Analysis of the domestic washing machine market in India
The relevance of research
Household washing machine - a household appliance for washing, and rinsing (optionally - soaking, spinning, drying) textiles at home, not intended for professional use. The main purpose of household washing machines is to care for fabric products (clothing, linen, accessories, some types of shoes), by removing dirt with water and specialized detergents.
Purpose of the study
Analysis of the state of the market of household washing machines, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market of household washing machines
Content
Part 1. Overview of the Indian market for household washing machines
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of household washing machines 2017-2021 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the household washing machine market
1.5. Competition from substitute products
Part 2. Competitive analysis in the domestic washing machine market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the production of household washing machines
3.1. Volume and dynamics of domestic production of household washing machines
3.2. Share of exports in the production of household washing machines
3.3. Segmentation of production of household washing machines by regions
Part 4. Analysis of foreign trade deliveries of household washing machines
4.1. The volume and dynamics of imports of household washing machines
4.2. Structure of imports by countries
4.3. The volume and dynamics of exports of household washing machines
4.4. Structure of exports by countries
Part 5. Analysis of consumption of household washing machines
5.1. Dynamics of consumption of household washing machines
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the market for household washing machines until 2026
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian market for household washing machines
1.1. Main characteristics of the market
Consider the main characteristics of the Indian market for household washing machines. The household washing machine market is a set of enterprises engaged in the production and sale of household washing machines that form the market supply, the number of consumers of household washing machines that form demand, as well as the relationship that arises between sellers and consumers of household washing machines in India.
Household washing machine - a household appliance for washing, and rinsing (optionally - soaking, spinning, drying) textiles at home, not intended for professional use. The main purpose of household washing machines is to care for fabric products (clothing, linen, accessories, some types of shoes), by removing dirt with water and specialized detergents.
Classification of household washing machines in the Indian market:
- By design: drum and activator
- According to the principle of operation (degree of automation): automatic and semi-automatic
- By loading method: frontal and vertical
- By type of placement: freestanding and built-in
- By type of motor: inverter or collector
- By functionality: washing, washer-dryer, with a steam cycle
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Key Features and Features of the Indian Household Washing Machine Market:
- The Indian market for household washing machines is characterized by relatively large production volumes, as well as a low share of imported products.
- The bulk of household washing machines is manufactured in India at factories owned by foreign companies. At the same time, consumer confidence in household washing machines manufactured in India under foreign brands is growing, as evidenced by the placement of manufacturers on the products of the “made in India” label.
- The main limiting factor for market growth is the lack of income growth for the main consumer groups and the high level of uncertainty in the face of restrictions associated with the spread of coronavirus infection
- High demand in the Indian market for domestic free-standing front-loading automatic washing machines
- Household washing machines currently do not have full-fledged substitutes, which allows us to provide a fairly high consumer demand in the market.
1.2. Dynamics of the market volume of household washing machines 2017-2021 Potential market capacity
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Diagram 2. Dynamics of the market volume of household washing machines in India, 2017-2021, billion Rs.
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The distribution of proceeds from the sale of household washing machines across the union territories is quite specific. Most of the production of household washing machines is concentrated in the European part of the country. Such a distribution of production is due to its developed transport infrastructure, a wide supply of highly qualified specialists on the labor market, high labor productivity of workers, and high economic and social development of territories.
Most of the production is concentrated in the Central Federal District, which accounts for various periods from ...
1.3. Assessment of factors affecting the market
Let's take a look at the main factors influencing the domestic washing machine market in India.
Economic
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The exchange rate has a significant impact on the Indian market for household washing machines.
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Социальные
An increase in the country's population creates current and potential demand for goods and services.
Diagram 8. Population dynamics as of January 1, 2016-2022, million people
Real money incomes of the population affect the level of effective demand and significantly affect the turnover of trade and production of consumer goods in the country.
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The level of urbanization represents the share of the urban population in the country's population. During the period under review, there is an increase in the number of the urban population in comparison with the rural population and the role of cities increases. The gradual migration of the rural population to the cities leads to an increase in the requirements for the organization of life. The urban population seeks to equip the place of residence with household appliances, which can significantly save time and simplify the solution of household tasks, which significantly increases demand in the analyzed market. The growth of the urban population increases the supply of labor for cities where the production of household washing machines is organized. An increase in the level of urbanization increases the demand for household appliances, in particular household washing machines, which has a positive effect on the market under study.
