FY2017 – FY2027 INDIA CONSUMER DURABLE FINANCE MARKET FORECAST AND OPPORTUNITIES
Published : May 2021 www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING
Table of Contents S. No.
Contents
1.
Product Overview
2.
Research Methodology
3.
Executive Summary
4.
Impact of COVID-19 on India Consumer Durable Finance Market
5.
Voice of Customer 5.1. Brand Awareness 5.2. Factors Influencing Purchase Decision
6.
India Consumer Durable Finance Market Outlook, FY2017-FY2027F
6.1.
Market Size & Forecast 6.1.1.
6.2.
6.3.
By Value
Market Share & Forecast 6.2.1.
By Type (Smart Phone, Washing Machine, Refrigerator, Air Conditioner, Laptop, and Others)
6.2.2.
By City (Tier 1, Tier 2, and Tier 3)
6.2.3.
By Region (West, North, South, East)
6.2.4.
By Company (FY2021)
Market Map (Type and Region) © TechSci Research
2
Table of Contents S. No. 7.
Contents India Smart Phone Finance Market Outlook, FY2017-FY2027F 7.1.
Market Size & Forecast 7.1.1.
7.2.
Market Share & Forecast 7.2.1
8.
By City
India Air Conditioner Finance Market Outlook, FY2017-FY2027F 8.1.
Market Size & Forecast 8.1.1.
8.2.
By Value
Market Share & Forecast 8.2.1
9.
By Value
By City
India Refrigerator Finance Market Outlook, FY2017-FY2027F 9.1.
Market Size & Forecast 9.1.1.
9.2.
By Value
Market Share & Forecast 9.2.1
By City
© TechSci Research
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Table of Contents S. No. 10.
Contents India Washing Machine Finance Market Outlook, FY2017-FY2027F 10.1.
Market Size & Forecast
10.1.1. 10.2.
Market Share & Forecast 10.2.1
11.
Market Size & Forecast 11.1.1.
11.2.
14.
By Value
Market Share & Forecast 11.2.1
13.
By City
India Laptop Finance Market Outlook, FY2017-FY2027F 11.1.
12.
By Value
By City
Market Dynamics 12.1.
Drivers
12.2.
Challenges
Market Trends and Developments India Economic Profile © TechSci Research
4
Table of Contents S. No. 15. 16.
Contents Policy and Regulatory Landscape Competitive Landscape 16.1.
Bajaj Finserv Limited
16.2.
HDFC Bank Ltd.
16.3.
Tata Capital Limited
16.4.
State Bank of India
16.5.
ICICI Bank Limited
16.6.
IDFC First Bank
16.7.
Fullerton India
16.8.
Home Credit India
16.9.
Kotak Mahindra Bank Limited.
16.10.
Early Salary
17.
Strategic Recommendations
18.
About us & Disclaimer
© TechSci Research
5
Product Overview
Scope of Report Product of Interest (POI): Consumer Durable Finance
Consumer durable finance helps in funding the purchase of consumer durables. The products for which financial institutions offer consumer durable loan includes household appliances or electronic products such as TVs, refrigerators, air conditioners, washing machines, microwaves, home theatres, laptops and much more. India Consumer Durable Finance Market
Market Segmentation BY TYPE
BY REGION
•
Smart Phone
•
North
•
Washing Machine
•
East
•
Refrigerator
•
West
•
Air Conditioner
•
South
•
Laptop
FY2017 – FY2019
•
Others
Base Year
BY CITY
FY2020
•
Tier 1
Estimated Year
•
Tier 2
FY2021
•
Tier 3
Year Range Review Period
Forecast Period
FY2022 – FY2027
© TechSci Research
7
Research Methodology
Research Methodology
Market Profiling
In-depth secondary research was conducted to determine top players in India consumer durable finance market, overall market size and segmental market size.
Formulating Questionnaire
In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide.
Developing List of Respondents
Data Collection
Data Validation
Data obtained as a result of primary and secondary research was validated through rigorous triangulation.
