Consumer Durable Goods

Consumer Durable Goods

Durable goods are consumer goods that have a long life span (e.g. 3+ years) and are used over time. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, and hence durable goods are typically characterized by long periods between successive purchases.

These durable goods are referred to as Consumer Durables and examples of consumer durable goods include cars, household goods (home appliances, consumer electronics, furniture, etc.), sports equipment, and toys.

Characteristics of Durable Goods

Given below are the characteristics of durable goods:

  • Durables are also known as durable goods or consumer durables
  • Tend to last for at least three years, useful for longer than 3 years
  • Durable goods have a long life span and hold up over time, and do not wear out quickly
  • Do not have to be purchased frequently, the second purchase for durable goods lags time difference
  • Durable Goods are generally sold on a higher margin

Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toys, small tools, sporting goods, photographic equipment, jewelry, motor vehicles and motor vehicle parts, turbines, and semiconductors.

The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners, and washing machines. Instruments such as cellphones and kitchen appliances like microwave ovens are also included in this category.

The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate, and housing demand, greater disposable income, and an overall increase in the level of affluence of a significant section of the population.

The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment are as follows.

Consumer Appliances

A home appliance, domestic appliance, or household appliance is a device that assists in household functions such as cooking, cleaning, and food preservation. While many appliances have existed for centuries, the self-contained electric or gas powered appliances are a uniquely American innovation that emerged in the twentieth century. The development of these appliances is tied to the disappearance of full-time domestic servants and the desire to reduce the time-consuming activities in pursuit of more recreational time. Major appliances, also known as white goods, comprise major household appliances and may include:

  • Kitchen Appliances
  • Refrigerators
  • Washing Machines
  • Air-conditioners
  • Speakers and Audio Equipment
  • Kitchen Appliances / Brown Goods Consumer Electronics
  • Mixers
  • Grinders
  • Microwave Ovens
  • Iron
  • Electric Fans
  • Cooking Range
  • Chimneys

Consumer Electronics

Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications, and recreation. Consumer electronic devices such as smartphones, tablets, and laptops are constantly evaluated against three key criteria: low-cost, high-power efficiency and support of communication standards, Given below are some examples of Consumer Electronics:

  • Mobile Phones
  • Televisions
  • MP3 Players
  • DVD Players
  • VCD Players
  • iPad

Related Links

Creation Date Thursday, 21 June 2012 Hits 25353

You May Also Like

  • Retail Industry: Key Performance Metrics

    Retail Industry: Key Performance Metrics

    You cannot manage what you do not measure and cannot measure what you do not define. Learn the key performance metrics for the retail industry like Sales per square foot, Gross margins return on investment, Average transaction value, Customer retention, Conversion rate, Foot traffic, and digital traffic and Inventory turnover, etc. These metrics are used across the globe by key industry players to track and improve their performance.

  • Challenges in Consumer Goods Industry

    Challenges in Consumer Goods Industry

    There are tens of thousands of general consumer products manufacturers in the United States. They compete to develop the best products at the most affordable price for the greatest number of consumers. Challenges for these organizations include meeting the changing demands of customers, maneuvering through a consolidating market, and executing strategies to grow profitably.​ 

  • Retail Industry: Current Challenges

    Retail Industry: Current Challenges

    Today consumers are choosing multichannel buying experiences and expect that to be a seamless experience. To attract customer loyalty, retailers need to provide an experience that stands out from others. Learn the challenges faced by the retail sector today. Multi-channel sale avenues, changing consumer behavior, technological advances, rising competition, rising frauds, and supply chain management are some of them that require immediate attention.

  • Consumer Goods Sector

    Consumer Goods Sector

    The consumer goods sector is a category of stocks and companies that relate to items purchased by individuals and households rather than by manufacturers and industries. These companies make and sell products that are intended for direct use by the buyers for their own use and enjoyment. This sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles, and electronics. Nestle, Procter & Gamble, and Pepsico are some of the world’s largest consumer goods companies in the world.

  • Retail Industry Sectors: Types of Retail

    Retail Industry Sectors: Types of Retail

    A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. Now retail goods are generally sold in a number of different establishments. Convenience Stores, specialty stores, department stores, supermarkets & hypermarkets, discount stores, multichannel stores are some models used by the retail industry to provide goods to end customers.

  • Fast Moving Consumer Goods

    Fast Moving Consumer Goods

    FMCG or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost, examples include non-durable goods such as soft drinks, toiletries, and grocery items. They generally sell in large quantities, so the cumulative profit on such products can be substantial and these industries often operate on thin margins.

  • Consumer Durable Goods

    Consumer Durable Goods

    Durable goods are consumer goods that have a long life span (e.g. 3+ years) and are used over time. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, and hence durable goods are typically characterized by long periods between successive purchases.

  • Business Dynamics of Consumer Industry

    Business Dynamics of Consumer Industry

    The consumer goods industry is impacted by many dynamics like economic considerations, product considerations, price considerations that impact consumer buying choices. Advertisements, branding, marketing, variety of goods, and technology are the main drivers. Manufactures, retailers, warehousing, and logistics are all part of the supply chain for the consumer goods industry.

  • Trends in Retail Sector

    Trends in Retail Sector

    Markets are continuously changing and to understand the dynamics of any industry it is important to understand what is happening and how the industry market players see the future for the industry. In this article, we will discuss the recent trends witnessed by the retail sector. This document provides insights into major trends identified for the retail sector.

  • Retail Industry – Drivers & Dynamics

    Retail Industry – Drivers & Dynamics

    To succeed in the retail sector, retailers must offer compelling value propositions and be responsive to market dynamics. The continued rise of e-commerce has altered the dynamics of the retail industry in such a way that has forced retailers to drastically reallocate their resources to multi-channel strategies. This article focuses on retail industry drivers and dynamics that provide the reader with a basic understanding of the factors that influence this trade. Understand the business drivers and dynamics of retail industry

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved