The Indian appliance and consumer electronics market was worth ₹2.05 trillion in 2017. The market is expected to expand by 9 percent CAGR and reach ₹3.15 trillion by 2022. Growing awareness, easier market access and a change in lifestyle habits are the key drivers of growth for the consumer electronics industry. In the coming years, the industry can expect growth from rural markets as brand penetration increases.
Electronics production reached ₹3.88 trillion rupees in FY2018 while the consumer durables index under the Index of Industrial Production for consumer durables has grown by 5.5 percent between April 2018 and March 2019. The export of consumer durable goods also reached a high of USD 451.29 million in FY2019. If the Indian ACE market manages to gain from the increasingly fractious trade relations between the United States and China, these numbers can witness a significant jump.
Moreover, with the GDP growth slowing down in recent quarters, the Indian Government has announced an upfront infusion of cash in the public sector banking system to boost lending. Ultimately, the consumer electronics market in India looks primed for growth in the near future.
If you are a vendor for the Consumer Electronics Industry
With some prudent financial and operational measures, you can benefit from the increase in demand that is expected from the consumer durables market.
Align your production with what consumers are buying
Smart home products and IoT devices are going to rule the roost. Products like smartphones, smart TVs, and wearables are high-growth categories. By aligning your manufacturing processes with these categories, you can ensure revenue and business growth.
Going green with your energy consumption and manufacturing processes
Environmental conservation and meeting the goals set by the Paris Climate Agreement are high on the current government’s list of things to do. By switching to green energy and production processes, you will not only find government policies favourable but also ensure long-term business gains.
Gain from the increasing competition in the consumer electronics market
The lucrative space available in the consumer electronics industry is attracting more investment from big businesses like Micromax, Hindustan Unilever, and Voltas. As an existing vendor, you stand to gain from this increase in market competition. Explore new supply deals and expand your network to grow your business.
Finance your new operations with Supply Chain Finance
In recent years, businesses have started looking for alternative ways of business finance in a bid to break free from the time-consuming loan processing of traditional lenders. Supply Chain Finance has emerged as a viable alternative to short-term small business loans as it fulfils the same basic requirements without accruing debt for the business owner.
Invoice discounting as a part of supply chain finance is helping small businesses with large, commercial clients, in realizing their growth potential. SME owners can get quick access to cash by collateralizing their accounts receivable through invoice discounting. As a vendor for the consumer electronics industry, you stand to benefit exponentially from invoice discounting. Here is how it can work out for you.
- Get in touch with an invoice discounting company to sign up for supply chain finance.
- Collateralize your accounts receivable, i.e. approved but unpaid invoices from your buyers.
- Agree to terms with the invoice financing company for getting 80-100 percent of the book value of the invoice.
- You pay a small processing charge for early payment and the buyer pays directly to the invoice financing company upon the completion of the due date of the invoice.
- Invest the money in new customer acquisitions, expanding operations and initiating new orders.
The biggest advantage of invoice discounting is perhaps that it does not count as debt but rather is considered an extension of your payment terms. So, essentially, you are getting paid early without a credit rating and other sundry requirements. That is why invoice discounting loans get processed faster than regular business loans which is considered as a critical element of modern supply chains.
So, are you ready to leverage your position as a vendor in the growing consumer electronics industry? Get in touch with us today, at firstname.lastname@example.org, for financial advice and signing up for invoice discounting.