Consumer 2.0 | Volume no. I, Issue 2, November 2007 | | | . | Durables and electronics industry growth - over 30% this festival season | | . | Sales boom - increased growth in high-end durables such as LCD TVs, washing machines, etc | | . | Organized retail bandwagon grows - Carrefour, Gautier, and Marks & Spencer board the bus | | . | Large go small - kids' wear segment attracts majors | The festival months of October and November that have just gone past were eventful for both consumers as well as producers. Even though the festive euphoria is an annual phenomenon, this year experienced long lasting new trends. Durables and electronics industry grew over 30% compared to same period last year. High-end categories such as LCD TVs and frost-free refrigerators registered over 200% and 40% growth respectively. The growth in this period was attributed mainly to products like LCD and flat TVs, washing machines, frost-free refrigerators etc. Equally, robust supply and production numbers matched the burgeoning demand. The consumer durables and non-durables sector recorded growth of 9.3% and 13.9% respectively, with the overall growth in consumer goods being 12.5% for the month of October. These figures were an improvement over the low growth rates of previous months, mainly due to the increased sales in the festive months. | Source: |
This is of course backed by high per capita income growth - 8.4% in 2006-07 up from 7.4% in 2005-06. Durables are not the flavour of just this season only. Take the National Accounts figures; consumption expenditure on refrigerators, cooking and washing appliances segment has shown a CAGR (Compound Annualized Growth Rate) of 11% over 1999-00 to 2005-06. The share of this segment in PFCE (Private Final Consumption Expenditure) has increased by 6% over these years. The buzz in the retail market continues. Organized retail presently accounting for 4% of the total market is estimated to increase its share to 22% by 2010 as per an AT Kearney Study. Companies like Aditya Birla Group, Indiabulls, Evinix Accessories, Parsvnath Developers, Carrefour, Marks & Spencer, Gautier and others decided to enter organized retail through one way or the other. However it is the kids' wear and the cosmetics segments that were the most in news. In the readymade garment market, three different companies planned their moves into huge but hitherto untapped kids' wear segment. Raymond plans to launch kids' wear in the premium smart casual's category while Reebok's strategy is to target children in the 5-12 age group. Giny & Jony also announced that they are planning to open 200 Freedom Fashions (FF) stores in India over the next two years. Similarly, the body care and cosmetics market is seeing huge demand for male grooming products. Consequently, Wipro Consumer Care, Dabur, Emami, etc. are launching products to capture this sector. The stock market and economic booms are continuing and so will the consumer markets. Shoppers on side of big players
India's urban shoppers, attracted more by wider choices than lower prices, are overwhelmingly in favour of letting in more branded retail chains, a sign of looming trouble for the nation's tens of thousands of small shopkeepers. The findings - part of a survey ordered by the PMO, on the impact of organised retail chains on stores - suggest the current advantages of smaller retailers are likely to erode sharply as India's nascent organised retail boomlet turns into a full-fledged rollout.
Made in Innovative India
Happy days are here again' is what probably the Indian manufacturing sector is now singing. After staying out of the limelight for years, bogged down by sluggish growth, the industry has been looking up in the past three years. Its growth has accelerated from 8.7% to 11.3% and is projected to top 12%. What's more, the 'Made in India' label too is becoming upmarket.
Check out India's first Spices Park
Value addition is the short cut for agri producers in making profit from the international market. The case of spices from India is also not different. Realization of this fact is the motive behind the concept of Spices Park in Idukki district of Kerala.
Durables industry sales soar this festive season
Despite data from the CSO pointing fingers at the durables industry for dragging down the manufacturing sector growth, sales figures from the industry during the festive season has a different story to tell. The overall durables and electronics industry growth, during the two-month festive season beginning October to the second week of November this year, is over 30 per cent as against the same period in the previous year.
The snack segment is getting bigger!
Packaged snacks are getting a lot of attention from big, branded players. So Frito-Lay, with its Lays, Cheetos, Kurkure, Lehar, Uncle Chipps and Quaker Oats snack brands is seeing some pretty concentrated competition from ITC's Bingo! with its 16 flavours, Britannia's 50-50 Chutkule, and Amul's Munch Time.
Bacardi to launch 2 Breezer variants
Bacardi, one of world's largest spirits company, is planning to launch newer extensions and packaging formats for its ready to drink (RTD) brand Breezer. The extensions will be fruit-based, vodka-based and wine-based offerings. Bacardi launched its RTD offerings under the Breezer brand in 2002, Breezer, since then, is growing at 20 per cent per annum.
UK duo bet big on tea bag market
Two UK tea companies - Typhoo and Twinings - have mapped out expansion plans in India, buoyed by the 40 per cent growth in the tea bag market. Typhoo, which was acquired by the Apeejay Surrendra group in 2005, will launch its products in January. Twinings Pvt Ltd will invest over Rs 10 crore in its fifth manufacturing facility in India, which will be operational by 2009.
Dell unveils new desktop, notebook PC
Dell unveiled a desktop and a notebook computer as part of its strategy to provide feature rich systems aimed at consumer market. XPS M 1530 Notebook boasting an ergonomic design on a sleek body promises a rich mobile experience with some of the premium accessories being integrated into the system as standard offering.
Luxury watch brand Longines plans to tap Tier II cities
Global luxury watch brand Longines, which has a significant presence in the Indian metros through retail tie ups with popular retail chains is now planning to woo customers in tier two cities. According to Charles Villoz, vice president sales, Longines International, India's luxury watch market has a lot of potential, wherein he believes that over the coming years, more Indians would sport luxury watches as compared to customers in the US.
Rakindo in hotels JV with Millennium & Copthorne
The newly formed joint venture between the UAE-based Rakeen Pvt. Ltd and Chennai-based mining firm Trimex Group, Rakindo Developers Pvt. Ltd, plans to expand into the hospitality sector in India with two separate partnerships. It is partnering with global hotel chain Millennium and Copthorne Hotels Plc. to build hotels in India and is also pooling resources with a UK-based private equity fund to invest in hotels in Asia.
We target the young consumers'
The HK $30-billion lifestyle major Esprit recently launched its new brand EDC in India. With more launches to follow, Esprit hopes to achieve a sale of $1 billion in seven or eight years from India alone.
Gaming in India set to grow 72% by 2010-11
The Indian gaming market is growing at a dizzying pace. The Indian gaming segment - comprising mobile, computer and console games and development - touched Rs 192 crore in 2006, and is likely to cross Rs 1,700 crore by 2010, states Nasscom.
GB-Prestige venture to set up luxury mall in Bangalore
UB City, a joint venture of UB Holding and the Prestige Group, is all set to house a luxury retail mall - UB City-The Collection. The 1.25-lakh sq ft mall will sell a host of major international and Indian luxury brands such as Louis Vuitton, Gucci, Fendi, Dunhill, Rolex, Omega and Kimaya, across categories such as apparel, jewellery, accessories, home and electronics.
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