India Mattress Market Outlook, 2022

RISE IN HOUSING DEMAND DUE TO DEMONETIZATION WILL GENERATE A NEW WAVE OF OPPORTUNITY FOR HOME FURNISHING PRODUCTS LIKE MATTRESSES: BONAFIDE RESEARCH

In India, the real estate market is artificially inflated due to the circulation of black money in the sector. As a result, current demonetization affected the real estate sector majorly and is expected to bring down the property prices. This, along with lower interest rates, will increase the demand for housing which in turn would generate the demand for home furnishing products like mattresses.

On the same day that Donald Trump was elected as president of the United States, India also received an unexpected, momentous announcement. On November 8th, India’s Prime Minister Mr. Narendra Modi announced that on the stroke of midnight all 500 and 1000 rupee notes, which mean 86% of the currency in circulation, would cease to become legal tender. The plan to demonetize the Rs. 500 and Rs. 1000 bank notes began six to ten months prior, and was kept highly confidential with only about ten people aware of it completely. The government's demonetization plan was a tactic to dismantle the cash-centric black market, cleanse the counterfeit notes, digitize the economy and get more of the population onto the formal taxable economic grid. A new redesigned series of Rs. 500 banknote, in addition to a new denomination of Rs. 2000 banknote is in circulation since 10 November 2016. People were given 50 days to redeem their canceled banknotes and this period came to an end on December 30th 2016.

According to recently published report of Bonafide Research "India Mattress Market Outlook, 2022", residential mattress market of the country constitute about 78% of the total mattress market. Residential mattress market is directly linked with the housing demand in any particular country. The current demonetization in India has decreased the prices in the real estate sector, thus spurring the demand for new homes which is expected to provide opportunities for the mattress industry. Demonetization is likely to improve government tax collection by broadening the tax base and enabling them to take up development and infrastructure projects on a war footing and boost the growth of the economy. The government would also be in a position to fast track the initiatives such as 'Housing for All by 2022' and 'Development of 100 Smart Cities'. This influx of money into the monetary system will also put more money into the pocket of home purchasers through lower tax burden and incentives for home ownership. Hence, there are plenty of opportunities for mattress manufacturers and retailers to work together to propel the growth.

Globally, the mattress industry has advanced and there are many international brands with technologically superior products available in the market. But, the Indian mattress industry is still far behind. This is primarily because Indian consumers are unaware about the significance of using a mattress or they are ignorant about the fact that an investment in the mattress is an investment for one's health. India is still an emerging market for mattresses as people here look for good quality products at lower prices. Moreover, the technological advancements have still not managed to catch the consumer’s attention. Mattress is predominantly an unorganized market in the country with many regional players operating in it. However, organized brands are now reporting bullish growth and aren’t endangered by the unorganized players as they are trying their best to reach consumers of all the cities across India.

Major Indian companies operating in the mattress market of India are Kurlon Enterprise Limited, Sheela Foam Limited, Peps Industries Pvt. Ltd., Springwel Mattresses Pvt. Ltd., Coirfoam (India) Private Limited, Duroflex India, Godrej Interio (GI) and Springfit Marketing Inc. Major international companies operating in the mattress market of India includes Sealy India Trading Pvt. Ltd., Emirates Sleep Systems Pvt. Ltd. and Simmons Bedding & Furniture (India) Pvt. Ltd.

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India LED Lighting Market Outlook, 2022

UJALA - A REVOLUTIONARY GOVERNMENT SCHEME, THAT IS LEADING THE INDIAN LED LIGHTING MARKET ON A SHEER GROWTH PATH: BONAFIDE RESEARCH

In 2015, with the target of replacing 770 million traditional lamps by the year 2019 Indian government already laid the foundation for tremendous growth of LED lighting market in India. With nearly 20 crore units sold under UJALA scheme in just 2 years, the overall LED lighting market has got a major breakthrough in terms of growth. Government is procuring all these units in bulk from the private players and is providing at a lower rate to the citizens. Hence, this scheme has emerged as a win-win solution for the manufacturers as well as the consumers.

In the initial stage, when the LED lights were introduced in the market it was very troublesome for the technology to get a space in the lighting industry that was highly penetrated by the incandescent and CFL lights. To compete with these technologies which were available at a very lower price seemed to very difficult as the major proportion of Indian population comprises of the middle class income group people. Moreover with the lower demand, manufacturers were also not able to take the advantage of economies of scales and pull down the per unit price of LED lights. The only thing they were in need was indeed a bulk order which allows them to do a large scale production and pull down the prices. UJALA and SLNP schemes by central government became the reason for this huge production, thus lowering down the prices and setting the LED lighting market on a growth path.

