India: China’s Xiaomi is going to enter the white goods space next year making the country’s largest smartphone maker a full-fledged consumer electronics firm in India. This will immensely accelerate the growth of white goods sector in the consumer goods industry.
Xiaomi officials are currently identifying potential categories including air-conditioners, washing machines, refrigerators, laptops and small appliances like vacuum cleaners and water purifiers for the Indian market. All the products will be smart appliances based on Internet of Things (IoT) or which can connect to the internet and other devices, and operated remotely, the executives said. The appliances foray is to open up newer avenues of growth in the Indian market where it is growing over 100% year-on-year. Xiaomi also intends to expand its smart television line-up next year in the country by both refreshing the portfolio and expanding the range. “The appliances which Xiaomi will launch in India will all have internet connectivity,” said an industry executive. “They would be launched online first, then in exclusive brand stores. Xiaomi also plans to make them available to large electronic and mobile phone retailers,” he said.
According to BlueWeave Consulting, despite years of robust profits, the white goods market is undergoing dramatic change. As a result, players in the industry, particularly mid-sized companies, are facing massive challenges. Many manufacturers were long successful with their strategy of “engineer for eternity, build production scale and leave selling to retail”. Connectivity also offers greater opportunities for customer acquisition and retention. The appliance itself provides information about its correct installation or efficient usage. In addition, even difficult maintenance becomes much easier; required replacement parts can be delivered much faster. This not only benefits the customer but also manufacturers. Each purchase, use or repair of a household appliance generates important data, helping manufacturers better understand their customers, provide higher quality services and more targeted products. This is a key advantage, especially in today’s highly competitive market.
According to the upcoming report by BlueWeave Consulting on “Global White Goods Market, By Type, By Distribution Channel, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, The market is expected to grow with a significant CAGR during the forecast period. Increases in standards of living, especially in the Asia Pacific region along with increasing disposable income of households, people are able to make purchases beyond their basic human necessities. This is leading households to purchase electrical appliances, which were earlier looked upon as luxury items. Technological advancements along with increased disposable income are driving the global white goods market.