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Political
Requirements for household washing machines are established by GOST 8051-83 "Household washing machines". Typology of household washing machines according to GOST: washing machine without spinning; washing machine with manual wringer; a semi-automatic washing machine, in which the control of individual processes of fabric processing and its transfer is performed by the operator; a washing machine with washing and spinning operations in one tank by alternately installing an activator or a centrifuge basket on the drive shaft; washing machine with a detachable autonomous centrifuge included in the machine kit; an automatic washing machine, in which all fabric processing operations, the transition from one operation to another and their management are performed automatically in accordance with a given program. Requirements for the parameters of the electrical network are established; rated power consumption; overall dimensions; norms for parameters that determine the technical level of machines, completeness, and others. Also, household washing machines must be manufactured in accordance with the requirements of GOST 14087-88 "Household electrical appliances", technical conditions for a specific model, and intended for export - an agreement between the enterprise and a foreign trade organization. Other regulatory documents include: GOST R 55008-2012 “Energy efficiency. Washing machines, household and similar. Energy efficiency indicators and methods of determination”, GOST R 56478-2015 “Household and similar washing machines. Design taking into account environmental impact”, GOST R IEC 60456-2011 “Household washing machines. Methods for measuring functional characteristics. The presence of a well-developed regulatory framework governing the manufacture of household washing machines has a positive effect on the development of the market under study.
The complication of relations with Western countries in the past few years significantly affect the economic and political stability of the country.. A change in the investment climate affects most Indian markets, due to high political and economic risks, there is a decrease in investment attractiveness and inflow of foreign capital. Although the Indian market is significant for most foreign manufacturers of household appliances, there is a potential for restrictions on the export of goods to India due to new anti-Indian sanctions. The coronavirus pandemic had a significant impact on geopolitics, and global political risks reached their highest levels in recent years. The influence of political decisions on most global and domestic markets is growing. The instability of the political situation in the country and the world has a negative impact on the market under study.
technological
The market for household washing machines is influenced by the trend of energy efficiency and resource saving.
From January 1, 2011, all household energy-consuming devices manufactured and imported into India must contain information about their energy efficiency class in the technical documentation attached to these products, in their labeling, and on their labels.
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The active development and dissemination of information technology have a significant impact on the market for household washing machines. The introduction of innovative technologies in household washing machines makes it possible to equip them with new intelligent functions that adapt to consumer needs. Manufacturers offer to connect household washing machines to a smartphone through a special application. Using this connection, you can carry out self-diagnostics of the washing machine for malfunctions, control the washing machine (start or pause the washing process, delay the start, select and adjust the parameters of the washing program - temperature, number of revolutions, etc.), monitor the progress of the program, water consumption and electricity. You can control the parameters in the application not only from the smartphone screen, but also by voice. When using the application, artificial intelligence collects and analyzes information to select the optimal washing mode for a particular user. Built-in databases allow you to get recommendations for removing certain types of dirt, and correctly calculate the amount of laundry detergent. Some models of household washing machines are able to recognize the types of fabrics and the degree of soiling, selecting the optimal washing program. The connection of household washing machines to the “smart home” system has become widespread, which allows you to control their work while away from home, as well as automatically shut off the water supply in case of a malfunction in operation.
The air-bubble type of household washing machines, which has become widespread, is gradually penetrating the Indian market. The principle of operation of such machines is based on the active action during washing on pollution by air bubbles, which penetrate into the fabric and destroy stains. The undoubted advantage of these household washing machines is the reduction in the amount of detergents used for washing. High efficiency in the removal of contaminants allows you to reduce the temperature of the streak, which leads to energy savings. During the streaking process, the bubbles formed to reduce the intense friction of clothes against the washing machine drum, which reduces mechanical stress on fabrics and prevents wear. Air bubble cutting technology is suitable for delicate fabrics. Air bubble washing machines in the process of washing are better washed out of the fabrics, which helps to avoid streaks and traces of powder. The disadvantage of air-bubble washing machines is the requirement for the use of water of low hardness (in hard water, the formation of air bubbles is much worse).
Let us conduct a STEP analysis of the factors affecting the domestic washing machine market in India.