According to recently published report of Bonafide Research, "India LED Lighting Market Outlook, 2022", the LED lighting market which could not constitute of even 10% of the total lighting market till 2011, has grown above 20% in the current year 2015. The major development of the market took place in the last two years of 2015 and 2016. Sales of LED lights has grown more than 10x times in the past two years, making the technology as one of the fastest growing in India. It is very obvious that the people do not replace a bulb unless it stops working, but the problem which was arising till 2014 was Indian consumers replacing the old incandescent of CFL bulbs with the same technology and not the LED lights as they were costlier. It was very necessary to make people tend towards using the LED lights at the time of replacement. When the Modi government introduced UJALA scheme, people literally starting running for getting the maximum units of 10 LED lights fixed by the government. This led the foundation for repurchase of LED lights and creating a strong market scope for the same.

Moreover, the exhaustive promotional activities carried out by the LED manufacturing companies also played a major role in convincing people to buy LED lights. Players tried hard to make people aware about the long term cost effectiveness of LED lights as well as their environmental benefits. Another major thing that happened was a steep fall in the market prices of LED lights when the government started providing these lights at a very cheaper rate. At present while the UJALA bulb is available at Rs. 70, the market rate is somewhere between Rs. 110-130 which is not a huge difference. With the declining prices of the LED lights, sales of private players have also increased significantly. After achieving the target of 770 million units, the government will move out from the market making the whole field open for the private players. The efforts which have been made in the current years have given spontaneous results and it will carry on providing its fruits to the private players in the coming years as well.

Major companies operating in the LED lighting market of India are Philips Lighting India Limited, Havells India Limited, Surya Roshni Limited, Bajaj Electricals Limited, Syska LED Lights Private Limited, Crompton Greaves Consumer Electricals Limited, Osram Lighting Private Limited, Wipro Enterprises Private Limited, Eveready Industries India Limited and Moser Baer India Limited.

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India Refrigerator Market Outlook, 2022

GST SAYS - GET READY TO PAY MORE FOR REFRIGERATORS AND MAKE YOUR POCKET FEEL COLD: BONAFIDE RESEARCH

The Goods and Services Tax has revolutionized the Indian taxation system. The GST Act was passed in the Lok Sabha on 29th March, 2017, and came into effect from 1st July, 2017. Under the GST slab, all home appliances and consumer durables will attract a 28% tax. For durables like television, air conditioner, refrigerator and washing machine, the cumulative tax (excise and value-added tax) before the implementation of GST was around 23-28% depending on the state.

The hot and humid weather conditions have made consumers increasingly concerned about food spoilage and hygiene levels (for cooked food, perishable food items, beverages, and others) and have generated the demand for efficient refrigerators. Moreover penetration level in India is very low only about 27% which causes a greater demand for refrigerators in rural as well urban areas. In the modern age, many electronic appliances have become part of the basic needs. Every household has a fridge, washing machine, vacuum cleaner, chimney etc for the fulfilment of such basic needs. Prices of televisions, refrigerators and air-conditioners has gone up by some 4-5% from July with the goods and services tax (GST) council levying 28% GST on consumer electronics and durables as compared to the previous tax rate which was around 23%. The companies said they will pass on the additional tax burden to consumers which may lead to a temporary impact on demand.

According to recently published report of Bonafide Research “India Refrigerator Market Outlook, 2022”, overall refrigerator sales volume are expected to grow with a CAGR of more than 5% over next four years. Direct cool segment dominates the refrigerator market with 70% share and the rest 30% is of frost free segment. This scenario in the Indian market is set to change in the coming years. Now, consumers are moving toward technologically advanced products due to affordability offered by retailers by way of easy financing options. Features that were considered luxury have now become necessity and started influencing the purchase of Indian consumers. Hence, frost free refrigerators are getting momentum in the market. LG is a major player in direct cool refrigerator segment whereas Samsung is known for its frost free and premium segment refrigerators. In terms of region, Southern and Northern India together contributes for more than 55% to the total refrigerator market.

Price of refrigerators may rise this year because of higher input costs and a new tax structure. Prices of components like compressors for ACs and refrigerators have already risen up by approximately 4%, which in turn will cause higher price for the end products. However, companies are still relieved as they are looking upon festive seasons which are coming soon. Indians are very auspicious about the 'Subh Muhrat' therefore they purchase large appliances on such festive occasions. According to the industry players, refrigerator demand will not get much affected by the 'GST Hurricane' on such festive occasions. But rural markets may feel the heat of this price increase. On the other hand, some states like Maharashtra will have a positive impact after GST implementation. Manufacturers in Maharashtra would be the only one’s getting relief under GST as they were previously charged octroi at the rate of 5% after the other taxes which were almost 25-26% on household electronic appliances. This made their tax structure much higher than other states but now prices could marginally decline there.

