How local manufacturers are redefining home appliances for Indian Consumers
The home appliance sector in India has witnessed rapid expansion with a projected value of $20 billion by 2025. Due to changes in consumer demand, local manufacturers are now making efforts to offer low-priced, yet durable and quality products. In the past, India depended on foreign nations to import critical parts which inevitably increased production costs and impacted the life span of the goods.
Currently, the essentials are being produced locally by low-end Indian brands bringing down the prices while increasing the durability of the goods. These parts are manufactured to withstand Indian weather conditions, which include heat and moisture as well as power fluctuations. The focus on local design is changing the paradigm, by erecting barriers to competition and offering local consumers reasonably priced durable appliances designed to withstand Indian weather.
In-House Parts Manufacturing: A Game Changer
The most important aspect of local manufacturing is the ability to manufacture appliance parts in-house and reduce dependency on imports. In earlier times, many brands relied on foreign suppliers for components like motors, compressors, and circuits, which often led to delays, higher costs, and inconsistent quality. Through local manufacturing, local Indian brands can better control the quality of material and workmanship. This enables designing parts with emphasis on specific local conditions. For example, motors in Indian coolers are often built to handle frequent voltage surges and power outages. This makes them longer lasting, less likely to break down, and seldom repaired. This increases the life of the product and reduces the cost of ownership for consumers, hence locally manufactured home appliances can be considered an affordable and reliable option.
Local Manufacturing for Cost-Effective Goods
One of the main benefits of producing goods locally is that it minimizes the expenses incurred than imported parts. Imported parts have extra costs which include the cost of raw materials, cost of transportation, and tariffs that push the price of the end product up. On the other hand, parts manufactured locally are less expensive which enables manufacturers to reduce the prices of their goods to consumers. Similarly, local manufacturers do not suffer the cost of third-party suppliers’ margins on their products translating to lower costs of appliances even in very price-sensitive economies like India. As a result, local manufacturers can provide similar or even better quality at a lower price than foreign manufacturers. For Example, a domestic washing machine manufacturer, that makes its motors and control boards, is less likely to have higher prices for its products than a foreign brand, that is not integrated and has to import these parts, making it more advantageous for the brand at the lower and middle price segments where the price to value ratio is important in the consumer’s decision-making process.
Supporting the Indian Economy
Localization also benefits the general Indian economy by creating jobs and developing technical skills. As the small brands expand their capacities to manufacture more products, employment is generated throughout manufacturing, assembly, and at times even research and development. Furthermore, the need for a local material and component supplier helps spur the advancement of metals, plastics, and electronics industries with a ripple effect around different sectors of the country’s economy.
This is because home appliance brands aiming at local production resonate with the self-reliance of Aatmanirbhar Bharat, which forms the new thrust by the government to curtail import dependency and increase indigenous production capabilities. It also stabilizes the supply chains and makes them less susceptible to disruptions that happen globally, such as during the COVID-19 pandemic.
Customization for Indian Needs
Local manufacturers are more adept at creating products that cater to the specific preferences of Indian consumers. For example, geysers manufactured by Indian brands typically incorporate advanced protective mechanisms to counter voltage surges and ensure a steady supply of hot water even in the existence of power outages. These geysers are designed to be energy-saving, which is perfectly suited for households that frequently use hot water. On the other hand, Indian-manufactured ceiling fans are optimized for Indian weather conditions, with larger blade sizes and more efficient motors for maximum air circulation even in large or poorly ventilated rooms. Additionally, these fans are energy-saving which aligns well with the cost-conscious Indian consumer.
This extent of customizability ensures that such local appliances operate more efficiently under local conditions, have a longer service time, and better meet the needs of Indian households thereby becoming a trustworthy and inexpensive option for the customers.
With the evolution of the home appliances market in India, local manufacturers are changing the perception of affordability and, more importantly durability, by making their own parts. It is cost-effective and ensures that the products are made for Indian conditions, for example, humidity and power fluctuations. In light of such quality and internal markets, small brands become even more aggressive in prices implying that low-priced quality appliances become available to more households. In this case, deflationary innovations that provide consumers with long-lasting goods at low prices, which they require, disrupt the industry structure.
