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8/3/2019 Chiness Products

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Impact of Chinese goods onIndian economyGroup 1

Savio

Rohit

Jason

Achim

Kyle

Padmini


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Introduction

Consumer electronics are the productsthat are used everyday by the consumers.

Consumer electronics include theproducts that come under the category ofoffice products, communications, andentertainment.


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Classification of Consumer

Electronics Goods

Consumer electronics can be classified into

a. Personal computers

b. Telephones

c. Calculators , Playbackd. Digital video disk (DVD)

e. Video compact disc (VCD), video home systems(VHS)

f. Home theatre, music playersg. Color televisions (CTVs), cameras, camcorders,

portable audio, Hi-Fi, etc.


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Demand Drivers in Consumer

Electronics Sector

Increase in disposable income

Changing tastes of consumers

Increase in nuclear families

increasing number of workingwomen

Greater variety of choices

Growth in entertainment sectors


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Indian consumer Electronics IndustryExport


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Growth- India

Demand of video products, such as color televisions (CTVs),VCD/DVD players, and set-top boxes account for 90% of theconsumer electronic market.

Easy availability of finance is an important factor driving

growth for consumer electronics market.

Companies are also taking advantage of this factor byteaming up with banks to offer attractive loan schemes toconsumers.

According to supply projects (India market intelligent service),consumer electronics industry in India is growing at acompounded annual growth rate (CAGR) of 11%.


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Major Players in Consumer

Electronics Industry

The major players in the sub-categories of consumerelectronics are:

Personal ComputersSamsung, Wipro, HP, Compaq, Dell

VCD/D

VD

sSony, Panasonic, Pioneer, Toshiba

Hi-Fi/Music SystemsSamsung, Sony India, Thompson, BPL Sanyo Technologies,Videocon Industries, Philips India, Matsushita Television and

Audio Ltd

Colour TelevisionLG Electronics, Philips, Sony; Sansui, Samsung, BPL,Videocon, Onida, Aiwa, Akai, Thompson, Panasonic

Cameras/CamcordersSony, Canon, Olympus, Fuji film, Nikon


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Sony Corporation or commonly referred toas Sony

Japanese multinational conglomerate corporationheadquartered in Minato, Tokyo, Japan and is theworld's fifth largest media conglomerate.

Leading manufacturers of electronics, video,

communications, video game consoles,and information technology products for theconsumer and professional markets.


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Panasonic Corporation formerly known as Matsushita ElectricIndustrial Co., Ltd. Japanese multinational consumerelectronics corporation headquartered in Kadoma, Osaka ,Japan.

Main business is in electronics manufacturing and it producesproducts under a variety of names including Panasonicand Technics.

Since its founding in 1918, it has grown to become the largestJapanese electronics producer.

Also offers non-electronic products and services such as homerenovation services.

Ranked the 89th-largest company in the world in 2009 by the

Forbes Global 2000 and is among the Worldwide Top 20Semiconductor Sales Leaders


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Samsung Electronics is the world's largest electronicscompany with a 2009 revenue of $117.4billion headquartered in Samsung Town, Seoul, SouthKorea.

It is the flagship subsidiary of the Samsung Group.

In 2006, Business Week rated Samsung as 20th on its list ofglobal brands, 2nd in the electronics industry.

Business Week also ranked Samsung as 20th in innovation.

In January 2007, Brand Finance ranked the company as thenumber 1 global brand in electronics


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Videocon is an industrial conglomerate with interests all overthe world and based in India.

17 manufacturing sites in India and plants in China, Poland,

Italy & Mexico. It is also the third largest picture tubemanufacturer in the world.

In India the group sells consumer products like ColorTelevisions, Washing Machines, Air Conditioners,

Refrigerators, Microwave ovens and many other homeappliances, selling them through a Multi-Brand strategy withthe largest sales and service network in India.

Videocon Group brands include Akai, Electrolux, Hyundai,Kelvinator, Kenstar, Kenwood, Next, PlanetM, Sansui,Toshibha, Philips (TV Products) etc


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Computers and Laptops

Major players Dell, Acer, Sony, Wipro

Increased demand for computers and laptops

Increase demand in household and offices due toincrease in literacy

Cut throat competition due to Chinese laptopsproviding similar features and low cost


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TV, Music Systems and VCD/DVDPlayers

Increases in demand for entertainment

Large market

Increase in viewers

Competition from Chinese's systems have given

tough competition to players in this segment


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Ban On Chinese's Toys

Toys manufactured in china were banned

Toys were recalled

The head of its state food and drugadministration, Zheng Xiaoyu, is convicted

China start manufacturing of different products

Chinas economy rises due to increases in sale ofproducts

Increase in unemployment


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China in WTO

Chinas entry into the WTO opens up both opportunitiesas well as threats to the Indian industry

India and China globally compete in the same export

markets

Chinese entry shall make Indian exports uncompetitiveand threaten traditional Indian strongholds such astextiles, tea and jewellery.

China is ahead of India both in terms of trade opennessas well as its promised commitment to further tradeliberalization.


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Shall force Indian industry to become morecompetitive and shall pave the way for second-generation market reforms in India.

Labour market reforms, interest term structurereforms and basic infrastructure reforms shall spurgrowth and competitiveness by cutting costs.

Chinas huge market also becomes a potential

market for Indian goods and increasing domesticcompetitiveness can be leveraged by pushingexports.


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Effects of China products

Companies have tough competition for price

Products prove themselves

Come up with imie number

A hit in minds of base of pyramid customers

Call branded companies lower prices offer schemes

Increases in sales of electronics

Affects the SSI which contributes to 4% of total

manufacturing in India


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There seems to be no way toescape the dragon

Using the big Indian Market to dump their products andthereby killing the Indian units

Ex: During Diwali China made crackers are sold in

Indian market. These crackers reportedly containedsulphur. Sulphur is more harmful than Nitrate used tomake crackers in India. Since the Chinese crackerswere cheaper, they managed to attract innocent andlargely illiterate Indian lot. As a result the Indian cracker

industry saw a decline in revenue.

Increasing popularity among Indian masses because ofcheaper prices. This has created negative effect onIndian manufacturing units and as a result many units

have shut down.


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60% of Industrial units in the industrial belts of Thaneand Bhivandi near Mumbai have shut down.

Due to cheap labor, China offers lower priced imports

such as textiles, clothing, electronic devices, machineryetc.

Also affected the Indian Export Market , as China hasreplaced Indian goods in the foreign market as being

cheaply produced.


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BLUEBERRY NOT BLACKBERRY

Same design, color shade, almost similar features,

very cheap


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Effect on Branded Companies

Nokia has lunched a colour phone inthe range of 1000/-

Samsung has lunched dual simphones

Philips launched 5.1 speakers withUSB and card reader

Sony DVD/VCD players salesdropped

Videocon still struggling


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Documents

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