MARKETING OF ELECTRONICS AND CONSUMER DURABLES IN INDIA NIRANJAN GIDWANI

 

CERTIFIED BOARD DIRECTOR (MCA - INDIA) | BOARD MEMBER | ESG DIRECTOR | DIGITAL DIRECTOR | FELLOW - BOARD STEWARDSHIP | MEMBER UAE SUPERBRANDS COUNCIL

 

India’s electronics and consumer durables market stands as one of the fastest-growing sectors globally, reflecting both the nation’s economic ascent and the evolving aspirations of its burgeoning middle class. With the market expected to become the world’s fourth-largest by 2027, the sector is a focal point for manufacturers, marketers, and policymakers alike. Yet, this dynamic market is not without its challenges—ranging from supply chain bottlenecks to the complexities of digital transformation.

Let’s dive a little deeper. The strengths of the Indian market are robust demand and demographic dividend. Increasing disposable incomes and urbanization have driven demand for premium and smart appliances, with consumers now seeking products that offer convenience, connectivity, and sustainability. The proliferation of smartphones, IoT devices, and energy-efficient appliances has led to frequent product replacement cycles and a culture of continuous upgrades.

Programs such as “Make in India” and Production Linked Incentive (PLI) schemes have boosted local manufacturing, attracting global giants like Apple, Samsung, and Foxconn to set up production bases in India.

The market is seeing significant digital transformation and an E-commerce boom. Online channels now account for roughly about 34% of electronics and consumer durables sales by value, translating to a shift of approximately ₹11,000 crore from offline retail to e-commerce in a single year. Platforms like Blinkit, Zepto, and Swiggy are expanding into electronics, making even large appliances readily available for home delivery. Indian consumers are increasingly confident purchasing high-value items such as washing machines and air conditioners online, a significant shift from the earlier preference for in-store experiences.

However, whether we like it or not, India has to rely heavily on imports for critical components—especially from China. The percentage varies by category, but estimates suggest that dependence on China for components in the electronics and appliances industry can range from 25% to 70%. This dependence exposes the sector to geopolitical risks and supply disruptions. Production costs in India are also higher than in countries like China and Vietnam, making it difficult to compete globally and affecting price competitiveness domestically. Inadequate infrastructure, logistical challenges, and limited access to credit for small manufacturers further constrain efficient supply chain management.

The sector does suffer from inadequate and underdeveloped indigenous R&D, particularly in advanced components like semiconductors and sensors, limiting the ability to innovate and localize high-value manufacturing. There is a lack of adequately trained technical personnel for advanced manufacturing processes, which is critical for scaling up domestic production. And despite the best intentions of the Government, regulations and bureaucracy do slow down the pace of innovation and market entry for new players.

The Indian consumer electronics and appliances market was valued at USD 86.08 billion in 2024, with a projected CAGR of 12.83% through 2030. Brands are investing heavily in both digital and traditional marketing, leveraging festivals, online sales events, and influencer partnerships to drive demand and brand recall.

While brands are pushing premium products, there is untapped potential in hyper-localized offerings and regional language customization, especially in rural and semi-urban markets. Many brands lag in providing robust after-sales support, which is crucial for building long-term consumer trust, especially for high-value durables.

Despite growing consumer interest in eco-friendly products, most marketing strategies underplay sustainability features and responsible disposal/recycling options. And Although e-commerce is growing, last-mile connectivity and awareness in rural areas remain limited, leaving a vast market underserved. These issues are compounded by intense competition, thin profit margins, and the need for continuous investment in technological innovation to meet the growing demand for smart, connected, and energy-efficient products.

By not fully leveraging digital channels to personalize outreach and by overlooking the importance of localized, vernacular content, marketers risk missing out on the next wave of growth in this dynamic sector. Brands should blend online and offline experiences, leveraging data analytics to personalize marketing and improve customer journeys. Brands will also need to prioritize the development and marketing of energy-efficient, recyclable products, and highlight these features in campaigns

Sadly, Indian brands have struggled to succeed in the electronics and consumer durables segments largely due to intense competition from well-established global players who dominate key categories with their superior technology, aggressive pricing, and strong brand equity. Indian brands often find themselves competing primarily on price rather than on differentiated features or brand loyalty, limiting their ability to capture significant market share in the rapidly evolving and highly aspirational Indian electronics market

To conclude - India’s electronics and consumer durables market is at a pivotal juncture—buoyed by robust demand, digital transformation, and supportive government policies, yet constrained by supply chain vulnerabilities and market gaps. By embracing localization, sustainability, digital innovation, and inclusive marketing, the sector can unlock its true potential and emerge as a global leader in the coming decade.

Good sales is the art of finding clever ways to dispose of what is made, procured and kept in inventory. Good marketing is the art of creating genuine customer value.

Good sales makes the company look smart. Good marketing makes the customer feel smart

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SHORT PROFILE -NIRANJAN GIDWANI

Niranjan is a Certified Board Director (MCA-INDIA), Board Member, certified ESG Director, Digital Director, Fellow of Board Stewardship and former CEO of Eros Group Dubai. He has just completed his International Corporate Director Certification Program.

He is also a member of the UAE Superbrands council, board member of the UAE Society of Sustainability and Green Materials, and HBR advisory council.

Niranjan is a Mechanical Engineering and an MBA from the Symbiosis Institute of Management, Pune.

Niranjan has over 43 years of hardcore senior management experience, out of which he has headed businesses in Hongkong, Germany, Singapore and Dubai for 35 years. He has done business related travel to over 60 countries.

Niranjan is a regular contributor to articles on Corporate Governance, Marketing, Strategy, Ethics, Ethical living in various Indian and Gulf publications, and also has his own blog www.thoughtcollectiv.com