Rising consumer electronics sector

The value of the consumer electronics sector has grown due to upgrade and new technology adoption in the market. Also, the semi-urban markets have started preferring branded products, which is highly encouraging for the manufacturers
consumer durables

The consumer electronics segment has been the silver lining amidst the circumstances that have resulted in unfamiliar positioning of the economy over the last couple of years. Consumer Electronics and Appliances Manufacturers Association (CEAMA) is an all-India body of organisations in the consumer electronics and durables sector that is currently a Rs 30,000 crore industry. CEAMA mandates for the domestic set-ups and MNCs and also includes large, medium and small scale sector. It looks at collectively promoting activities of the industries. CEAMA is one of the most credible and transparent industry bodies to have been associated with prominent industrialists like Dr Y V Verma, outgoing President – CEAMA and COO – LG Electronics India and Ravinder Zutshi, Deputy Managing Director – Samsung India Electronics.

Growth Factors

The scenario of this segment has transformed drastically over the last 4-5 years. “The value of the sector has grown due to upgrade and new technology adoption in the market. Also, the semi-urban markets have started preferring branded products, which is highly encouraging for the manufacturers, who have enhanced their penetration levels,” says Y V Verma, COO, LG Electronics India. A promising picture of the economy has proved decisive for the sector, as with more cash inflows, the demand for better technology has moved upward. Traditionally, north India has been the stronghold for the consumer durables market, yet the southern region has been emerging as a key market for consumer electronics products for the past couple of years now. The present consumer base in the global market is around 800 million, which is expected to reach 400 billion by the end of 2020. Globally, the potential of the Indian market has not been tapped fully, but this can change rapidly if the government and industry start working in tandem. “When you look at the overall contribution to the global electronics market, the share is significantly low for a country like India and our efforts at CEAMA are to make sure that the gap is narrowed down over the next 5-10 years,” says Anirudh V Dhoot, Director, Videocon Industries.

Challenges

The primary challenges that have hampered the overall growth of the sector in the domestic market include lack of infrastructure to cater to the growing demand of the consumer in the country and skepticism towards easement of foreign investment in the Indian market, which can only work for the betterment of the economy. Advanced R&D centres should be set up in the country, which can help in the advancement of technology and the traditional ones should be upgraded. “Exporting has not clearly been the strong point of the electronics segment in the country. Importing, on the other hand, has been prominent, which is not an encouraging trend for the sector,” says Rajeev Shukla, Hon’ble Minister of State for Parliamentary Affairs. The segment can also benefit from bringing up Techno Parks and SEZs, which can provide further impetus for growth. The sector should never overlook its ethical duties towards the environment. E-waste management plays an essential role in this regard. The semi-urban and rural regions are most notably untapped at present, which can further hasten the growth charts. Keeping the rural market in mind, the top-notch electronic players in the country should work on technology, which is not only state-of-the-art, but also affordable. Penetration is one of the major deficiencies, which has hampered the domestic electronics segment and only some serious perseverance over the next decade can provide fruitful outcome.

Projected Market Size -2015 (In million): Televisions- 32.0, DVD Players- 16.0, Microwave Ovens- 5.0, Air-conditioners-  10.3, Washing Machines- 8.7

 

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