Outlook for consumer durables industry in next five years

The Indian consumer durables industry has faced several challenges in the recent past with COVID-19-induced lockdowns, semiconductor shortages and poor consumer sentiment. With demand reaching pre-pandemic levels on the back of the festive mood of the customer, it is expected that the sector is set for a stable growth run over the next five years. The consumer durable sector is expected to play a critical role as India moves forward to achieve its $5 trillion GDP target. According to a report by India Brand Equity Foundation, the Indian consumer durable goods industry was valued at $10.93 billion in 2019 and can reach $21.18 billion by 2025. Here is the outlook for the Consumer durables industry for the next five years: Changing customer behaviour Customers’ behaviour has undergone a massive shift over the last few years. Rather than opting for the cheapest appliance or gadget, consumers demand products that are value for money but simultaneously offer a superior experience with better connectivity, advanced technology and a premium look and feel. While there has been a continuous increase in the role of technology in the consumer durable industry, it is expected that the trend will continue to grow over the next five years. As a result, manufacturers are expected to continue to focus on building a solid pipeline of products that meets these expectations. Consistent growth After being through several bumps and rough patches over the recent past, the Indian consumer durable industry is set to register consistent growth over the next five years. While the immediate future will witness strong double-digit growth due to the pent-up demand, the next few years are expected to attract a consistent growth run for the sector. With a stable domestic market and increasing export potential, India is set to emerge as a strong force in the global consumer durables industry. Semiconductor shortage The industry has been reeling from semiconductor shortages over the past few years. Several consumer durable manufacturers had to plan to supply chain operations keeping in mind the challenges in the global ecosystem. However, it is believed that the global semiconductor shortage will go away soon, and the industry will be able to tackle the delay in product launches effectively. Ultimately, as the industry can move past the semiconductor shortage, the consumer will have many products to choose from. Manufacturing ecosystem The production-linked incentive (PLI) scheme from the Government of India has set a strong foundation for achieving economies of scale, increasing export potential and building a competitive manufacturing ecosystem. The PLI scheme is expected to play an integral role in strengthening the Make in India movement and building a conducive manufacturing ecosystem, establishing India as a global export hub for consumer durables over the next five years. The industry is expected to become the engine of economic growth and create substantial job opportunities in manufacturing, retail and other segments. The coming years are expected to be the golden era for the sector as it doubles in size from the current numbers. Pawan Kumar is the CEO of Brand Elista (a TeknoDome Group Company).Elista has forayed into numerous categories and made a mark in each of them. Views are personal.  Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.