Welcome news for retailers of consumer durables

This should come as welcome news for all those in the retailing of consumer durables, popularly known as white goods. The white goods segment is estimated to achieve production levels of Rs 27,000 crore by end of 2008-09, as against Rs 23,500 crore in the previous year and the segment is expected to show a growth of 15 per cent, points out a recent study by industry chamber ASSOCHAM.

The analysis on "White Goods: Emerging trends" done by ASSOCHAM also reveals that in the white goods segment, products whose demand will multiply include home theatre systems, colour TVs, DVD players and microwave ovens.

For the fiscal year ending March 2009, as against March 2008, the study has projected that growth of refrigerators will take place between 18-22 per cent and that of air conditioners in the range of 32-35 per cent. Washing machines segment is likely to grow between 15-20 per cent, microwave ovens by 35 per cent and colour televisions in the range of 25-30 per cent.

The study says that black & white televisions will witness a negative growth because the affordability factor of masses will be going in favour of colour televisions. Negative growth of B&W TVs will be around less than 22 per cent, says the study.

The colour TV production as per estimates by ASSOCHAM was around 15.10 million units in 2006-07 which went up by 25 per cent in 2007-08 and touched around 18 million units. According to the study, flat segment CTVs now accounts for over 60 per cent of the total domestic TV production and is likely to be around 65 per cent in 2008-09.