Consumer Durable Goods

Consumer Durable Goods

Durable goods are consumer goods that have a long life span (e.g. 3+ years) and are used over time. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, and hence durable goods are typically characterized by long periods between successive purchases.

These durable goods are referred to as Consumer Durables and examples of consumer durable goods include cars, household goods (home appliances, consumer electronics, furniture, etc.), sports equipment, and toys.

Characteristics of Durable Goods

Given below are the characteristics of durable goods:

  • Durables are also known as durable goods or consumer durables
  • Tend to last for at least three years, useful for longer than 3 years
  • Durable goods have a long life span and hold up over time, and do not wear out quickly
  • Do not have to be purchased frequently, the second purchase for durable goods lags time difference
  • Durable Goods are generally sold on a higher margin

Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toys, small tools, sporting goods, photographic equipment, jewelry, motor vehicles and motor vehicle parts, turbines, and semiconductors.

The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners, and washing machines. Instruments such as cellphones and kitchen appliances like microwave ovens are also included in this category.

The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate, and housing demand, greater disposable income, and an overall increase in the level of affluence of a significant section of the population.

The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment are as follows.

Consumer Appliances

A home appliance, domestic appliance, or household appliance is a device that assists in household functions such as cooking, cleaning, and food preservation. While many appliances have existed for centuries, the self-contained electric or gas powered appliances are a uniquely American innovation that emerged in the twentieth century. The development of these appliances is tied to the disappearance of full-time domestic servants and the desire to reduce the time-consuming activities in pursuit of more recreational time. Major appliances, also known as white goods, comprise major household appliances and may include:

  • Kitchen Appliances
  • Refrigerators
  • Washing Machines
  • Air-conditioners
  • Speakers and Audio Equipment
  • Kitchen Appliances / Brown Goods Consumer Electronics
  • Mixers
  • Grinders
  • Microwave Ovens
  • Iron
  • Electric Fans
  • Cooking Range
  • Chimneys

Consumer Electronics

Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications, and recreation. Consumer electronic devices such as smartphones, tablets, and laptops are constantly evaluated against three key criteria: low-cost, high-power efficiency and support of communication standards, Given below are some examples of Consumer Electronics:

  • Mobile Phones
  • Televisions
  • MP3 Players
  • DVD Players
  • VCD Players
  • iPad

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