The premiumization trend has markedly accelerated in the consumer electronics sector, with significant growth in the sales of smartphones, appliances, and televisions during the first half of 2024. According to GfK India, the offline consumer electronics market saw an 11% increase in value compared to last year. In comparison, volume grew by just 1%. This indicates a shift towards higher-value items, with entry-to-mid-segment products experiencing notable declines. For instance, mobile phone sales by volume dropped 6%, but the value increased by 10%. The smartphone segment registered a 12% rise in value, though volume remained unchanged. Small domestic appliances, such as kitchen products, grew in value by 29%, and major domestic appliances rose by 18%, driven by increased demand for cooling products amid a severe heatwave.
India is emerging as the fastest-growing major market in the technical consumer goods sector, valued at around Rs. 2 lakh crore (US$ 23.83 billion), with over 125 million units sold in the first half of 2024, representing an 11% increase in offline sales. Consumers increasingly opt for premium and feature-rich products, with notable growth in smartphones with 256 GB+ storage (up 140%), high-capacity washing machines and gaming laptops (up 30%), and premium refrigerators and split inverter ACs. Online sales also grew by 18% in value during the same period, with small domestic appliances increasing by 28% and large appliances by 26%. However, online refrigerator sales lagged behind offline performance, and televisions saw no growth in either channel.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.