nation is growing at a rate of 10 percent, outpacing the USA by 3.3 percent and China by 3.92 percent.
According to Tarun Pathak, Research Director at Counterpoint, the easy availability of loans and the wide variety of devices available in the market meet the requirements of numerous consumers at a large scale. Interestingly, the demand for high-priced phones above Rs 1 lakh is also increasing among consumers. Towards the end of the festive season, the market for high-priced phones could swell by 30-40 percent.
On the other hand, Navkendar Singh, Associate Vice President at IDC, claims that growth is not always related to a product’s value addition. Value growth mainly benefits retailers, but the industry must understand that it is not necessarily a sign of market growth. All new customers are still waiting to join the electronics market in India, which indicates uneven growth. Therefore, it must be evident that India is countering China and the US markets.
