The consumer durable finance market is one of the areas of growth that the country is witnessing. The aspirations of the consuming class are fueling the market, and this is happening due to discretionary spending. Even in the case of the growth trajectory, the current market is standing at USD 1.21 billion in 2023.
As per the current growth trend, there is a CAGR of 21.85%, which will bring the market around USD 3.95 billion. The market trends show that people are choosing digital finance solutions and how they can help grow the market.
For example, one can find a loan agent who can help a person get a loan for that consumer product and meet their aspirations and desires. In this blog, we will understand how consumer durable finance is helping to grow the market and why it’s a great time for the consumer appliances company.
Key Drivers Which is Moving the Market
When it comes to consumer durable, the rise in consumption is happening from the discretionary income that is coming from the job. The country is also showing a trajectory where people are doing upward mobility and that will help them to develop the lifestyle which they are trying to set.
Then, the next growth is the urbanization of the country. For that, people are coming to the city centers, which makes them purchase such items like a refrigerators washing machine which are necessary to ease out the activites of the person. The competitive financing option in this market allows a person to take advantage of the loan and make a success in this matter.
The Role of Digital Commerce and Loans
 When it comes to digital commerce, the availability of loan options is much easier as it allows an individual to deal with the charges up front, and then they can choose a product where they can make a value purchase.
In the previous decade, Flipkart and Amazon were the first participants in the market, which has opened the digital landscape. However, in this current decade, we are only witnessing the rise of this market as it allows them to venture into this, which only helps to create value in the Tier-2 and Tier-3 segments in the country.
The Challenges in the Regulatory Environment
When it comes to the rise in the market of consumer durable, certain challenges are dominant in thwe market. For example, one of the main challenges is income disparity, where people who fall under 10% of the country’s population are only venturing to make money. Whereas people who are in the bottom section of the population still can’t afford these amenities which is now growing in the country. From the government’s perspective also, certain regulatory challenges are slowing down the growth of the market. Financing below a certain threshold is not applicable, as it might result in poor credit history and that can be a thing of concern for the banks.
In hindsight, it’s a valid point that the credit book of the bank must not get worse as it damages the institution, and that might result in bigger problems. However, it’s slowing down the market, which is beneficial for the industry right now.
How Retail and E-Commerce Sectors are Increasing the Market Value
In the consumer durables expenditure, the retailers and the e-commerce sectors are some of the parts that are again fueling the consumer durable markets. E-commerce and organized retail markets are something that helps to increase the market share of consumer durables.
Technological advancements are something that allows a person to get items throughteh use of certain websites and e-commerce apps. When it comes to the use of the right e-commerce sites, such as Meesho and other apps, all these are further penetrating the market.
In terms of financing consumer durable loans, there is are finance DSA app that helps a person to get those deals and make those purchases with easy EMI options. The rise of the credit card market is also showing how the increase in consumer durable spending is increasing and that is helping the customers to get a better possibility to buy a product comfortably.
This element shows how the market of consumer durable spending is increasing in India and how that is making a benchmark in the industry.
