Indian Consumer Durable Industry
Dissertation Report
On
Growth Strategies Of LG Electronics (India)
Submitted By
P Hari Krishnan
Roll no: 41109
MBA (IB) - Marketing
for the partial fulfilment of
MBA-IB (2007-09)
SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS
PUNE
Executive Summary
The first of the 3 part dissertation series on “Growth Strategies of LG Electronics India” presents a picture of the consumer durables industry in India. The consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorised into Brown Goods and White Goods. The study plays a significant role in understanding the reasons for LG’s entry into India, its marketing strategies, growth strategies and finally, reasons why it is the No 1 brand in India in the consumer durables industry.
The report speaks extensively on the spurt in consumer demand in the last 5 years due to a large middle class population, rapid growth in disposable income, changing socio-economic conditions & favourable economic conditions.
Several key trends are driving growth in the sector
Income growth and availability of financing
• Disposable income levels are rising and consumer financing has become easier
Increased affordability of products
• Advanced technology and increasing competition are narrowing the price gap and the once expensive appliances are becoming cheaper
Increasing share of organised retail
• Urban and rural markets are growing at the annual rates of 7%–10% and 25%, respectively, with organized retail expected to garner a 10% share by 2010 from a mere 3% share at present
Entry of heavyweight retail players is increasing competition
• Competitive evolution of organised retail due to the entry of heavyweight players like Croma, E Zone and Reliance Digital is stimulating
On
Growth Strategies Of LG Electronics (India)
Submitted By
P Hari Krishnan
Roll no: 41109
MBA (IB) - Marketing
for the partial fulfilment of
MBA-IB (2007-09)
SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS
PUNE
Executive Summary
The first of the 3 part dissertation series on “Growth Strategies of LG Electronics India” presents a picture of the consumer durables industry in India. The consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorised into Brown Goods and White Goods. The study plays a significant role in understanding the reasons for LG’s entry into India, its marketing strategies, growth strategies and finally, reasons why it is the No 1 brand in India in the consumer durables industry.
The report speaks extensively on the spurt in consumer demand in the last 5 years due to a large middle class population, rapid growth in disposable income, changing socio-economic conditions & favourable economic conditions.
Several key trends are driving growth in the sector
Income growth and availability of financing
• Disposable income levels are rising and consumer financing has become easier
Increased affordability of products
• Advanced technology and increasing competition are narrowing the price gap and the once expensive appliances are becoming cheaper
Increasing share of organised retail
• Urban and rural markets are growing at the annual rates of 7%–10% and 25%, respectively, with organized retail expected to garner a 10% share by 2010 from a mere 3% share at present
Entry of heavyweight retail players is increasing competition
• Competitive evolution of organised retail due to the entry of heavyweight players like Croma, E Zone and Reliance Digital is stimulating
Bibliography: 1. NCAER study on Indian consumer 2. IBEF study on Consumer Durables 3. Financial Express 4. www.rediff.com 5. Business Standard 6. FICCI study on consumer durables 7. www.Naukrilog.com 8. www.equitymaster.com 9. www.Economic times.indiatimes.com 10. www.ibnlive.com