2019
LLOYD
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TABLE OF CONTENT
Contents
SECTOR INFORMATION .......................................................................................................................... 3
WHITE GOODS........................................................................................................................................... 3
BROWN GOODS ........................................................................................................................................ 3
CONSUMER DURABLES ............................................................................................................................. 3
MARKET SIZE/CONTRIBUTION IN GDP WORLDWIDE AND IN INDIA......................................................... 5
GROWTH OF FMCD SECTOR IN PAST YEARS ......................................................................................... 6
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SECTOR INFORMATION
FMCD (other name durable goods) are those articles that people purchase from their
disposable income. These could be cars, household appliances, electronic gadgets such as
mobile phones or music player etc. The average life of these products are much more than
FMCG products.
The consumer durable market is split into:
WHITE BROWN
GOODS GOODS
CONSUMER
DURABLES
WHITE GOODS BROWN GOODS CONSUMER
DURABLES
AIR CONDITIONER MICROWAVE OVENS TVs
REFRIGERATOR COOKING RANGE AUDIO & VIDEO
SYSTEM
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WASHING MACHINE CHIMNEYS ELECTRONIC
ACCESSORIES
SEWING MACHINE MIXERS PCs
WATCHES & CLOCKS GRINDERS MOBILE PHONES
CLEANING EQUIPMENT ELECTRONIC FANS DIGITAL CAMERAS
OTHER DOMESTIC IRONS DVDs
APPLIANCES
CAMCORDERS
DURABLE CONSUMPTION
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ADVANTAGE INDIA GETS FROM FAST MOVING CONSUMER DURABLE SECTOR
MARKET SIZE/CONTRIBUTION IN GDP WORLDWIDE
AND IN INDIA
The growing purchasing power and rising influence of the social media have
enabled Indian consumers to splurge on good things. Import of electronic goods
reached US$ 53 billion in FY18.
Indian appliance and consumer electronics (ACE) market reached Rs 2.05 trillion
(US$ 31.48 billion) in 2017. India is one of the largest growing electronics market
in the world. Indian electronics market is expected to grow at 41 per cent CAGR
between 2017-20 to reach US$ 400 billion.
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As of FY18, washing machine, refrigerator and air conditioner market in India
were estimated around Rs 7,000 crore (US$ 1.09 billion), Rs 19,500 crore (US$
3.03 billion) and Rs 20,000 crore (US$ 3.1 billion), respectively.
India’s smartphone market in 2018 grew by 14.5 per cent with a shipment of
142.3 million units. India is expected to have 829 million smartphone users by
2022.
Index of Industrial Production (IIP) has grown 5.5 per cent year-on-year between
April 2018-March 2019.
Penetration of consumer durables & electronics
95%
92%
87% 88% 89%
85%
70% 70%
65%
60%
54%
50%
47%
31%
23%
8% 13% 4%
INDIA CHINA GLOBAL AVERAGE
GROWTH OF FMCD SECTOR IN PAST YEARS
Indian appliance and consumer electronics (ACE) market reached Rs 2.05 lakh
crore (US$ 31.48 billion) in 2017. It is expected to increase at a 9 per cent CAGR
to reach Rs 3.15 lakh crore (US$ 48.37 billion) in 2022. Electronics hardware
production in the country reached Rs 38,800 crore (US$ 5.55 billion) in FY18,
growing at a CAGR of 26.7 per cent between FY14-18. Demand for electronics
hardware in India is expected to reach US$ 400 billion by FY24 also the Draft
National Policy (DNP) targets production of one billion mobile handsets by 2025.
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Overall consumer durable exports reached Rs 5,451.42 crore (US$ 0.78 billion)
in 2017. Consumer electronics exports from India reached Rs 3,154.06 crore
(US$ 451.29 million) in FY19. The S&P BSE Consumer Durables Index has
grown at 16 per cent CAGR between 2010-18. The consumer durables sector in
India is expected to grow 8.5 per cent in 2018-19. Consumer durables index
under the Index of Industrial Production (IIP) has grown 5.5 per cent year-on-
year between April 2018-March 2019.
ANNUAL GROWTH
80
76.2814
73.1358
70.6587 71.9651
66.8231 67.4144
63.4819 63.1049
60.9771
56.0746
OCT-18 NOV-18 DEC-18 JAN-19 FEB-19 MAR-19 APR-19 MAY-19 JUN-19 JUL-19 AUG-19
ANNUAL GROWTH
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GROWTH
1400
1200
1000
800
600
400
200
0
2009 2013 2014 2015 2016 2020 E
WASHING MACHINE REFRIGERATOR AIR CONDITIONER TELEVISION
GROWTH FROM LAST TEN YEARS AND EXPECTED GROWTH FOR 2020
ANNUAL GROWTH
ANNUAL GROWTH
80
76.2814
73.1358
70.6587 71.9651
66.8231 67.4144
63.4819 63.1049
60.9771
56.0746
OCT-18 NOV-18 DEC-18 JAN-19 FEB-19 MAR-19 APR-19 MAY-19 JUN-19 JUL-19 AUG-19
ANNUAL GROWTH
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REASONS FOR GROWTH OF FMCD SECTOR
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