A comprehensive survey conducted on industries in the consumer goods sector shows a substantial growth in the sector due to technological advancements, falling prices due to high competition, and efficient and aggressive marketing.
The survey shows that the consumer behavior is changing as they are looking at luxury items as necessities, which can match their lifestyle. With higher disposable incomes, the consumer preference is shifting towards higher-end, technologically superior branded products.
Factors behind the growth of consumer goods sector are:
- The development of quality products and technology up gradation is helping consumer goods sector to achieve growth. For eg: in the refrigerator segment frost-free segment have achieved growth of about 54% and on the other hand cool refrigerators have faced de-growth of around 15%.
- Consumers are preferring higher-end products over common products.
- Due to high competition and aggressive marketing, there is growth in quantity production rate rather than the growth in value terms for some products.
- Due to lowering import tariffs there is growth in production of branded products and the share of unorganized sector has decreased to 8-10% from 40-50%. For eg: the production of VCD/DVD gone to organized sector turning it into branded DVD players.
- Consumer prefers to buy branded items because of good after sales services and narrowed price difference between branded and unbranded goods.
- Consumers are becoming more aware of the developments in technologies and features offered in the products. This results in increased demand of new innovative models and technologies in the market. For eg: Nokia is planning to launch its M-series mobiles with additional features after very less time of launching its N-series mobiles.
- Demand has also increased due to attractive financial schemes and reduced interest rates offered by financial institutions and commercial banks.
Growth in the consumer goods sector
Air conditioners had seen a growth of 25% while split air conditioners had 42.6%, micro-wave oven had growth of 27.3%, and DVDs and VCD/MP3 have 25% and 20% respectively.
An efficient e-strategy, real-time time promotion and use of the Internet can help in building loyal relationship between retailers and customers. The Internet can help in maintaining brand reputation management to competitive intelligence and can also store data regarding personalized services.
In addition, dynamic reporting will help in product launch or a mid-lifecycle promotion. All this innovative approaches will further help the consumer goods sector in achieving profits and establishing well in the market.