Major Indian companies operating in the refrigerator market of India are Samsung India Electronics Private Limited, LG Electronics India Limited, Godrej & Boyce Manufacturing Company Limited, Hitachi Air Conditioning India Limited, Whirlpool of India Limited, Videocon Industries Limited, Panasonic India Private Limited, Haier Appliances (India) Private Limited, BSH Home Appliances Private Limited and Sharp Business Systems (India) Private Limited.

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India Fragrance Market Outlook,2022

ORGANIZED DEODORANT AND PERFUME PLAYERS TO DOMINATE THE FRAGRANCE INDUSTRY IN INDIA BY 2022: BONAFIDE RESEARCH

Factors like rise in young population, noticeable demand for fragrance products from tier II and tier III cities, hotter Indian climate and big players entering the market space is resulting in increased demand for fragrance products.

The fragrance industry's rapid growth is attributed primarily to the advent of functional products with several characteristics. The fragrance market of India has been categorized into perfumes and deodorants, out of which deodorants have been doing pretty well since past few years. However since ages, Indian people have used perfumes and perfume oils on their body. The late 19th century was the first real era of perfume when new scents were created because of advances in organic chemistry knowledge. Synthetic perfume products were used in place of certain hard to find or expensive ingredients. The fragrance market in India has been on a high, in terms of production, consumption, import as well as export and is in the process of growing exceptionally with more youngsters wearing fragrances. Youngsters are infusing perfumes and deodorants in their daily personal grooming routine. The Indian fragrance market is further differentiated between organized and unorganized markets.

According to a recently published report by Bonafide Research, "India Fragrance Market Outlook, 2022", the organized market for fragrance products like deodorants and perfumes is set to grow extraordinarily and reach to a total market size of around INR 6500 crore by 2019. The expanding product lines due to significant technology advancements and growing importance towards personal grooming & appearance; coupled with increasing consumer spending on beauty and wellness has contributed to the growth of fragrance market. The Indian market for fragrances consists of organized players like HUL, ITC, J.K Helene Curtis, McNroe Consumer Products, Marico, Nivea etc. which are giving tough competition to unorganized players. Foreign giants like Avon, Coty, L’Oréal have also set up their shops locally and are expected to compete rigorously to gain an upper hand in the market.

In the past, attar and alcoholic perfumes were the only significant categories of the fragrance market, and were mostly represented by unorganized players with the major chunk largely imported. However, with the passage of time more and more organized players have entered the market, thus increasing the overall market size and making it even more compelling for the unorganized players to introduce new cost effective products. Organized players are keeping their product prices in traction so as to capture a larger size of the market as India consumers have a tendency to buy a product that is low-cost and doesn't burn a hole in their pockets. Significant upward growth trend is expected, given the increasing scale of local firms and the need and demand for standardization of products. High-end sophisticated fragrances are set to have an increase in demand as consumers look to impress their peers, subordinates in office environments.

Major companies operating in the fragrance market of India are Hindustan Unilever Limited, Vini Cosmetics Private Limited, ITC Limited, Nivea India Private Limited, McNroe Consumer Products Pvt. Ltd., Marico Limited, J.K. Helene Curtis India Limited, Cavinkare Private Limited, Burberry India Private Limited, Coty India Beauty and Fragrance Products Pvt. Ltd., Avon Beauty Products India Pvt. Ltd., TTK Healthcare Limited, Emami Limited, Vanesa Care Private Limited, Adjavis Venture Limited, Wipro Enterprises Private Limited and Mankind Pharma Limited.

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GST: The cherry on the top of financial dearth, why India might not achieve its 100GW solar target by 2022

While financing is seen as the biggest bottleneck to the growth story of India’s ambitious solar target, the latest decision of Goods and Service Tax council to impose 5 per cent GST on solar equipment is expected to push tariff by 4%, contrary to earlier concerns that the centre might impose 18 per cent GST on solar equipment. The target which already needs overall investments of Rs. 6 lakh crore by 2022, has missed the yearly targets of solar power capacity additions set by the government in past. With already lower financial inputs and renewable energy companies which are far away from achieving their targets, financiers are undetermined about cash outflow in upcoming years.

