Driven by rising disposable incomes and greater internet penetration in smaller towns, the Indian tech and durable offline retail market registered a 10 per cent value growth (year-on-year) in the January-September period this year, according to a report on Friday.
Smaller cities are emerging as key growth engines for India’s tech and durable market and in Q3 alone (July-September period), Town Class 3 witnessed a 9 per cent value growth, surpassing Town Class 1 (6 per cent) and Town Class 2 (5 per cent) cities.
Town Class 4 and above also showed a 3 per cent value growth, where media tablets grew by a whopping 90 per cent in Q3, according to the report by NielsenIQ (NIQ), the world’s leading consumer intelligence company, in collaboration with GfK intelligence.
Factors such as rising incomes, greater internet penetration and increased aspirations are driving consumers in these cities to spend more on everything from essential goods to premium products. The consumers have increasingly gravitated toward products offering convenience, connectivity, and sustainability.
“The flat volume growth, however, signals a significant shift toward premium, feature-rich products providing more than just basic functionality,” said the report.
“The Indian tech and durable market remains strong, driven by consumers’ demand for higher-end products with sustainable features,” said Anant Jain, Head of Customer Success–Tech and Durables, NielsenIQ.
This growth is fuelled by the shift toward connected, feature-rich appliances and smartphones, with a clear preference for products that offer both convenience and long-term value.
“The festive period also contributed to this growth, with more consumers timing their purchases to benefit from promotions and special offers.,” he added.
In the July-September period, the offline retail market for tech and durables saw a 6 per cent value growth in India, driven largely by the appliance sector. Telecom, the largest contributing category, recorded 7 per cent value growth in Q3 compared to Q3 2023.
“This uptick signals that consumers are opting for more expensive, feature-rich, and 5G-enabled smartphones. The IT category witnessed 5 per cent volume growth and 2 per cent value growth in Q3 2024,” the report mentioned.
For brands aiming to expand, tapping into this growing demand is not just an opportunity but a necessity to stay competitive in India’s dynamic market.
NIQ’s ‘2024 Mid-Year Consumer Outlook’ revealed that 67 per cent of surveyed urban consumers in India are more likely to try new products when they are both affordable and innovative.
(IANS)