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Consumer Durables Chain – Review

January 22, 2009


digital reliance In continuing our coverage on Indian Retail Chains – [Read Apparel, Footwear, Pharmacy, Coffee] today we are covering the Consumer Durables sector. We are excluding the coverage of Mobile retailing because it can be covered as a separate topic.

The current consumer durable market is worth US$ 20 billion accounting for 5 per cent of total retail market. The market is growing at the rate of 10-12 per cent. The organized consumer durables market is valued at US$ 6 billion which is 20 per cent of organized retail market. Tata Croma, Vijay Sales, Godrej Lifespace, Viveks, Girias, Reliance Digital, Videocon’s Next, eZone and Electronics Bazaar are the leading retailers in this space.

Major Retail Formats in this vertical are – Stand alone outlets , Shop-in-shop, Malls and Prime locations and high streets. Consumer durables retail is providing huge business opportunity. There is gradual shift from cash purchase to financing purchases, particularly at the entry-level and high-end products. Nearly 23 per cent of home appliances sales are through financing options.

Existing Retail Chains in Consumer Durables Space:

Godrej Lifespace, the retail brand of Godrej & Boyce Mfg. Co. Ltd. operates 59 exclusive Home and Interiors stores in 27 cities across India. With a total floor space approx. to 2,00,000 sq. ft., it is one of the largest retailers of Home and Office products in India.

Croma: Croma is owned and run by Infiniti Retail Limited, a 100% subsidiary of Tata Sons. Woolworths Ltd, the Australian retail giant, provides technical support and strategic sourcing facilities from its global network. Stores are normally spread over 15,000-20,000 sq ft.

Next: NEXT is one of the emerging players in the organized retailing of consumer electronics and home appliances products. Under the aegis of NEXT Retail India Ltd, NEXT has now become the only consumer electronics chain that delivers across India with its presence in 16 states.

Vijay Sales was established as a partnership firm by Mr. Nanu Gupta. From the small TV showroom in Mahim in 1967, Vijay Sales has since evolved into one of the India’s leading chain of electronic superstores, now having expanded to major cities across the Country.

Viveks: Largest consumer electronics & home appliances retail chain in India; has three retail brands – Viveks, Jainsons & Premier; operates out of 52 stores in south India.

e-Zone and Electronics Bazaar: Are subsidiaries of Home retail owned by Pantaloon. eZone stores are typically large and are spread over 15,000 to 20,000 sft in size.

Reliance Digital: yet to establish its footprint in all the major cities across India. Reliance Retail plans have been more vocal and on paper rather than in reality.

With the slump in Residential Real Estate, Consumer Durables space is expected to perform moderately until the realty activity picks up. The space will still do well around the marriage season as more nuclear families start a new living 🙂

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