Synopsis
The Indian tech and durables sector recorded a 6% growth in Q4 2024, reflecting evolving consumer preferences towards energy efficiency and advanced technology. Smaller cities are driving this trend, outpacing metros significantly. Emerging categories, particularly air purifiers, are experiencing remarkable growth, indicating a shift in consumer priorities towards sustainable home solutions.Key Takeaways
- 6% growth in the tech and durables sector in Q4 2024.
- Smaller cities are outpacing metros with 10% growth.
- Premiumisation trend is evident across various consumer segments.
- Emerging categories like air purifiers show growth over 100%.
- Strong consumer demand anticipated post favorable tax policies.
New Delhi, March 12 (NationPress) The Indian tech and durables sector has maintained its growth trajectory, achieving 6 percent volume and value growth in Q4 2024 compared to the same period in 2023, as per a new report released on Wednesday.
Shoppers are increasingly opting for value-oriented decisions, emphasizing energy efficiency, durability, and advanced technology when making purchases.
This trend is reflected in the rising demand for high-efficiency appliances, with 4-star and 5-star ACs increasing by 29 percent and larger front-loading washing machines (8kg+) growing by 39 percent, according to NielsenIQ (NIQ), a premier consumer intelligence firm, in partnership with GfK.
The premiumisation trend is not limited to major cities; consumers in smaller cities are also gravitating towards high-quality, feature-rich appliances and electronics.
Notably, growth in tier 3 cities (with populations between 1-5 lakh) is outpacing that of metros and tier 2 cities, with a remarkable 10 percent growth in Q4 2024, compared to 7 percent in tier 1 and 6 percent in tier 2, as stated in the report.
“The expansion of the tech and durables sector across various categories, including health, entertainment, kitchen appliances, and personal grooming, signifies a growing consumer preference for modern, convenience-oriented living,” remarked Sharang Pant, Commercial Director, Tech and Durables, India, NIQ.
Emerging categories such as air purifiers have seen growth rates exceeding 100 percent. Additionally, categories like dishwashers and built-in kitchen solutions have expanded by 30 percent, indicating a shift towards more integrated, sustainable home solutions.
The year has shown consistent value growth, characterized by varied performance across categories, with major domestic appliances (MDA) and small domestic appliances (SDA) leading the market, the report indicated.
In the entertainment segment, a 3 percent value growth in large UHD TVs (65 inches and above) highlights ongoing consumer interest in enhanced, immersive viewing experiences.
The consumer movement towards investing in technologically advanced products is not merely about luxury; it also encompasses long-term value, sustainability, energy efficiency, smarter consumption, and concerns about health, efficiency, and the environment, noted Pant.
Positive economic prospects are anticipated, with strong consumer demand likely owing to favorable tax policies outlined in the Union Budget for FY 2025-26.
