Indian Consumer Electronics Industry: Key Growth Drive For Manufacturing & Retailing

June 15, 2021

By Xtracap India

The Indian appliance and consumer electronics (ACE) industry reached a respectable market size of INR 76,400 crs in 2019 and is expected to double to INR 1.48 lakh crs by 2025, which results in a CAGR of ~9%.

The Indian middle & upper class are at the helm of this consumption growth story with 10 million households holding majority of the consumption GDP of the country. They would have seen an increased savings in the past 12-14 months. Coupled with heightened consumer awareness, increased consumption capacity, progressive change in lifestyle and easy access to the market has made it easier for the industry to grow at such a fast pace. The technological advancements and innovations have resulted in affordable pricing and increased the options available with the end consumer.

The brands are now aiming to penetrate further with much ease due to the faster than anticipated digitization of Indian market. According to Retailers Association of India (RAI), sales of consumer electronics increased by 2% in September 2020 and 8% in October 2020, as compared with same months in the last year.

Market for durables like refrigerators and consumer electronic goods is likely to witness an increased demand in the coming years. One significant consumer behavioral change that India is witnessing over the past is that consumer electronics is no longer once in life-time purchase. In today’s time, consumer durables have become more of a lifestyle choice. The other redefining shift in the consumption pattern is emergence of the rural markets as new consumption hotspots.

Ultimately, the consumer electronics market in India looks primed for growth. In terms of the distribution channels for this segment is concerned, this category is e-commerce’s anchor GMV contributor. However, brands increasingly realize that multiple brand outlets play a critical role in reaching out to more households. The brands must balance between the discount-led pricing of e-commerce and sustainability of the pricing for multi-brand outlets. E-Commerce dominates 33% of consumer electronic sales in developed markets and the trend will be no different in India. However, the Indian retail landscape and consumer behavior will promote Omni-channel approach, wherein the consumer can research online and buy offline as touch & feel remains still an important purchase experience of an Indian consumer.

The above factors will lead to complete makeover of retail strategy. The following are some measures through which the distributors and dealers can optimize their businesses to service the ever-increasing demand.

You are a supplier/distributor for the Consumer Electronics Industry

With some prudent financial and operational measures, you can benefit from the increase in demand that is expected from the consumer durables market. What you have to do is....

Align your inventory with what consumers are buying

Smart home products and IoT devices are going to rule the industry boost. Products like smartphones, smart TVs, and wearables are high-growth categories. By aligning your inventory with these categories, you can ensure increased month-on-month sales growth in your business exponentially. Xtracap Fintech has a Distributor - Dealer financing solution for the brands which may re-define channel financing and enable the distributors to increase the liquidity in the channel and transfer of part risk to a financial institution. 

Gain from the increasing competition in the consumer electronics market

The lucrative space available in the consumer electronics industry is attracting more investment from multinational manufacturers. As an existing supplier/distributor, you stand to gain from this increase in market competition. Explore new supply deals and expand your retail network to grow your business. Xtracap Fintech provides the extra capital required to expand your business to keep at pace with the consumer demand.

Finance your market expansion strategy with appropriate Channel Financing

Long gone are those days when banks were the only destination for businesses in order to satiate their financing needs. Now the businesses have started looking for alternative ways of business finance in a bid to break free from the time-consuming loan processing of traditional lenders. Supply chain finance or a much easier and tech-focused last-mile channel financing has emerged as a viable alternative to short-term small business loans as it fulfils the same basic requirements without accruing debt for the small business owner.

Invoice financing as a part of channel financing is helping small businesses in realizing their growth potential on the power of their monthly sales data . As a supplier/distributor for the consumer electronics industry, you stand to benefit exponentially from invoice financing.

Here is how it can work out for you.

- Get in touch with Bridge2Capital to sign up for a 100% paperless technology focused channel financing solution.

- Share your GSTN APIs to enable us to access the sales potential of your dealers.

- Introduce the dealers shortlisted by us to Bridge2Capital mobile app via a SMS/ WhatsApp link.

- Bridge2Capital will do creditworthiness assessment of your dealer and assign an exclusive credit limit for your purchases.

- Now every time the dealer buys from you, he/she will send your invoice to us and we will make the payment to you. The dealer can return the funds to Bank In 30-60 days cycles.

- In order to increase your dealer's purchasing capacity, you can provide subvention of interest for the first 15/30 days. You will get your payment receivable immediately and the dealer gets credit without any cost to him/her.

So, are you ready to leverage your position as a vendor in the growing consumer electronics industry? Get in touch with us today, at for financial advice and sign up for the Bridge2Capital Channel Financing program.