India is likely to emerge as the world’s largest middle class consumer market with an aggregated consumer spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte titled ‘India matters: Winning in Growth Markets’.
The report further said: combined with the increase in income levels of the Indian middle classes, the rise of the Indian consumer is driving greater aspirations, the need for world class infrastructure, brand leading consumer products and sophisticated services.
Consumer durable companies are broadly categorized into 3 parts:
White Goods: washing machines, conditioners, audio equipment, speakers and refrigerators.
Brown Goods: kitchen appliances such as microwave ovens, grinders, chimneys, electric fans, iron, mixers and other similar cooking appliances.
Consumer Electronics: VCD players, DVD players, MP3 players, mobile phones, telephones.
Here’s a look at the 10 leading consumer durable companies as per Brand Equity’s recent survey:
Since its founding in Suwon, Korea in 1969, Samsung Electronics has grown into a global information technology leader, managing more than 200 subsidiaries around the world.
The company’s offerings include home appliances such as TVs, monitors, printers, refrigerators, and washing machines as well as key mobile telecommunications products like smartphones and tablets. Samsung also continues to be a trusted provider of key electronic components like DRAM and non-memory semiconductors.
Samsung pledges to create and deliver quality products and services that enhance convenience and foster smarter lifestyles for its customers around the world. Samsung is dedicated to improving the global community through its constant pursuit of groundbreaking innovations and value creation.
With the success of its electronics business, Samsung has been recognized globally as a industry leader in technology and now ranks as a top 10 global brand.
Since the company first won top global market share in 2006, exceptional technology and innovative design have strengthened its unrivaled leadership in flat-panel TVs and monitors.
In the digital appliances business, Samsung achieved remarkable growth by debuting inventive new products and differentiated design in the premium market.
With 2014 global sales of USD 55.91 billion (KRW 59.04 trillion), LG comprises of four business units — Home Entertainment, Mobile Communications, Home Appliance & Air Solution and Vehicle Components — and is one of the world’s leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators.
Established in 1958, LG has led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs.
LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company.
It plays an active role in world markets with its assertive global business policy. As a result, LG Electronics controls 119 local subsidiaries worldwide, with roughly 83,000 executives and employees.
The company was founded as Tokyo Tsushin Kogyo KK (Tokyo Telecommunications Engineering Corporation) in 1946, and changed its name to Sony in 1958. The company’s name was derived from the Latin word ‘sonus’ meaning sound, and ‘sonny’ a slang word used by Americans to refer to a bright youngster. The name was also chosen as it could be pronounced easily in many languages.
Foxconn Technology Group currently makes nine television models in India for Sony, which plans to expand the line-up that currently includes models with screen sizes of 22, 24 and 43 inches produced only for the local market.
Sony India’s revenue growth rate slowed in the past two financial years amid the global restructuring. The company scaled down its smartphone business to focus on the Rs 15,000-plus segment.
Philips India Limited is a subsidiary of Royal Philips of the Netherlands, a leading health technology company.
The company is organized into three main divisions: Philips Consumer Lifestyle (formerly Philips consumer electronics and Philips domestic appliances and personal care), Philips Healthcare (formerly Philips medical systems) and Philips Lighting. As of 2012, Philips was the largest manufacturer of lighting in the world measured by applicable revenues.
At the end of 2013 Philips had 111 manufacturing facilities, 59 R&D Facilities across 26 countries and sales and service operations in around 100 countries.
It began operations in India in 1930, with the establishment of Philips Electrical Co. (India) Pvt Ltd in Kolkata as a sales outlet for imported Philips lamps.
In 2008, Philips India entered the water purifier market. In 2014, Philip’s was ranked 12th among India’s most trusted brands according to the Brand Trust Report, a study conducted by Trust Research Advisory.
Philips’ core products are consumer electronics and electrical products, including small domestic appliances, shavers, beauty appliances, mother and childcare appliances, electric toothbrushes and coffee makers.
Prestige, from the house of TTK, has been working for the last over 50 years with a dream of making a company that provides total kitchen solutions for smarter cooking to the modern Indian consumer. It is considered a market leader for its innovative kitchen equipment and tools. The company claims to create products that have essential qualities like safety, durability, reliability, innovation and value.
Prestige has a pan India presence with over 10,000 multi brand outlets. The brand also retails through its 530 exclusive stores spread across 290 towns.
The brand offers pressure cookers, cookware, gas stoves, mixer grinders, induction cooktops, which have a huge customer base throughout the country. Prestige’s product basket also includes rice cookers, irons, wet grinder, barbeque, OTG, sandwich makers, toasters, kettles, juicers, hand blenders and air fryers.
The brand had crossed a whooping 1,500 crores turnover in the financial year 2015-16. Prestige also recently set up a greenfield manufacturing unit in Karjan, Gujarat with an investment of over Rs 300 crore in an area spanning over 60 acres. Through its wholly owned subsidiary, TTK British Holdings, Prestige had also acquired Horwood Homewares, a table and cookware supplier in the UK, to gain a foothold in the European markets.