The government's foremost surprise announcement that solar photovoltaic cells and modules will attract a levy of 18 per cent under the Goods and Services Tax regime that came into force on July 1 2017 caught the industry by surprise, but according to specialists it is unlikely to have any lasting impact on the rapid growth of India's solar energy sector. Later on, it was clarified by the revenue secretary of ministry of finance that it is placed under the 5 per cent tax bracket. Out of the total power generation target, 100 GW would be from solar power, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power. To achieve the proposed solar capacity of 100 GW target by 2022, with the said value of overall investment required it becomes obligatory for government to keep the duties down on solar power equipment. Considering where India started from in 2010, when the Jawaharlal Nehru National Solar Mission became active, the growth of solar power in India has been phenomenal - from 2 MW in 2010 to 12,000 MW at present, yet it is not up to the mark intensifying up capacity that requires a rate no country has done before and so is a tough task.  Currently, on an average, the country is adding 2000 MW of solar power annually. At this rate, 100,000 Mw in six years looks farfetched even if one was to assume that India can match China which has added solar capacity at an ever-increasing rate. The Union ministry of new & renewable energy pegs the annual growth of solar power at 15,000-17,000 MW.

According to recently published report of Bonafide Research, "India Solar Photovoltaic Market Outlook 2022", a latest trend that has set its foot in the Indian market is the increasing demand for residential rooftop solar plant. For the large scale utility solar power plants, experts and investment trackers are still maintaining their stand that there are big investors betting on India's renewable energy sector but are sitting on the fence awaiting clarity on policy(GST). The JNNSM target, as of now seems unattainable but may get achieved only if adequate capital and required infrastructure will be produced year to year. The target would have looked more reasonable if only the evacuation infrastructure was in place. The ambitious 'Green Energy Corridors' project envisaged in 2011 as an alternative transmission network has been a non-starter with no major lines being built or tendered out. It's only now that the government has decided to 'nominate' state-owned Power Grid Corporation to build it with assistance from the states.Power Grid, which designed and calculated total expenditure five years ago, is five-fold now with targets being revised in the same quantum. Amid all this, the point being ignored is that renewable energy like solar is an alternating power source and grid-connected solar energy would need the same amount of conventional energy as balancing power. Thus, there is equivalent coal or gas based capacity that needs to be built or fired along with solar energy. NTPC, for instance, can bundle thermal power and solar energy and sell at some average rate. The bundling and the sale would also face tariff challenges. Solar power is priced at average Rs 6-8 a unit.Bundled power would be Rs 3.5-4 a unit. Also, there are no buyers for expensive power. The financially stressed state utilities are not willing to buy even conventional power even at Rs 3 a unit. The historic drop of price for solar power to around Rs 2.5 is actually scaring away investors. Moreover, there is the absence of financing options.The biggest financial challenge faced by developers has been access to low-cost finance. While developers using imported components and cheaper EXIM Bank loans (10 per cent interest for 18 years) have prospered, those using indigenously manufactured equipment have had to avail costlier loans (13 per cent for 10 years). This has diminished the confidence among the investor community.

Major domestic companies operating in the solar photovoltaic market of India areVikram Solar Pvt. Ltd., Waaree Energies Pvt. Ltd., Tata Power Solar System Limited, Moser Baer Solar Limited, XL Energy Limited, Alpex Exports Pvt. Ltd., Renwsys India, Emmvee Photovoltics Pvt Ltd, Lanco Solar, Saatvik Green Energy, Kotak Urja Pvt Ltd, Goldi Green Technoligies Pvt Ltd, Surana Solar.

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India Express Logistic Market Outlook 2021

THE ORGANIZED SECTOR OF THE INDIA EXPRESS LOGISTICS MARKET IS EXPECTED TO CONSTITUTE A CAGR OF 14.59% IN THE COMING FIVE YEARS: BONAFIDE RESEARCH

Regulation GST, “Make in India” initiative, Push on transport infrastructure, and burgeoning e-commerce market will prompt the Logistics Service Sector in general and Express Industry ahead in the coming years.

According to recently published report of Bonafide Research “India Express Logistics Market Outlook, 2021” the organized sector is holding major share of the Indian express market. The major players involved in the same consist of BlueDart, Gati, Safexpress, TCI, Indian Railways, and Indian Post etc. The unorganized players are the local regional players who deliver the parcels and at a very low cost who also acquire a large share of the market. The express industry stood at USD 3.39 Billion in 2015. The organized express market had recorded a CAGR of 17.50% till 2015. The organized segment is expected to exhibit a faster growth in terms of value than the unorganized in the total express market.

