Currently China is reputed as a hub for consumer durables across the world; however, soon a change is expected in the present scenario in the global market. It is expected that the Indian retail sector would soon overtake China to become the leading hub for consumer durables. China may lose its position to India due to changes in international investments following the revision in the existing tax regulation as well as saturating demand in the urban markets in India.

Study findings

According to a study conducted by PricewaterhouseCoopers (PwC) and Federation of Indian Chambers of Commerce and Industry (FICCI) for National Manufacturing Competitiveness Council (NMCC), India’s domestic retail market still lies largely untapped and has the potential of generating high revenues.

The study mainly focuses on the six major consumer durable categories including air conditioner, television, washing machine, refrigerator, mobile phones and toys. China has benefited immensely from the export of consumer durables, especially the aforementioned segments. China is recognised as the leading export market, accounting for 54% of the production and distribution of consumer durables at a global level.    

“China has been scaling new horizons in the consumer durables sector due to policies implemented by the Government of China,” says Manish Singhania, proprietor of Presto Private Limited, a mid-sized company in Jamshedpur, Jharkhand. The semi-conductor industry in China has been benefiting from the foreign direct investments, which have facilitated technology transfer as well as adoption of best practices. “The Chinese government has made it mandatory to source 10% of the components from the domestic market for indigenous manufacturers of mobile phones, which has resulted in the development of a robust supply chain in the country,” says Vishal Mazumdar, manager of Classic Electronics, a small-sized refrigerator manufacturer and supplier in Jaipur, Rajasthan.

Road ahead

Such measures should be replicated by India as well in order to emerge as a leading manufacturer of consumer durables. The study also pointed out that by undertaking technological advancements, rationalising tax policies, implementing measures to improve the raw material supply and vendor base, India can scale greater heights and gradually overtake China in the near future.