TechSci conducted interviews with industry experts and industry players for data collection and verification.
List of industry players and industry specialists was developed.
Primary Research
Data Collection
Data Filter & Analysis
Research & Intelligence
Actionable Insights
Business Solution
LinkedIn TechSci Internal Database
✓ Recent Developments ✓ Market Changing Aspects/Dynamics ✓ Government Policies ✓ Conclusion
✓ Identifying Key Opinion Leaders ✓ Questionnaire Design ✓ In-depth Interviews
Primary Research ✓ ✓
Desk Research
Secondary Research ✓ ✓ ✓ ✓ ✓ ✓ ✓
Company Websites Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body Associations, etc.
Data Analysis
The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about India consumer durable finance market.
Company Analysis ✓ Market Participants ✓ Key Strengths
Paid Sources
✓ ✓
Factiva Hoovers
© TechSci Research
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Research Methodology Baseline Methodology
Our dedicated team of industry experts has monitored and analyzed various aspects of India consumer durable finance market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as rising population, increasing disposable income, improvement in standard of living and surging demand for luxurious products. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in India consumer durable finance market.
Methodology Followed for Calculation of Market Size:
•
Market Size by Value: Market size, in terms of Value, for the year FY2021 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as consumer durable finance companies, channel partners, industry experts, and other industry participants.
•
The team interviewed more than 15 consumer durable finance companies, 100 – 120 end use users, and 15 – 20 industry experts and other stakeholders in India consumer durable finance market to obtain the overall market size for FY2017-FY2021, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data for FY2017-FY2027. © TechSci Research
10
Research Methodology
•
Respondents were asked about the current and future market growth rates, market shares by type, by city, by region and by company. Removing the outlier responses, the geometric mean of growth estimates and finance provider wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated based on the response received from other stakeholders.
Methodology Followed for Calculation of Market Shares: •
Market shares by type, by region and by company were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares or revenue generated from various segments of consumer durable finance market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers.
Methodology Followed for Forecasting: •
TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.
•
Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast India consumer durable finance market, TechSci Research used various forecast techniques such as: ✓
Moving Average
✓
Time Series Analysis
✓
Regression Analysis
✓
Econometric and Judgmental Analysis
© TechSci Research
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Research Methodology TechSci Research used its own proprietary forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long-term period to estimate and analyse market demand scenario. It should be noted that the figures compiled are only for the organized consumer durable finance market including the market share data. Partial List of Companies Interviewed ▪
Bajaj Finserv Limited
▪
HDFC Bank Ltd.
▪
Fullerton India
▪
Home Credit India.
▪
Tata Capital Limited
▪
Key Secondary Sources
▪
World Bank
▪
TechSci Research Proprietary Database & Knowledge Repository
▪
Company Annual Reports
ICICI Bank Limited
▪
Industry Magazines
▪
State Bank of India
▪
Industry Reports
▪
IDFC First Bank
▪
News Dailies
▪
Kotak Mahindra Bank Limited. ▪
Credible Paid Databases
▪
Early Salary
© TechSci Research
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Industry Brief According to the report released by TechSci Research, ‘India Consumer Durable Finance Market By Type (Smart Phone, Washing Machine, Refrigerator, Air Conditioner, Laptop, and Others), By City (Tier 1, Tier 2, and Tier 3), By Region, Competition Forecast & Opportunities, FY2027’, the consumer durable finance market in India was valued at USD1110.63 million in FY2021 and is expected to advance with a CAGR of 21.63% in the forecast period to reach USD2704.18 million in FY2027.The increasing penetration of non-banking financial companies (NBFCs) is further providing more lucrative options to the consumers to avail consumer durable finances. Demonetization enabled an increasing number of NBFCs to enter the consumer credit industry, giving more convenient financing options. Thus, the increasing penetration of non-banking financial companies from metros, tier 1 and tier 2 cities and other cities was also a major factor that led to the growth of this market in India. The pursuit of better profits has led banks and NBFCs to extend their unsecured retail segment in recent years, delivering a boost to consumer durables and lifestyle financing. Moreover, the increase in usage of e-banking in India has improved the service quality and strengthened the finance sector as the electronic payment has benefitted in increasing