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Durables Consulting - Tata Strategic

India, with a population of 1.24 billion people and a strong and increasing middle class, is one of the largest potential markets for consumer goods. Demand for consumer durables has grown much faster in developing markets like India and China as compared to developed markets in the last few years.

Research by Tata Strategic indicates that with continued growth of the Indian economy in coming years, share of spend on non-food items in the overall consumer spend pie is expected to increase. And durables, being the biggest non-food spend categories is expected to benefit from this trend.

The consumer durables market in India in FY12 is estimated at USD 46 Bn and is expected to reach USD 86 Bn by FY17. Positive shifts in consumer demographics are expected to drive this demand surge in India. While on one end these shifts have led to the growth of newer categories (e.g. LED TVs, tablets, laptops, split air-conditioners, smart phones, etc), they have also enabled consumers at the lower end of the income pyramid to become first time users (e.g. mobile phones, refrigerators, etc.). Low penetration levels, increased per capita incomes and access to consumer finance have made consumer durables an attractive growth area. In addition to urban India, rural markets too will drive growth of the sector.

In addition, the home & interior products market in India is estimated at USD 18 Bn in FY12 and is expected to reach USD 32 Bn by FY17. The market includes homeware (comprising of furnishing, furniture and home décor), the bath industry (comprising sanitaryware, faucets, bath fittings, wellness), tiles and modular kitchen and kitchen products. The market is seeing an increasing renovation demand and premiumization driven by the changing consumer demographics.

Tata Strategic has worked with some of the leading domestic and international durable companies on a range of challenging projects. In the area of strategy formulation, we have worked with clients on market assessment, India entry strategies, growth strategies, turnaround strategies and micro market strategies for rural India. On the operations side we have worked with clients on competitiveness improvement through integrated cost reduction programs, manpower rationalization, route-to-market, sales and operations planning and logistics optimization projects. We have partnered our clients in implementation as well.

Tata Strategic’s core competencies include providing creative strategy advice and developing high impact implementable solutions customized to client needs. Our deeply ingrained experience in the Indian market coupled with our ability to provide unique insights enable us to offer an unmatched capability to our clients.