Consumer Durables

The consumption category has been averaging 7% growth in the current financial year and is largely driven by positive consumer sentiment. The 7th Pay Commission and OROP are expected to have significant impact on consumption resulting in a 'multiplier effect'

Consumption is the theme this year and Acuité believes that India’s tag of a ‘domestic demand’ driven economy is well founded. The consumption category has been averaging 7% growth in the current financial year and is largely driven by positive consumer sentiment. The 7th Pay Commission and OROP are expected to have significant impact on consumption resulting in a ‘multiplier effect’.

As apparent from the healthy growth in sales in the automotive and electronics sectors as well as the overall success of ecommerce platforms, the category is expected to maintain its strong momentum. Acuité expects the category to average 17% growth in the remaining quarter of the current financial year on the back of a healthy monsoon and rise in employment generating government expenditure in rural areas. Clearing up of inventories will be instrumental in augmentation at the manufacturer’s end. 

The consumption category has been averaging 7% growth in the current financial year and is largely driven by positive consumer sentiment. The 7th Pay Commission and OROP are expected to have significant impact on consumption resulting in a ‘multiplier effect’

Sectors such as Automotive and white goods among consumer durables are picking up and experiencing healthy demand despite the demonetization exercise, which restricted cash based rural consumption. Average Pending Order Book is continuing to grow negatively (as on Q1 2016-17) and this however points towards a deceleration of sorts in consumer demand.

Principal factors influencing the category   

Personal/ Retail Credit Offtake
Repo rate/ Interest Cost
Economic Growth & Outlook
Government Policy & Support

(Updated as on March 15, 2017)