2X Jump in Sales of White Goods. How?
White Goods? What Is in a Colour!
White good is a British concept that refers to heavy consumer durables like refrigerators, washing machines, dishwashers, air conditioners, etc. that were traditionally manufactured only in white colour.
Times have changed and today a consumer is spoilt for choice as these products come in varied colours and designs, thus we generally prefer calling them as domestic appliances, rather than ‘White Goods’!
Consumerism On The Rise!
This decade has seen a social revolution which has encouraged consumerism and the grounds for this are numerous. Dual income families, nuclear families, digitization, exposure, easy loans, etc. have prompted people to buy consumer durables quite frequently.
A spurt in the sales of such goods came around a few years back when NBFCs tapped this sector and started offering loans at easy EMIs and low interest. Most of the times, the loans offered are at zero interest which means no extra burden on the consumer, encouraging them to buy the best they can afford.
How Does It Work for NBFCs?
NBFCs have not only penetrated this segment but have captured the market at a rapid pace. Going by economics it makes no sense to hand out interest-free finance schemes! The strategy here is that the interesting part is borne by the manufacturer of goods, who in return sees high volumes in sales of its products.
Ease of Availing The Finance Scheme!
The biggest lure of these schemes is that they can be easily availed by a consumer in the shop itself, with minimal formalities, it is done within five minutes. The flexibility of EMIs makes sure that it is easy on the pocket of the buyer too!
Penetration of NBFCs Far & Wide!
The reason for NBFCs doing so exceedingly well in this sector is that they are no more confined to the metros anymore. They have ventured into tier 1 and tier 2 cities, realizing that the consumers affordability has risen in such places.
Digitization has also played a major role as it has actually made the world small, everyone stays updated on the latest trends. Social media plays a pivotal role in people wanting to raise their living standards.
The concept of modern living and the apartment culture has given rise to the aspirations of this generation to live life well! So, a huge smart tv is no more a luxury but a necessity; the latest iPhone is a symbol of status and gone are the days of small refrigerators or semi-automatic washing machines!
Hunting for Opportunities to Grow Your Business?
Once your company is compliant you can exploit the varied segments including the white goods space. According to the statistics published last year, this space has witnessed a stunning growth of 29% in 2017-2018, proving that there is a lot of scope in the coming years.
To make the most of it, it is essential to tighten your belt and start working towards getting your NBFC functional promptly and lead your company on a fast track. A country with such a huge population and rising incomes is a bed of opportunities for NBFCs.
MUDS: A Sure Shot Guidance To Prosperity!
By seeking professional help from MUDS towards establishing your NBFC, you are surely going to get rewarded at the earliest as the professionals here will accomplish the task conclusively and positively!
“Consumer durable financing has been witnessing a spurt in the past few years and going by the indications it is paused for a leapfrog in the coming years!”
-Shweta Gupta, Founder and CEO, MUDS