Shoppers to buy more TVs online; white goods market may see 50% rise
The white goods market that had a somewhat smaller presence via online channels will now double its GMV. Higher demand for television sets will drive growth, analysts say.
Key Highlights:
- TV sales will drive growth for white goods market via e-tail.
- Online white goods market is estimated to grow 50% YoY.
- White goods market via e-tail stood at $720 million in 2017.
Indians have started buying more domestic appliances, like television sets online. The white goods segment that comprise of large appliances used for routine housekeeping tasks have seen a rise in e-tail, a report by RedSeer Research revealed on Tuesday.
The highest demand in this category was for TV sets, the report said.
“Online white goods market (2017F) is growing at 50% y-o-y- with TV being the category driving growth. Strong sales of exclusives like Vu, Nobel Skiodo etc.- which are high quality and affordable; along with the EMI options led to high performance of TV category,” the report said.
The online white goods market stood at $480 million in 2016. It is now expected to have nearly doubled to $720 million in 2017.
The report revealed that TVs were estimated to be 60% of this million dollar market.
Online channels accounted for 5-7% of sales of appliances in FY16, an earlier report of RedSeer revealed. At the time online purchasing of white goods were only 5% of sales while organised retail accounted for 15% and 80% of sales came from other channels.
The consumer durables are currently taxed at 28% under the Goods and Services Tax regime. This the retailers said will have no impact on sales of items.
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