India’s fast-growing consumer durable industry saw a decline in sales last year due to factors like increased input costs and low demand. That, along with rupee depreciation and unseasonal rains affected the sector to some extent. Despite all the odds, however, the FMCD industry going to witness an upward growth in the coming years. According to a recent report, the consumer durable industry is projected to see a growth of 6.5% to 8.5% in (2019-2020). In fact, India is all set to clinch the 5th largest position in the consumer durable market. Besides an improvement in the consumer demand, factors including rising disposable income, evolving lifestyle habits and reduction in Goods and Services Tax (GST) rates for essential everyday goods are likely to contribute towards this market expansion. This year has also brought in new trends that are slowly transforming the country’s FMCD industry. 

Increase in volume consumption

With the rise in dual-income households and GDP per capita, the spending capacity of consumers in India has gone up significantly in recent years. The increased urge for a better quality of life, without a doubt, is another major factor driving volume consumption of FMCD products. Additionally, the ever-growing elite and affluent population of India, changes in consumer behaviour and spending patterns are collectively ushering in a new era for the domestic consumer durables market. This explains why premium and luxury consumer durables may see a higher consumption this year.

Rural market demonstrating high potential

In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted in a substantial increase in the purchasing power of the rural customer base. Rural consumers are expected to contribute largely to the sales of FMCD products in 2019. With the growing adoption of technology and easy access to credit for customers residing in tier III towns and villages, the demand for electronic goods, LED lightings, smart kitchen appliances in the rural market is on the rise. Moreover, following the launch of Pradhan Mantri Ujjwala Yojana, clean cooking fuel - LPG is now available in every Indian household, which has a resulted in a sizable increase in the demand of cookware and other essential kitchen goods. 

Marketers becoming more customized and localized

India’s complex and growing market, consumers’ evolving spending patterns, the increasing and the impact of digital technologies on spending, and emerging trends that could alter spending have forced marketers to change their one-size-fits-all approach. In line with the shifting circumstances, it’s necessary to discard the outmoded marketing strategies and implement new ones. The approach as well the communication have to more diversified, which, in turn, will help the companies to expand their product line and services to a larger audience base. Today, many brands have realized the need for customized marketing models to target individuals in particular locations and communities.

Focus to remain on consumers

Consumer durable industry has always exhibited impressive growth despite strong competition. As rapid socio-economic changes sweep across India, the country is witnessing the creation of new markets and a further expansion of the existing ones. The industry still holds huge potential as a section of the country's population still remains untapped. However, companies are on a mission to change this scenario by offering a personalized consumer experience. New-age consumers demand easy access to services, along with consistent assistance at every purchase for a seamless buying experience. To address their needs, brands are coming up with energy-efficient appliances that are not only environmentally friendly, but also help customers keep their utility bills in check.

A combination of changing lifestyle, higher disposable income, greater product awareness and affordable pricing have been instrumental in changing the pattern and amount of consumer expenditure, leading to the robust growth of consumer durable Industry. Also, it is safe to say that new customers are also coming on board in rural regions because of the government’s Ujjwala Yojana initiative. Since we are just 2 months into 2019, let's wait to see what exciting things the FMCD industry has in store for consumers this year.