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SWOT Analysis of India Vacuum Cleaner Market 10.1. Strengths 10.2. Weaknesses 10.3. Opportunities 10.4. Threats 11. Government Regulations in India Vacuum Cleaner Market Customs Duty on Vacuum Cleaners RoHS Compliance Certification CE Certification Indian Electrical Standards 12. Prerequisites to Enter in India Vacuum Cleaner Market Consumer Preferences Procurement of Vacuum Cleaner Parts and Accessories Competition Government Regulations Marketing Platforms 13. Competitive Landscape for India Vacuum Cleaner Market 13.1. Market Share of Major Pla ers i I dia Reside tial Va uu Clea er Market, FY’ a d FY’ 13.2. Market Share of Major Players in India Non- Reside tial Va uu Clea er Market, FY’ a d FY’
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14.
I dia Va uu
Clea er Market Future Outlook a d Proje tio s, FY’
-FY’
India Vacuum Cleaner Market Size
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1. India Vacuum Cleaner Market Introduction 1.1. Comparative Analysis of India and the US Vacuum Cleaner Market 2. India Vacuum Cleaner Market Supply Chain Analysis 3. I dia Va uu Clea er Market Size, FY’ - FY’ 3.1. B Sales Re e ues, FY’ - FY’ 3.2. I dia Va uu Clea er Market Size Sales Volu e, FY’ - FY’ 4. India Vacuum Cleaner Market Segmentation 4.1. B Reside tial a d No Reside tial De a d, FY’ -FY’ 4.2. By Type (Handheld, Canister, High Pressure Cleaners, Robotic and Others) of Residential Vacuum Clea ers, FY’ a d FY’ 4.3. By Purpose of Residential Vacuum Cleaners (Dry, Wet and Dry, Car Vacuum Cleaners, Steam Cleaners, Wi do Clea ers a d Others , FY’ a d FY’ 4.4. By Distribution Channels for residential Sector (Door to Door, Retail stores, Online Portals, Tele arketi g , FY’ a d FY’ 4.5. B Regio al De a d Tier I, Tier a d Tier Cities , FY’ a d FY’ 5. India Vacuum Cleaner Market External Trade Scenario 5.1. E ports Value a d Volu e, FY’ -FY’ 5.2. I ports De a d a d Value, FY’ -FY’ 6. Brand Analysis of Indian Vacuum Cleaner Market 7. Growth Drivers for Indian Vacuum Cleaner Market 8. Issues and Challenges in India Vacuum Cleaner Market 9. Trends and Development in India Vacuum Cleaner Market Outsourcing of Cleaning Services Demand for Aesthetically Pleasing Products Demand for Hi- Tech High Capacity Products
HOW HAS INDIA VACUUM CLEANER MARKET GROWN IN LAST 5 YEARS • The India Vacuum Cleaner Market has evolved from being an elitecentric market into a market which caters to the demand for all income groups. Around 5 years back, the penetration of vacuum cleaners in rural areas was miniscule. However, due to surge in awareness among the semi-urban and rural areas, the demand for vacuum cleaners has been rising. The growth in demand for vacuum cleaner in India has primarily been driven by rapid urbanization, increase in the number of working women and rising purchasing power of the people. Increase in tourism has boosted the hospitality industry which has further acted as a growth driver for this industry. Emergence of online shopping portals, proliferation in outsourcing of cleaning services and growth in the organized retail has augmented the demand in the vacuum cleaner industry during the spa of last fi e ears fro FY’ to FY’ .