Growth in the logistics industry depends on infrastructure availability and involvement of private players and increased government spending which will catalyze the growth in the industry. Currently, more than half of express shipments are delivered through road network. With push on Logistics infrastructure and specifically on road connectivity the efficiency is expected to improve in future. The overall speed of travel still remains low at 35-40 kilometers per hour for India compared to global average of 60-80 kilometers per hour. Companies in India currently outsource an estimated 52% of logistics, and 3PL represents only 1% of logistics cost. As of now, the 3PL activity is limited to only few industries like automotive, IT, telecom and infrastructure equipment. E-commerce giants will slowly enter the hyperlocal or express delivery segment, in the critical battle to reach customers faster competing with on-demand startups that promise to deliver products within an hour, typically by tying up with local stores.

Outsourcing will obviously make (deliveries) cheaper. It is also to the advantage of logistics companies, who can cooperate with such clients and, therefore, be more efficient in their utilization of resources. Implementation of Goods and Service Tax (GST) is expected to streamline the processes and reduce a lot of these delays. With GST, multiple tax regimes with different rules and rates across states will merge into a single tax structure. This will reduce the need for check posts and improve efficiency of operations for the Express service providers by reducing delays and paper-works. Express Industry is nimble in terms of growth in market size along with concomitant improvement in policies and infrastructure. The industry can be classified broadly based on the mode of transport it uses, surface having predominance. Auto, engineering and hi tech industries have been the market drivers so far. However, it is expected that the blooming e-commerce market and relating 3PL and hyper local space will prompt the Express market in coming years.

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India Smartphone Market Outlook, 2020

Chinese smartphone makers Vivo and Oppo giving tough competition to the home grown vendors in the Indian Smartphone Market: Bonafide Research

In the past, when there were only features phones, the use of smartphones was a fantasy to the middle class and a reality for the rich. Feature phones were vital source of communicating when people were not that tech savvy and the only reason of owning a phone was to call or message someone. But now, smartphones have rapidly become a viable alternative to products like feature phones, Personal Digital Assistants (PDAs) and laptops; offering components such as voice and SMS coupled with mobile internet applications, multimedia functionality, high speed data processing capabilities and inbuilt GPS capabilities. The smartphone market in India is one of the fastest growing markets in the world and not so surprisingly this is attracting many global manufacturers to enter this space.

According to a recently published report of Bonafide Research, "India Smartphone Market Outlook, 2020", Chinese smartphone vendor BK Electronics, who has brands like Oppo and Vivo in India, has entered the top ten manufacturers list in FY 2016-17 and have seized a market share of more than 10% in terms of total shipments. Oppo and Vivo are sub-brands owned by BBK Electronics, which has been one of the biggest OEMs in the electronics industry. Oppo entered in the year 2013 and Vivo entered in the Indian market in 2014. Both these brands are catering to the premium smartphone segment in the country. Due to a margin payout that is 5-6% more than what the other international or local mainstream brands offer, both the brands have been emerging as the trade favourites among sellers in India. Moreover, they are shelling a higher amount in terms of payment for display space and branding. All of this is creating rapid inroads for both these brands into the smallest of neighbourhood stores where Samsung and domestic brands used to rule. Hence, the Chinese intrusion on the Indian smartphone market has started to give tough competition to the domestic as well international brands like Samsung, Micromax and Intex. Entry of these Chinese phone makers made domestic brands suffer in their market shares during the last financial year 2016-17. Both the brands are now making investments on product service and the price is bound to be cheaper for the consumer on a like-to-like basis than the mainstream brands without any compromise on quality.

Vivo increasingly focused on the Indian market and has recently been appointed the exclusive sponsor for the IPL tournaments replacing long time brand Pepsi. Oppo also had a tie-up with popular India TV reality show ''Bigg Boss'' to reach the common household on a daily basis. Looking purely from numbers, Vivo and Oppo seem to be doing exactly what is required to earn such growth by strategising to be on the top of mind. Within a span of 2-3 years since their entry in India, Oppo and Vivo have made such a remarkable development in India that almost every mobile store has a promotional banner of either Vivo or Oppo. Another Chinese brand, Xiaomi has taken the Indian smartphone market by storm. Even though, it entered the market with a primary focus on online sales and minimalistic product portfolio, the brand managed to earn the hype and market share in FY 2016-17. From FY 2015-16 to 2016-17, the company's shipment increased by almost 67%, indicating the fact that Xiaomi is all geared up to take on the domestic as well as international smartphone manufacturers.

Major companies operating in the smartphone market of India are Samsung Electronics India Private Limited, Lenovo (India) Private Limited, Apple India Private Limited, Xiaomi Technology India Private Limited, Micromax Informatics Limited, Intex Technologies (India) Limited, Oppo Mobiles India Private Limited, Vivo Mobile India Private Limited, Panasonic India Private Limited and Asus India Private Limited.

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