customer satisfaction level, enhanced productivity, reduced cost of financial operations, etc. Consumers are able to keep track records of their transactions through e-banking services. The advantages generated by e-banking services have determined an accelerate developing of this industry over the entire world. Furthermore, the factors such as instant money transfer, anytime anywhere usage benefit reduced fraud and complete security, etc., are boosting this sector in India. The government of India has also taken initiatives to promote electronic banking among people, such as, the Digital India campaign, which was launched in order to ensure digital literacy, digital resources such as internet connectivity, etc. On the basis of type the India consumer durable finance market is categorized into smart phone, washing machine, refrigerator, air conditioner, laptop, and others. Among them, smart phone is the leading segment in the India consumer durable finance market and is expected to continue its dominance over the forecast period on account of increasing per-capita income in the country. With the growing economy, consumers are able to spend more on their day-to-day requirements. Smartphones have now become a necessity. The internet penetration is one of the main reasons for the boost in the growth of this market. Post demonetization in November 2016, the use of digital payment solutions such as e-wallets and biometric-based payment systems has increased dramatically which also acted as a factor in the growth of this market. Furthermore, the shift in consumer behavior, who are now preferring contact-less experiences and maintaining social distancing, also led to the increase in sale of smart phone. Some of the major players operating in the India consumer durable finance market are Bajaj Finserv Limited, HDFC Bank Ltd., Fullerton India, Home Credit India., Tata Capital Limited, ICICI Bank Limited, State Bank of India, IDFC First Bank, Kotak Mahindra Bank Limited., and Early Salary. Consumer durable finance companies are shifting towards digital banking to remain competitive in the market. “Increasing urbanization, the growth in number of double income households, and a busy work life are further contributing towards change in lifestyle pattern. There is a clear emergence of need and demand for additional TV, laptop, mobile phones, Wi-Fi, mobile accessories and vacuum cleaner. There is a set of consumer appliances and home appliances where demand picking up. Digital penetration is rapidly increasing as digital access becomes more inexpensive. This increased consumer awareness of the product and increased spending on electronics and home appliances. Consumers are also more aware of various finance options available for consumer durables now, owing to rising internet penetration that causes mass awareness. Moreover, rising urban population has given immense opportunities for manufacturers to cater to the demand for consumer durables in India. Thus, changing consumer trend in India will drive the consumer durable finance market of India during the forecast period.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm. © TechSci Research
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Sample Data - Snapshot India Consumer Durable Finance Market Size, By Value (USD Million), FY2017-FY2027F CAGR FY2022E-FY2027F By Value: xx%
CAGR FY2017-FY2021 By Value: xx%
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022E
FY2023F
FY2024F
FY2025F
FY2026F
FY2027F
Value (USD Million) India Air Conditioner Finance Market Share, By City, By Value, FY2017-FY2027F
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022E FY2023F FY2024F FY2025F FY2026F FY2027F
Tier 2 20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
Tier 1 30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Tier 3 50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
India Laptop Finance Market Share, By City, By Value, FY2017-FY2027F
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022E FY2023F FY2024F FY2025F FY2026F FY2027F
Tier 2 20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
20.00%
Tier 1 30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Tier 3 50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
50.00%
© TechSci Research
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Report Name: INDIA CONSUMER DURABLE FINANCE MARKET FORECAST AND OPPORTUNITIES FY2017 – FY2027
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About Us & Disclaimer
TechSci Research is a global market research and consulting company with offices in the US, UK and India. TechSci Research provides market research reports in number of areas to organizations. The company uses innovative business models that focus on improving productivity, while ensuring creation of high-quality reports. The proprietary forecasting models use various analyses of both industry-specific and macroeconomic variables on a state-by-state basis to produce a unique ‘bottom-up’ model of a country, regional and global industry prospects. Combined with the detailed analysis of company activity and industry trends, the result is a uniquely rich evaluation of the opportunities available in the market.
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