New Delhi: The consumer durable and home appliances industry are betting big on its return to growth in the new year, after a flat 2018 due to increased input costs and a weak demand.
The FMCG players, on the other hand, are confident about their growth momentum continuing in 2019 on the back of growing rural demand and online sales.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the year 2018 did not go as per its expectations and the entire industry saw a flat growth, while some segments even witnessed decline in sales volume.
“The consumer appliances and electronics sector, barring washing machines, witnessed almost flat growth in H1 (April-September),” said President, CEAMA, Kamal Nandi, adding that the demand only picked up during festival sales.
“Although the ensuing rupee depreciation, uncertain climatic conditions and increase in input costs has resulted in a slowdown for the industry, we believe that with the new strong market fundamentals in place and policy reforms such as GST slab reduction on TV…, digital cameras and monitors, will help the industry achieve enhanced levels of growth,” said president and CEO, Panasonic India and South Asia, Manish Sharma.
The FMCG market, on the other hand, expects to benefit from a robust consumption growth and growing rural markets, while it also expects technology and digital space to be a key growth enabler. The advent of technology and internet, coupled with the rise of young consumers, have helped the industry.
With an increase in average spend by consumers using internet and e-commerce, it has become essential for these companies to make additional investment to meet increasing demand for products, Deloitte India, partner, Anil Talreja said.
Grant Thornton India, partner, Dhanraj Bhagat said the FMCG sector, going forward, is expected to grow with rural demand, companies catering to different market needs with niche product offerings and higher market penetration through online sales.
This has been an exciting year as the FMCG sector has shown notable growth. It has gone up from USD 31.6 billion in 2011 to USD 52.75 billion in 2017-18, and it is anticipated that the momentum will be maintained with a 27.86 per cent compounded annual growth rate till 2020, managing director, Hershey India, Herjit Bhalla said.