The brand has its own e-ommerce portal with four fulfilment centres across four zones in Hosur (Tamil Nadu), Pune (Maharashtra), Gurgaon (Haryana) and Kolkata (West Bengal), and processes over 750 orders per day. Prestige is also present on online portals like Flipkart, Snapdeal, Amazon, Shopclues, etc. The brand is also working on omni-channel initiatives to leverage its 530 EBOs.
The brand introduces over 100 new products every year. Recently, it has launched a new category —Home Cleaning Solutions. Furthermore, the kitchenware major has plans to open 50 new EBOs in the year 2016-17.
Videocon Industries Limited is a large diversified Indian company headquartered in Mumbai. The group has 17 manufacturing sites in India and plants in Mainland China, Poland, Italy and Mexico. It is the third largest picture tube manufacturer in the world. The group is a US$5 billion global conglomerate.
The Videocon group’s core areas of business are consumer electronics and home appliances. They have recently diversified into areas such as DTH, power, oil exploration and telecommunication.
In India, the group sells consumer products like colour televisions, washing machines, air conditioners, refrigerators, microwave ovens and many other home appliances, through a multi-brand strategy with the largest sales and service network in India
In November 2009, Videocon launched its new line of mobile phones. Videocon has, since launched a number of handsets ranging from basic colour FM phones to high-end Android devices.
Whirlpool entered India in the late 1980s as part of its global expansion strategy. It forayed into the market under a joint venture with TVS group and established the first Whirlpool manufacturing facility in Pondicherry for washing machine category.
In 1995 Whirlpool acquired Kelvinator India Limited and marked an entry into the refrigerator market as well. The same year the company also saw acquisition of major shares in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to create, Whirlpool of India Limited. This expanded the company’s portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners.
Whirlpool of India Limited headquartered in Gurgaon, is now one of the leading manufacturers and marketers of major home appliances in the country. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of the manufacturing set-up features an infrastructure that is witness of Whirlpool’s commitment to providing its consumer with forward looking solutions.
The company, which reported turnover of Rs 3,488 crore in the financial year 2015-16, recently announced the launch of KitchenAid products in the Major Domestic Appliance (MDA) segment in India at ‘ACETECH 2016’ in Mumbai.
The company is also looking at expanding its manufacturing capacity its plants in the country. Whirlpool of India’s plants are located at Faridabad, Pune and Puducherry.
Panasonic started local production with rice cookers from 1990, TVs from 1996 and air conditioners from 2013 to address the growing demand in the market.
The company aims to expand its appliances business in India by accelerating the localizing, production and sales activities to develop products that match the local needs.
Keeping in mind the rising demand for value-added refrigerators, the new factory has been set with an investment of Rs 115 crore at Technopark, Jhajjar, Haryana and will be operational starting November 2017.
With an annual production capacity of approx. 500,000 units the new plant will be spread across 14,000 sq. metres and will manufacture refrigerators comprising of unique features such as energy-saving, long-lasting freshness and design. Sales for the same will commence from April 2018 in India.
Panasonic will also establish the India R&D Center in Appliances Company India consisting of two technical divisions to accelerate the product development and to realize locally fit products. It will strengthen the Design Division targeting the complete local product development process in India.
The company will establish the design division in Bangalore in April 2017 in partnership with Tata Elxsi. Through this division it will develop technologies such as artificial intelligence and robotics applicable to appliance products not only for India but also for Japan and global markets.
Onida is an electronics brand of Mirc Electronics, based in India. Onida was well known in India for its colour CRT televisions.
Mirc Electronics commenced its journey in 1981. Starting with a goal of manufacturing televisions sets, it transformed into a complete consumer durable company with a wide product portfolio including Flat panel TVs (LED & LCD TVs), Air Conditioners, Washing Machines, Microwave Ovens, DVD & Home Theatre systems, Mobile phones, Projector systems and LED lights.
Onida has been an enduring brand in the Indian Consumer Durable space, and has won the trust of millions of consumers with its high quality products. Being an Indian company, the company understands the unique requirements of the Indian consumer – more than any other company does. This has found expression in so many of the innovative products that have been launched over the years. This understanding of the consumer is one of the core strengths of the company that has enabled it to compete in the market.
Mirc has world class manufacturing facilities at Wada (Maharashtra) and Roorkee (Uttrakhand) with a capacity of over 3.4 Million Televisions and 2.4 lakhs Washing Machines respectively.
With a Maverick leadership team, Onida has become a torch-bearer for consumer-centric innovations and unconventional communication.
Onida was ranked 51st among India’s most trusted brands by the Brand Trust Report 2013 India study, a research conducted by Trust Research Advisory and subsequently, in the Brand Trust Report 2014, Onida was ranked 27th among India’s most trusted brands.
(With inputs from Bhavika Vallecha for Indiaretailing Bureau)