By Niladri Datta, Head of Marketing, LG India
A wholly owned subsidiary of LG Electronics (KRX: 066570 LSE: LGLD), LG Electronics India Pvt. Ltd. is one of the most formidable brands in consumer electronics, home appliances, IT hardware and mobile communications space. Established in 1958, LG Electronics has a current market cap of KRW 7.67 Trillion.
The evolution of technology not only shapes the lives of individuals but also that of a nation. Whether at home or at work, technology can be life-altering as it adds comfort to our lives and hours to our days. While ‘connected’ home appliances enable and empower personal spaces, smart technology boosts productivity and efficiency in professional environment as well. All these, when combined, make for a dynamic economy in a nation that is embracing positive changes to boost growth.
The year 2015 will be defined by certain technological trends in the consumer durable industry. What seemed to be a figment of someone’s imagination on reel life seems to be becoming more real. Today we have machines that are intuitive and learn and act accordingly with very little or no human contact and we have products that we can interact with at the switch of a button.
Today consumers can operate their washing machines, their music systems and their refrigerators via their smartphones. Imagine your house coming alive with your favorite music as soon as you unlock your front door? Imagine using your TV to Skype, chat, mail or game?
Technology has empowered the consumer to become king. Today a washing machine obeys your order and your load is washed as per your specifications before you reach home, your air conditioner has the room at a temperature that you are comfortable with. Smart washing machines are equipped with intuitive smart touch display that makes it easy to select or download appropriate wash cycles via a Wi-Fi connection. And that is not all. Smart technology makes it possible to sync one’s fridge to a call-center through a smartphone to help diagnose and solve any problem the refrigerator may have, quickly and correctly. Innovative technology allows air-conditioners to be energy efficient and keep the mosquitoes away.
There is no lack of development in the consumer durable sector. Having said that, like every other sector there are certain challenges that this sector faces too, foremost among being the increasingly expensive raw materials and high taxation structure in the country.
However, despite the challenges what works in favor of the consumer durables industry is the vast opportunity for growth of the sector itself. With the continuous inflow of disposable income, aspirational buying is on the rise and advancement of technology in consumer durables being embraced by those wanting to upscale in life. With the rising rate of growth of the GDP, the purchasing power of people with higher propensity to consume with preference for sophisticated brands provides constant impetus to upward growth of the white goods industry segment. This, of course, also means that there is a healthy competition between leading brands in consumer durables space.
The growth of the consumer durable sector is inevitable and will not ebb any time soon in India thanks to the constantly growing market space. However, products that will succeed for sure include those that adapt green technologies, are efficient both in terms of saving power and saving time for consumers.