Business Finance Project

On

Industry Analysis of

Fast Moving Consumer Durable

Presented by Ajit Gupta

PGDM STUDENT

Main products of the industries and companies with share

Television

Mobile

refrigerator

Washing machine

Laptop mobiles

Home theater

share of companies in FMCD

SAMSUNG

L.G

WHIRPOOL

GODREJ

OTHERS

Growth rate of industries and contribution in GDP

Contribution in GDP

In 2015, revenue from consumer durables sector in India stood at

US$ 9.7 billion, which further increased to US$ 12.5 billion in FY16

Pest analysis of the industry

Political factors - government allowed 51% FDI in multi

brand retail and 100% in single multi brand retail.GST implement

28% GST tax on FMCD products.

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12

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FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

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Economic factor - Indian consumer have ability to buy

consumer durable products all types of products are available for

middle class, upper class segment.

Social factors –Indian consumers ready to buy new

consumer durable goods because India is growing country.

Indian populations have disposable income to buy FMCD

goods. Indian servicemen have no time, so it depends on FMCD

products.

Economic factor – before 20 years back they had blacken white television in Indian houses, but today they have smart television, smart phones, smart watch and others electronic

items.

Porter analysis of the industry

Threat of sustitude

Technology advancements

Buyers have huge propensity to substitute

Bargaining power of suppliers

Product differentiation By changing the input, firms cannot drastically differentiate on

price

Competitive rivalry

Continuous innovative leads to intense rivalry Homogeneity in product and low switching cost

Bargaining power of buyers

Use of internet to get all the information enables customers to be powerful

Buyers switching cost is very less

Threat of new entrance

Highly capital intensive Brand loyalty is moderate Major player have developed brand equity

Future prospects of the industry

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.