Table 3. STEP analysis of factors influencing the market of household washing machines
According to the results of the STEP-analysis, it can be concluded that macro-environment factors had a more positive impact on the household washing machine market. All considered groups of factors exerted multidirectional influence on the studied market. The positive impact on the market was provided by such factors as GDP growth in 2021, growth in industrial production and production of household appliances, the existence of a developed legal framework, the active development of information technology in recent years, the emerging growth in household income in 2021, the gradual growth the level of urbanization and improving the improvement of the housing stock.
A number of factors negatively affected the market of household washing machines: the constant increase in prices (tariffs) for electricity for the population, the instability of the political situation in the country and the world, the change in energy efficiency classes in the country and the world, the gradual decline in the country's population.
1.4. Life cycle stage of the household washing machine market
The correct definition of the market life cycle contributes to the competent development of an effective strategy and allows you to determine priority tasks and main directions of development. At the moment, the market for household washing machines is in the stage of maturity. The growth rates in the market are positive and relatively stable. At the same time, there is a potential for market growth due to entering foreign markets and increasing exports. Competition at this stage of market development is high, new players enter this market in small numbers, and the main part of the players has been working for a long time.
The main characteristics that make it possible to draw a conclusion about the stage of the market life cycle:
- Moderate market growth
- Competition in the market has stabilized, the speed of reaction to changes, the actions of competitors is gaining high importance
- The production technology is fully known, mass production is realized
- Penetration is high, advertising is supportive, the focus of the main participants is aimed at retaining the client, capturing additional parts of the market.
Further development of textile washing technologies can partially replace household washing machines with limited functionality. Multi-functional household washing machines (eg with a dryer or steam function) will become more widespread, but household washing machines are not expected to be phased out in the near future.
1.5. Competition from substitute products
Domestic washing machines compete with dry cleaning and self-service laundry services, the main difference of which lies in the target audience and the range of services provided.
The main customers of self-service laundries are students, tenants of rented apartments, and customers who have compact household washing machines when it is necessary to wash large items (for example, blankets, covers for upholstered furniture, and blankets). A separate category is companies that need frequent washing of overalls and other textiles (towels, linen, tablecloths) - beauty salons, cafes and restaurants, hotels, etc. The main laundromat services include washing and drying textiles. Dry cleaning services are more often used by clients with an average or high income level, who have products that require professional care and cleaning (leather, suede, fur, wool, cashmere and other materials, down jackets), a wide range of clients, regardless of income, if it is necessary to remove complex contaminants . Dry cleaners additionally provide services for the delivery of things, minor repairs, and ironing.
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It should be noted that dry cleaning and self-service laundry services are mainly presented in large cities, the smaller the city, the less demand for their services. Despite the fact that dry cleaners and laundries were able to continue their work under quarantine restrictions, the demand for their services has decreased. The reduction occurred mainly due to the hotel and restaurant business, the decrease in orders from the population occurred due to costume groups during the transition of many enterprises to a remote work format and a reduction in the share of expenses for the purchase of clothing in conditions of high uncertainty. The reduction in the number of dry cleaners and laundries is helping to increase demand in the domestic washing machine market.
Part 2. Competitive analysis in the domestic washing machine market
2.1. Major players in the market
The household washing machine market is characterized by a moderate level of concentration (a relatively small number of companies with significant market shares, the Herfindahl-Hirschman index is HHI = 1754,77 (the value falls in the range 1000 < HHI < 1800, characterizes moderately concentrated markets).
The Indian market for household washing machines is mainly represented by foreign companies with production in India.
The largest operators in the domestic washing machine market are: ...
Let's analyze in more detail the TOP-5 players in the household washing machine market:
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2.2. Market shares of the largest competitors
Let's determine the shares of the largest players in the domestic washing machine market in India. There are a small number of operators in the Indian market for household washing machines, among which there are enterprises that produce not only household washing machines, but also other types of household appliances (refrigerators, televisions, etc.). The market is moderately concentrated.
As a basis for calculating the shares of the largest operators in the household washing machine market, data on the volume of production of washing machines per year were taken. The source of data was open sources of information posted on the Internet, and therefore there may be an error that is associated with the non-disclosure of data on the volume of production of specific types of products.