Figure: India Vacuum Cleaner Market Size by Volume in Thousand units, FY’ -FY’ 5
10,0%
700
9,0% 600 8,0% 500
7,0% 6,0%
400
5,0%
300
4,0% 3,0%
200
2,0% 100 1,0% 0
0,0% FY'2010
FY'2011
Thousand
FY'2012
FY'2013
FY'2014
Growth Rate %
FY'2015
Vacuum cleaners in India are sourced to the distributors •
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The poor government spending on infrastructure in India coupled with low advertising efforts by the companies has further restrained the growth of vacuum cleaner market. Cheap and poor-quality imports from China have further acted as a deterrent in the growth of budding players in this market. Germany has consistently been the major export destination for vacuum cleaners in India. . Since there is availability of cheap labor and raw materials in India, it can fulfill the excessive demand of other countries at a low cost. Hence, Germany has served as the major export destination for Indian vacuum cleaners and accounted for ~% of the total a uu lea er e ports duri g FY’ . I ter s of i ports, Chi a has contributed to the highest proportion of imports of vacuum cleaners to India. Vacuum cleaners in India are sourced to the distributors from the manufacturing plants, who charge a sales margin of about ~% on the overall sales. These distributors are directly associated with the companies, whether they are global or domestic companies. The middlemen are also responsible for the promotion and advertisement of vacuum cleaners, whose expenses altogether are borne by the manufacturers. The distributors supply the cleaners to exclusive dealers, company showrooms and retailers which are located at both the regional and local level. The retailers charge a margin of around ~% before selling the vacuum cleaners to the final customers. Most of the hospitals, educational institutes and corporate houses purchase vacuum cleaners in bulk quantities. Large bulk sales as well as access to the overseas markets have led the companies to procure substantial profit.
HOW THE PLAYERS ARE POSITIONED IN INDIA RESIDENTIAL VACUUM CLEANER MARKET? • The demand from residential sector has dominated the overall market, hi h has a ou ted for a pro isi g share of ~% duri g FY’ . With the reduction in size of households, it has become cost effective to use vacuum cleaners for cleaning purposes instead of manual cleaning with the help of housemaids. This segment has marked revenues worth INR ~ million in FY 2010 to this industry which appreciated to INR ~ million during FY 2015 at a CAGR of ~%. However, the percentage contribution of this segment dipped owing to the surge in non residential services such as hospitality services, malls, industrial activities and airports. • The India Residential vacuum cleaner market is dominated by Eureka Forbes Ltd. which contributed to INR ~ million revenues from the sale of its vacuum cleaners in FY 2015, and thus have accounted for ~% of the revenue contribution in the overall vacuum cleaner market in India. Eureka Forbes has been the pioneer in vacuum cleaners market of India. It introduced this product at a time when manual cleaning was the norm and mechanized cleaning was a far-fetched concept.
Figure: India Residential Vacuum Cleaner Market Size by Revenue in INR Million, FY’ -FY’ 5
3.500
10,0% 9,0%
3.000 8,0% 2.500
7,0% 6,0%
2.000
5,0% 1.500
4,0% 3,0%
1.000
2,0% 500 1,0% 0
0,0% FY2010
FY2011
INR Million
FY2012
FY2013
FY2014
Growth Rate %
FY2015
HOW COMPETITION IS EVOLVING IN INDIA NON-RESIDENTIAL VACUUM CLEANER MARKET?
• A significant proportion of demand for vacuum cleaners in India is originated through non residential sector such as corporate houses, malls, hotels, airports and hospitals. These services have witnessed huge growth in the past few years. Increase in tourism has boosted the hospitality industry with several budget hotels being setup by as many as 40 hotel chains in the past 5 years. Furthermore, government has approved 300 hotel projects out of which 150 are in the luxury range. Since the hotels and malls prefer mechanized cleaning over manual cleaning to maintain their status-quo, their proliferation has boosted the demand for vacuum cleaners in India. In order to fulfill their corporate social responsibility towards environmental sustainability, emerging business houses in India have also started opting for eco-friendly vacuum cleaners, thereby driving up the growth in the Indian Vacuum Cleaner Market
WHAT IS THE POTENTIAL OF VACUUM CLEANER MARKET IN FUTURE? • The future of vacuum cleaner industry in India looks bright on account of rising GDP per capita, growth in non residential services and change in lifestyles. In FY 2015, this industry recorded revenues worth INR ~ million, growing at a CAGR of ~% over the span of six years from FY 2010 to FY 2015. The growth of the Vacuum Cleaner Industry is expected to accelerate over the forecasted period FY 2016- FY 2020 due to rapid urbanization and smaller households in India. The surge in online shopping portals has made it easier for the consumers to access the diversified product portfolio of the vacuum cleaners, thereby bolstering the Ecommerce sales in this industry. This will augment the revenues in the Indian Vacuum Cleaner Market at a CAGR of ~% from FY 2016 to FY 2020. • • However, the tremendous growth opportunities present in this market are urging new players to enter into this industry. • •
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