Why are so many people buying appliances in the West and not in India?
The Indian market is growing at an astonishing rate.
The number of units being sold in India is estimated at over 2 lakh units a year.
In India, the average purchase price is Rs. 14,000-17,000.
But in the UK and US, the figure is a whopping Rs. 5 lakh-8 lakh.
Why are the UK, US and India so different?
According to the latest survey by market research firm IHS Markit, India is the second largest appliance market after the US.
However, the market is being crowded by other countries.
India has over 500 million households with a demand for appliances, which is expected to grow to 715 million by 2025.
The survey also revealed that more than 70% of Indian consumers bought appliances from retailers, which are often cheaper.
However the consumer base of appliances is relatively young, and the number of appliances sold is growing fast.
According to market research group IBIS World, India has the fastest growth in appliance sales among the emerging markets in 2017.
According to the IHS Market Monitor, the global appliance market grew by 7.7% in 2017, with a projected growth rate of 9.5% in 2018.
However, in India, a huge number of consumers have chosen to buy appliances from online retailers and online suppliers, which often have lower prices.
IHS Markits data showed that in 2017 the average retail price of a new appliance sold in the country was around Rs. 12,000, compared to the Rs. 13,000 average retail prices in the US, UK and China.
The average price of an appliance sold online was around $1,500, with the average price in China at around $7,000 per unit.
The UK was the only country to fall short of the $5,000 mark, according to the survey.
Overall, the survey revealed that India is experiencing a big surge in appliance purchases.
IHS predicts that by 2020, the total appliance market will reach more than 3.7 million units.
There is a growing perception among consumers that they can afford the price of appliances.
For instance, in the last fiscal, the number who reported spending more than Rs. 25,000 on appliances rose to almost 45% of the population, from only 6% in 2020.
“India has become the best place to buy appliance,” says Vijay Duggal, head of India at IHS, in a statement.
India is also experiencing a boom in the appliance market.
The country now accounts for over 20% of global sales of appliances, up from 5% in 2016.
Despite the surge in appliances, the Indian economy remains a low growth engine.
India was the most impacted country by the global financial crisis, with GDP contracting for the third consecutive year.
With the Indian currency trading at around 6.6 per cent against the US dollar, consumers are buying appliances from overseas instead of buying in India.
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