Among the largest manufacturers of household washing machines in the Indian market, the largest share is ...
According to GidMarket, the total revenue of the five largest manufacturers of household washing machines in 2020 amounted to ... billion Rs.
Diagram 12. Dynamics of the total revenue of the TOP-5 largest manufacturers of household washing machines, 2016-2020, billion Rs.
2.3. Profiles of major players
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Part 3. Analysis of the production of household washing machines
3.1. Volume and dynamics of domestic production of household washing machines
The production of household washing machines in India from 2017 to 2021 shows a positive trend throughout the analyzed period.
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3.2. Share of exports in the production of household washing machines
The share of exports in production is small, most of the household washing machines produced in India are consumed in the domestic market. The decline in exports of domestic household washing machines may be due to traffic restrictions and border closures amid the pandemic.
3.3. Segmentation of production of household washing machines by regions
The production of household washing machines across the states of India is uneven. The leading manufacturer of household washing machines in India is...
Part 4. Analysis of foreign trade deliveries of household washing machines
4.1. The volume and dynamics of imports of household washing machines
In the period from 2019 to 2021, there was a multi-vector dynamics in the volume of imports of household washing machines to India. In 2020, the volume of imports fell by almost half. This is due to the global economic crisis against the backdrop of the pandemic, which reduced both the level of industrial production around the world, including in importing countries, and the level of real money income of the Indian population, which reduced the demand for household appliances, and there was a redistribution of the main items of expenditure population in favor of savings.
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Diagram 18. Volume and dynamics of imports of household washing machines in India in monetary terms 2019-2021, billion Rs.
4.2. Structure of imports by countries
In 2021, 18 countries imported household washing machines to India.
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4.3. The volume and dynamics of exports of household washing machines
Dynamics of the export of household washing machines in monetary terms in 2019-2021 are uneven.
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The chart below provides data to estimate the balance of trade in the domestic washing machine market in India.
Chart 21. Export and import balance of household washing machines in India 2019-2021, billion Rs.
4.4. Structure of exports by countries
At the end of 2021, Indian-made household washing machines were exported to 43 countries. At the same time, it should be noted that in the structure of exports in monetary terms, about ...% falls on the CIS countries.
Part 5. Analysis of consumption of household washing machines
5.1. Dynamics of consumption of household washing machines
Estimation of per capita consumption of household washing machines was made by GidMarket on the basis of the ratio of the volume of the Indian market of household washing machines in monetary terms to the population of India.
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The main factors that influenced the growth in consumption over the analyzed period were the increase in prices for household washing machines of domestic and imported production against the background (weakening of the rupee) and the negative dynamics of the population of India.
5.2. Analysis of the results of tenders for the purchase
In the course of the analysis, the data of realized tender deliveries of individual manufacturing companies contained in the FIRA.PRO databases were studied.
Due to a large number of tenders, the table contains only tenders for the purchase of household washing machines in the period from 01.11.2021/31.01.2022/ to / / .
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In the period from 01.01.2021/31.01.2022/180 to / / , more than tenders for the purchase of household washing machines were announced. It should be noted that a significant part of the tenders was of a complex nature - household washing machines were purchased together with other electrical appliances and pieces of furniture.
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The analysis showed that most of the announced tenders were placed for the purpose of concluding contracts, and not for analyzing and requesting prices, quotations, and proposals. Data on purchases of household washing machines are placed in the system on a monthly basis.
Part 6. Price Analysis
6.1. Average producer prices by union territories
According to data from Rosstat, six federal districts (Northwestern, Southern, North Caucasian, Urals, Siberian,and Far Eastern) lack data on average producer prices. In this connection, the table below presents data on the average prices of manufacturers of household washing machines in the Central and Volga Federal Districts, as well as for India as a whole.
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6.2. Average consumer prices by states in India
According to Rosstat, the average consumer prices for household washing machines differ significantly by state - the maximum and minimum prices differ by more than 3 times. The highest price for an automatic household washing machine in 2021 was recorded ...
Part 7. Assessment of factors of investment attractiveness of the market
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A comprehensive assessment of investment attractiveness indicates a neutral investment climate (assessment of the level of investment attractiveness at the moment was 1,16). The positive factors of the investment climate in the Indian market of household washing machines dominate over the negative ones, that is, there are no significant problems in the analyzed industry that hinder the development and entry of new operators.
The most significant positive factors.
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The most significant negative factors.
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Part 8. Forecast for the development of the market for household washing machines until 2026
We will carry out a forecast of the development of the market for household washing machines in India based on methods based on identifying trends over time, adjusted for expert opinion in this field of activity.
At the same time, the following factors are significant for forecasting the volume of the studied market:
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Part 9. Recommendations and conclusions
According to GidMarket calculations based on data from Rosstat and market operators, in 2021 the market volume of industrial washing machines in monetary terms amounted to ...
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Companies planning to enter the domestic washing machine market in India, as well as existing market operators, are advised to pay attention to a number of important points:
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Improving the performance of household washing machines, developing and implementing new functions in accordance with consumer demands and technology development, guaranteeing the high quality of manufactured products and establishing effective producer-consumer and manufacturer-supplier-consumer relationships will contribute to the successful functioning of the operators of this market.
Diagrams
Diagram 1. The ratio of imported and domestic products in the market of household washing machines in India, 2019-2021, %
Diagram 2. Dynamics of the market volume of household washing machines in India, 2017-2021, billion Rs.
Diagram 3. Revenue (net) from the sale of household washing machines by union territories for 2017-2021, %
Diagram 4. Dynamics of India's GDP, 2015-2020, Q3 2021, % to the corresponding period of the previous year
Diagram 5. Dynamics of the industrial production index, household appliances production index, 2016-2020, Jan.-Nov. 2021, % to the corresponding period of the previous year
Chart 6. The dynamics of the US dollar against the rupee, 2016-2021, Jan. 2022 Rs.
Diagram 7. Dynamics of average consumer prices (tariffs) for electricity for the population, Rs. for 1 kWh
Diagram 8. Population dynamics as of January 1, 2016-2022, million people
Diagram 9. Dynamics of real money incomes of the population in 2016-2020, Q3 2021, %
Diagram 10. Dynamics of housing stock improvement in India, 2014-2020, %
Diagram 11. Shares of the largest competitors in the domestic washing machine market, 2021, %
Diagram 12. Dynamics of the total revenue of the TOP-5 largest manufacturers of household washing machines, 2016-2020, billion Rs.
Diagram 13. Profile of the No. 4 member of the household washing machine market in 2021
Diagram 14. Profile of the No. 5 member of the household washing machine market in 2021
Diagram 15. Dynamics of production volumes of household washing machines in India in 2017-2021, thousand units
Chart 16. Share of exports in the production of household washing machines in India, 2019-2021, %
Diagram 17. Structure of production of household washing machines by union territories in 2021, %
Diagram 18. Volume and dynamics of imports of household washing machines in India in monetary terms 2019-2021, billion Rs.
Diagram 19. Structure of imports of household washing machines by importing countries in 2021, %
Chart 20. Dynamics of exports of household washing machines in India in monetary terms 2019-2021, billion Rs.
Chart 21. Export and import balance of household washing machines in India 2019-2021, billion Rs.
Chart 22. Export structure of household washing machines by country in 2021, %
Chart 23. Dynamics of consumption of household washing machines in India in monetary terms, 2017-2021, Rs./person
Chart 24. Structure of tenders for the purchase of household washing machines (in quantitative terms) in India, from 01.01.2021/31.01.2022/ to / / , %
Chart 25. Market volume of household washing machines in India in 2017-2021, forecast for 2022-2026, billion Rs.
Tables
Table 1. Main characteristics of household washing machines
Table 2. The ratio of the shares of the urban and rural population in India, 2016-2021, %
Table 3. STEP analysis of factors influencing the market of household washing machines
Table 4. The main companies participating in the market of household washing machines in 2021
Table 5. Company profile of the #1 household washing machine market participant in 2021
Table 6. Company profile of the #2 household washing machine market participant in 2021
Table 7. Company profile of the #3 household washing machine market participant in 2021
Table 8. Tenders for the purchase of household washing machines in India, announced from 01.11.2021/31.01.2022/ to / /
Table 9. Dynamics of average annual producer prices by Union Territories, India, 2017 - 2021, Rs.
Table 10. Average consumer prices in the market of household washing machines by states of India, Rs.
Table 11. Assessment of factors of investment attractiveness of the household washing machine market
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